MultiChoice Group, the South African pay-TV giant, reported a headline loss of 800 million rand (approximately $45.13 million) for the financial year ended March 31, 2025, marking a sharp reversal from the 1.3 billion rand ($73.37 million) profit recorded the previous year. The company attributed the loss to unprecedented financial pressures across African economies, including rising inflation, currency volatility, and weakening consumer spending power, which have collectively dampened subscriber growth and increased operational challenges.
The group’s active linear subscribers declined by 1.2 million or 8% year-on-year to 14.5 million, with losses evenly split between South Africa and the rest of Africa. This decline reflects ongoing cost-of-living crises, which have forced many households to cancel their subscriptions.
Revenue fell by 5.2 billion rand (9%) year-on-year to 50.8 billion rand, mainly due to an 11% drop in subscription revenues caused by foreign currency headwinds and subscriber losses. Despite a disciplined inflationary pricing strategy averaging a 5.7% price increase in South Africa and 31% in other African markets the group only managed 1% organic revenue growth.
Operationally, MultiChoice implemented significant cost-saving measures, achieving 3.7 billion rand in savings, nearly double the previous year’s 1.9 billion rand. However, trading profit declined by 3.8 billion rand (49%) to 4 billion rand, heavily impacted by increased losses from the Showmax streaming service and foreign currency revenue losses.
Adjusted core headline earnings shifted from a profit of 1.3 billion rand in FY24 to a loss of 800 million rand in FY25, reflecting lower trading profit and hedging losses. The group also experienced a free cash outflow of 500 million rand compared to an inflow of 600 million rand the prior year.
Despite these setbacks, MultiChoice remains focused on operational efficiency, cost control, and expanding digital offerings. Streaming services showed promising growth, with Showmax subscribers up 44% year-on-year and notable increases in DStv Stream and DStv Internet subscribers and revenues.
The financial difficulties come amid ongoing corporate developments, including increased takeover interest from France’s Canal+, adding complexity to MultiChoice’s strategic direction.
In summary, MultiChoice faces significant economic headwinds and structural industry challenges but continues to adapt through pricing discipline, cost savings, and digital expansion to navigate a difficult market environment.
