Brands/Products
Subscription Fee Issues Take Toll on Multichoice Results
The latest performance report of Multichoice, where it posted losses for the second time may be an eye opener that the company at the centre of a storm in Nigeria over the controversial review of subscription fees is indeed under serious pressure caused by the crisis in the foreign exchange market and other operating challenges, writes Festus Akanbi.
For Multichoice, Africa’s leading entertainment company, this is certainly not a time to cheer. This is because its latest financial results have shown that contrary to popular belief, the company is not making enormous profits from its DStv satellite television service. The performance result which was in red confirmed that while the satellite television service contributes significantly to Multichoice’s revenue, the truth is that the company is not solely reliant on it.
MultiChoice reported loss-making for the year ended 31 March 2024 after incurring a net loss of 4.1 billion rand ($225.8 million at current exchange rate). The company recorded a loss for the second year running, its audited accounts released on Wednesday showed.
According to the company, the substantial net foreign exchange translation losses resulted from losses on, “USD-denominated non-quasi equity loans between MultiChoice Africa Holdings B.V. and MultiChoice Nigeria Limited.”
This, it added, “follows the depreciation of the Naira against the Dollar from a closing rate of N464.50 in FY23 to N1 308.00 in FY24.”
According to the income statement, revenue dropped 5.9 per cent to 55 billion rands due to a slide in subscription fees.
“The combination of foreign exchange headwinds and a lower subscriber base resulted in a net decline in group revenues of five per cent to ZAR56.0 billion,” MultiChoice said.
Counting the Gains of Diversification
The report showed that general and administrative expenses jumped to 18.4 billion rands from 16.6 billion rands a year earlier after surges in employee costs and software license expenses, weakening operating profit.
The report showed however that Multichoice’s diversification strategy has led to significant growth in other segments, such as Showmax, SuperSportBet, and Moment. These new revenue streams have contributed to the company’s overall performance, offsetting some of the challenges faced by DStv.
According to the financial results, several of the company’s other products and services also performed well. Showmax, in particular, has shown impressive growth, with a successful relaunch across 44 markets in sub-Saharan Africa and a significant increase in active users.
Highlighting the company’s achievements in the face of adversity, Multichoice Group Chief Executive Officer, CEO, Calvo Mawela, said despite a tough year, the company delivered a trading profit margin of 26 per cent in South Africa and a 48 per cent increase in trading profit in Africa.
“We’ve just published our results for the past financial year, which ended in March 2024. The year has been like no other in terms of economic turmoil, but we showed resilience and navigated significant headwinds – managing our business with focus, dedication, and tenacity,” said Mawela.
Emphasis on Efficiency
He added that the company’s financial results were a testament to its ability to adapt and innovate in a rapidly changing market, noting that the emphasis on efficiency has positioned the company for future growth, despite the challenges faced by its satellite television service.
“KingMakers delivered strong growth in the online business in Nigeria by growing monthly active online users by 37 per cent and online gross gaming revenues by 26 per cent, year-on-year in constant currency. The business launched BetKing Casino and a virtual football sportsbook service, BetKing FootballGO, in Nigeria and SuperSportBet in South Africa”, the CEO stated.
He continued: “SuperSport continues to bring fans the best of sports from across the globe. In the past year, we broadcast over 34,000 action-packed sports events, more live sports than any other broadcaster in the world. Highlights of the year were the Rugby World Cup, Cricket World Cup, Netball World Cup, FIFA Women’s World Cup, and AFCON.
“Also, SuperSport Schools continues to grow strongly and more than doubled its registered user base during the year. Showcasing South Africa’s talent of the future, the platform displayed 49,000 hours of live programming across 43 different sports, covering 1,100 schools and 14,500 teams.”
Mawela emphasised the company’s commitment to creating authentic African stories. “We are the largest producer of original content on the African continent and remain committed to creating and growing authentic African stories. We produced over 6,500 hours of local content, to bring our local content library to 84,000 hours of content. More than half of our general entertainment budget is spent on local content.”
Commitment to Innovation
With a cost savings target of ZAR2 billion (108.9 million) set for the upcoming year, the company is poised to continue its trajectory of growth and innovation.
“We know that nobody else has the content we have for the customers we serve. This puts us in a great position to prosper – by better understanding our customers’ entertainment choices, identifying their needs, and tapping into the growth opportunities that arise along the way.
“In the year ahead, our focus will be to drive scale in Showmax, Moment, and SuperSportBet and to grow DStv Insurance, DStv Internet, and DStv Stream. We are purposefully pursuing our vision of becoming Africa’s entertainment platform of choice with determination and vigour. Significant progress has been made towards achieving this strategic objective. Our combined efforts will put our business in a strong position to prosper once the macro-economic environment stabilises,” the Multichoice boss assured
ThisDay
By Modupe Gbadeyanka
A new Public Relations (PR) agency, FreshSight Communications, has promised to offer tailored services to its clients, as it joins the highly competitive industry.
According to the co-founder of the company, Mr Justice Mmadubugwu, FreshSight Communications will provide top-notch PR services tailored to meet the unique needs of businesses, organisations, and individuals seeking to amplify their brand presence and reputation.
He also expressed confidence in working with media partners to share compelling stories, promote innovative ideas, and spark important discussions that affect society.
“We are excited to introduce FreshSight Communications to the Nigerian market.
“Our goal is to become the leading PR agency for businesses seeking to establish strong relationships with their target audiences and stakeholders,” Mr Mmadubugwu stated.
FreshSight Communications said its services include media relations and crisis communications; brand management and reputation enhancement; digital PR and social media management; event management and planning; content creation and copywriting; and artist/influencers management.
By Philip Odiakose
Welcome to my first LinkedIn Newsletter in 2025, where I share insights as a public relations measurement professional with more than a decade of experience shaping conversations in Nigeria and globally.
As we step into 2025, the world of PR monitoring and measurement is undergoing a significant transformation. This year, we anticipate trends that will reshape how brands, PR agencies, and independent measurement consultancies collaborate, ensuring transparency, unbiased analyses, and actionable insights.
In this newsletter, I will provide a dual perspective: the Nigerian PR monitoring landscape and the global outlook for 2025.
Local PR Monitoring and Measurement Outlook: Nigeria in 2025
- Increased Demand for Transparency: Nigerian brands are recognizing the importance of transparency in PR outcomes. There will be heightened demand for agencies to provide detailed, unbiased performance audits.
- Adoption of Independent Measurement Consultancies: The era of self-evaluation by PR agencies is waning. In 2025, more Nigerian brands will partner with independent consultancies like P+ Measurement Services to ensure objective insights that foster accountability.
- Integration of Technology with Local Expertise: As AI tools and platforms gain traction, Nigerian PR professionals must strike a balance between technology-driven insights and localized expertise to cater to the unique dynamics of our market.
- Shift from ROI to ROO (Return on Objectives): In 2025, Nigerian PR practitioners will move beyond traditional ROI (Return on Investment) metrics that focus solely on financial outcomes. Instead, there will be a focus on ROO (Return on Objectives), emphasizing how PR efforts meet broader organizational goals such as brand awareness, reputation enhancement, stakeholder engagement, and social impact. This shift aligns with the evolving Nigerian economic landscape, where businesses prioritize long-term value creation and sustainability over short-term financial gains.
- Education as a Driver for Adoption: The need for education on measurement standards will grow. Initiatives like AMEC’s Measurement Month and local workshops like EvaluatePR event by P+ Measurement Services, Spin Sucks led by Gini Dietrich, and Measurement Base Camp by Paine Publishing led by Katie Delahaye Paine will play a pivotal role in driving adoption and bridging the knowledge gap among PR professionals.
Global PR Monitoring and Measurement Outlook: 2025
- Increased Collaboration Between PR Agencies and Measurement Experts: Globally, we will see stronger partnerships between PR professionals and measurement consultants to deliver credible, data-backed reports that influence boardroom decisions.
- Standardization Through Education: AMEC Measurement and Evaluation (International Association for the Measurement and Evaluation of Communication) and its members will continue leading the charge in educating PR professionals on best practices, ensuring global alignment on measurement standards like the Barcelona Principles, Measurement Maturity Mapper and Measurement Framework.
- Rising Demand for Unbiased Audits: Brands across the globe will increasingly seek independent PR measurement audits, avoiding conflicts of interest and ensuring that insights are impartial and actionable.
- Adoption of Technology and Real-Time Analytics: The rise of real-time monitoring and advanced analytics tools will enable PR professionals to adjust strategies dynamically, making campaigns more impactful.
- Focus on ESG and Social Impact Metrics: Environmental, Social, and Governance (ESG) metrics will take center stage in global PR measurement. Organizations will prioritize measuring how their communications align with sustainability and societal goals.
The Way Forward
2025 marks a year of audacious transformation in PR monitoring and measurement, both in Nigeria and globally. At P+ Measurement Services, we are committed to driving this change by partnering with brands, agencies, and global stakeholders to deliver transparent, unbiased, and impactful insights.
The success of PR measurement lies in the collaboration between PR professionals and measurement experts, coupled with continuous education and adherence to global standards. As a founding member of AMEC Member Lab Initiative, I am optimistic about the role we will play in shaping the future of this industry.
Let us redefine PR measurement together, one campaign at a time.
Philip Odiakose is a leader and advocate of PR monitoring, measurement, and evaluation in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMEC Lab Initiative, NIPR and AMCRON
By Dipo Olowookere
The world’s largest mobile virtual network operator (MVNO), Lyca Group, has taken a bold move to reorganise its certain business units and operations.
A statement from the firm explained that the action is to position it for sustainable growth in a competitive and challenging global market through digital capabilities.
This will result in faster delivery of innovative products and services, reduce overlaps, automate processes, and achieve substantial cost savings, which will be reinvested in market expansion and customer-focused initiatives.
It was stated that the proposed transformation forms part of Lyca’s long-term strategy to expand its global business services and support operations into its established service centres as well as new service hubs to be located in territories that have strategic importance while transforming country-specific operations into leaner, sales-focused organisations.
The company continues to focus on the growth of its mobile virtual network operations base and investing in new Mobile Network Operator (MNO) opportunities and markets in Africa, where it currently operates the Lyca MNO in Uganda—and elsewhere.
The organisation plans to announce expansion to new countries as soon as Q1 2025, including the launch of new digital brands in Spain and the USA.
Lyca expressed confidence that this transformation would deliver significant operational efficiencies, boost speed to market, improve customer experience, and ensure it continues to provide exceptional value to its customers worldwide.
“Lyca’s strategic reorganisation is a bold step forward, ensuring we remain a leader in delivering affordable, high-quality telecom solutions to our customers globally.
“This paradigm change not only enhances our efficiency but also strengthens our ability to adapt to a rapidly changing industry, ultimately benefiting our customers, partners, and employees globally,” the Deputy Chairman of Lyca Group, Premananthan Sivasamy, stated.
Lyca says it remains committed to supporting its employees during this transformation, noting that a smaller and more specialised team will remain in London to manage certain limited advisory, compliance, and financial functions that require a UK presence.
It disclosed that other roles will be handled either from our existing service centres or at hubs to be established in order to leverage cost efficiencies and expertise, enabling the business to reinvest resources in innovation and strengthen our business.
Already, it is engaging in a thorough consultation process with employees and will work closely with partners to ensure a smooth transition with minimal disruption to the high standards of service and collaboration they have come to expect from Lyca.
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