MultiChoice Grows Profit by 2% as Subscribers Hit 14 million
By Adedapo Adesanya
MultiChoice Africa Holdings saw its subscriber base hit 14 million as it achieved profitability in the 2023 financial year, marking a significant milestone despite challenging market conditions.
The company’s annual profit rose by 2 per cent, with strong subscriber growth and profit elsewhere in Africa offsetting poor market conditions in its home country.
For the year to March 31, revenue rose by 7 per cent to 59.14 billion Rand, while core headline earnings per share, which strips off some non-recurring costs and foreign currency fluctuations, increased to 8.28 Rand from 8.14 Rand a year ago.
However, the company said it would not pay a dividend.
Speaking on this, Mr Fhulufhelo Badugela, Chief Executive Officer of MultiChoice Africa, said, “Our industry has faced numerous challenges in recent times. However, we have risen above these challenges, leveraging our strengths to overcome them, and that is something we take great pride in.”
Over the past financial year, MultiChoice’s Rest of African business not only returned to profitability but also expanded its consumer services ecosystem. With the FIFA World Cup and popular local content such as Big Brother Naija, the Rest of African business witnessed substantial growth, adding 1.4 million 90-day active subscribers and reaching over 14 million households across the continent.
Driven by its commitment to local storytelling, the broader MultiChoice Group invested in local content, empowering African talent and fostering a thriving creative industry.
In its financial year 2023, local content accounted for 50 per cent of the Group’s total general entertainment spend, surpassing this target one year earlier than expected.
The group’s local content library now boasts over 76,000 hours, with local content production delivering a 9 per cent year-on-year increase to 6,587 hours.
Despite liquidity challenges in Nigeria, MultiChoice Africa successfully repatriated cash throughout the year. The company also launched five additional local channels across the continent, including Uganda, Ethiopia, and Ghana, while popular shows continued to achieve record viewership across various platforms.
MultiChoice Group has partnered with Comcast’s NBC Universal and Sky to drive Showmax’s market leadership in streaming on the continent. This partnership will ensure customers have access to a more diverse range of local and international content supported by Peacock’s world-class, scalable platform.
In May, MultiChoice announced a joint venture called Moment, which will be offering expanded payment infrastructure across Africa. Moment aims to transform the African payments landscape by making digital payments more accessible and reliable for domestic, cross-border and global payments.
“With the investments made over the past year, we are on track to transform from a traditional pay-TV platform to a broader ecosystem underpinned by technology.”
“As we navigate this ever-evolving industry, we stand strong, ready to deliver compelling African content that captures the hearts and minds of audiences across the continent.
“We are excited about our prospects and remain dedicated to making significant strides toward a profitable future as Africa’s most loved storyteller,” the CEO added.