Pan-African broadcaster MultiChoice incurred a net loss of 4.1 billion rand ( about $225.8 million) for the year ended March 31, 2024.
Its audited accounts released on Wednesday showed the company recorded a loss for the second year running.
Inflationary pressure and currency devaluation in markets like Nigeria and Ghana reduced consumer spending power, leading to a decline in active subscribers.
In Nigeria, its active subscribers dropped to 8.1 million (a 1.2 million decline), reducing the country’s revenue contribution to the Rest of Africa segment from 44% to 35%.
MultiChoice said in its executive summary, “Mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment,” as it announced the results.
In South Africa, it showed a 5% decline in active customers (7.6 million active subscribers at year-end).
“Consistent loadshedding through FY24 created an environment where customers without backup power were reluctant to subscribe to our service due to the uncertainty of whether they would be able to watch.”
Also, across all its markets, the number of premium customers (which includes the Premium and Compact Plus bouquets) dropped by 8%, and the mass market tier by 2%.
The company also incurred remittance losses of $59 million during the year from Nigeria as FX market volatility saw prices swing sharply. In FY 2023, that figure stood at $132 million.
Tim Jacobs, the Chief Financial Officer of the company, says in spite of a tough customer environment characterised by declining affordability, MultiChoice continues to witness robust acquisition in sports content with major sporting events boosting platform engagement.
