MultiChoice loses 1.2 million subscribers as currency woes impact revenue

South African pay-TV group, MultiChoice, lost 1.2 million subscribers in the fiscal year ending in March 2025, as currency depreciation in key African markets and pressure on consumer spending drove revenue down 9%.

The pan-African pay-TV operator saw its active subscriber base fall by 8% to 14.5 million, with the decline split evenly between its home market in South Africa and the rest of the continent. Group revenue fell by ZAR 5.2 billion ($280 million) to ZAR 50.8 billion. The company attributed the drop primarily to foreign exchange headwinds, which wiped ZAR 5.2 billion from the top line, and the deconsolidation of an insurance business.

Key Takeaways

• Trading Profit: Declined 49% to ZAR 4.0 billion, hit by a ZAR 2.3 billion increase in trading losses from the relaunched Showmax streaming service and currency impacts.
• Subscriber Revenue: Dropped 11% on a reported basis, but was down only 1% organically, showing the severe effect of currency movements.
• Adjusted Core Headline Earnings: Swung to a loss of ZAR 0.8 billion from a ZAR 1.3 billion profit in the prior year.

The company’s operations in the Rest of Africa, which include major markets like Nigeria, were particularly hard-hit. A 26% weighted average depreciation of local currencies against the U.S. dollar resulted in a ZAR 5.1 billion negative revenue impact. Despite implementing average price increases of 31% to combat inflation, which helped deliver 3% organic revenue growth, reported revenue for the segment fell 23%.

Nigeria, the continent’s most populous nation, accounted for over half of the 7% subscriber decline in the Rest of Africa segment, which ended the year with 7.5 million customers. The company cited high inflation, power and fuel shortages, and ongoing piracy as significant operational hurdles.

A bright spot for the group was its revamped streaming platform, Showmax, which recorded a 44% year-over-year increase in active paying subscribers. The company also pointed to ZAR 3.7 billion in cost savings, which partially offset the steep decline in trading profit.

*This is a developing story