MultiChoice Group Resilient Amid Macroeconomic Pressures, Eyes Long-Term Growth
MultiChoice Group has reported a steady performance for the financial year, supported by strategic cost-saving initiatives and new product growth, despite significant macroeconomic headwinds and currency volatility. The Group achieved ZAR3.7 billion in cost savings—substantially exceeding its interim target of ZAR2.5 billion and nearly doubling the ZAR1.9 billion saved in FY24.
Despite a challenging consumer environment that led to an 8% decline in its 14.5 million active linear pay-TV subscriber base, the Group recorded a 1% organic revenue growth year-on-year (YoY), driven by price increases and strong performance from new services. In South Africa, subscription prices increased by 5.7%, while the Rest of Africa saw a 31% hike in local currencies to cushion the impact of declining subscriptions.
MultiChoice CEO Calvo Mawela said the Group’s resilience is rooted in disciplined execution, cost controls, and ongoing investment in long-term opportunities. “We remain focused on being Africa’s entertainment platform of choice,” said Mawela. “Technology shifts, piracy, and the rise of streaming and social media continue to reshape the industry, but our strategy and product innovation ensure we’re prepared for the future.”
Revenue from key digital services surged: DStv Internet climbed 85%, KingMakers grew by 76%, and DStv Stream rose 48%. Showmax also posted a 44% YoY increase in active paying customers, reinforcing the Group’s pivot toward digital and streaming platforms.
MultiChoice reported a positive equity position, thanks in part to currency stabilization, ZAR3.7 billion in cost savings, and an accounting gain from selling a 60% stake in its insurance business (NMSIS) to Sanlam.
On the financial front, the Group’s trading profit grew 20% YoY before accounting for foreign currency losses, investments in Showmax, and M&A activity. However, after absorbing ZAR5.2 billion in forex losses and Showmax’s operational costs, trading profit dropped to ZAR4.0 billion. Adjusted core headline earnings showed a ZAR0.8 billion loss, weighed by lower profit margins and hedging losses.
Free cash outflow for the year stood at ZAR0.5 billion, attributed to lower profitability and increased lease repayments. Nonetheless, effective working capital controls and a 29% reduction in capital expenditure provided some relief. The Group ended the year with ZAR5.1 billion in cash and ZAR3.0 billion in unused borrowing facilities.
Operationally, MultiChoice added 5,340 hours of local content, bringing its total library to over 91,470 hours. Shows like Big Brother Mzansi and Big Brother Naija maintained high viewership, while SuperSport aired over 47,839 hours of live sports and produced more than 1,000 live events. SuperSport Schools also saw a 46% increase in app users, reaching 1.2 million and delivering over 50,000 hours of content.
In South Africa, the company focused on retaining and regaining subscribers through content bundling, price adjustments, and partnerships with Capitec, MTN, and PEP. Across the rest of Africa, the Group applied inflation-linked pricing and cut spending in marketing, content, and subsidies. It also piloted weekly subscriptions in Uganda to align with local cash flow realities.
Showmax continued building reach through new distribution partners and improved payment systems, despite falling short of initial exponential growth targets. Irdeto increased revenue by 8% organically, with 42% of its earnings now coming from new security-focused service lines. KingMakers’ BetKing Nigeria performed strongly, and the new SuperSportBet in South Africa showed promising early results.
The fintech arm, Moment, expanded rapidly. Operating in 44 countries, it processed USD635 million in total payment volume—7 times more than FY24—and now handles 56% of all Group payment transactions.
Looking ahead, MultiChoice is prioritizing the stabilization of its video business, accelerated growth in interactive entertainment, fintech and insurance, and further cost efficiencies.
Management has set a new ZAR2.0 billion cost-saving target for FY26 and aims for MultiChoice SA to achieve margins in the mid-twenties range. MultiChoice Africa is expected to return to profitability, and Showmax aims to narrow its trading losses.
