The man leading MultiChoice through rough waters

Calvo Mawela, MultiChoice CEO, faces the challenging task of steering the traditional pay-TV operator through its most difficult period to date.

Mawela was raised in Bushbuckridge, Mpumalanga, where his mother supported seven children on a limited monthly income.

With no funds available for tertiary education, his mother made a significant sacrifice: borrowing money from a “loan shark” to pay for Mawela’s engineering studies.

The loan, which carried uncertainty about repayment, enabled Mawela to pursue his dream of becoming an engineer.

This financial risk paid off, allowing Mawela to graduate with a BSc in Electrical Engineering from the University of KwaZulu-Natal.

He later earned the titles of registered professional engineer and member of the South African Institute of Electrical Engineers.

Mawela’s career began as an engineer at Sentech, where he worked on commissioning transmitter sites, gaining essential technical expertise in ICT and broadcasting.

He went on to hold senior positions at ICASA, focusing on technical regulations for the broadcasting industry, as well as at Orbicom and MWEB.

Mawela played a pivotal role in planning South Africa’s digital broadcasting migration and contributed as a planning expert to the International Telecommunications Union (ITU).

Additionally, he served as a councillor on the Minister of Communications’ advisory body for digital migration.

In 2007, Mawela joined MultiChoice as an executive. By 2013, he was appointed to oversee stakeholder and regulatory affairs for MultiChoice South Africa.

Four years later, he ascended to the role of chief executive of MultiChoice South Africa, where he oversaw MultiChoice South Africa and DStv Media Sales.

In October 2018, just before MultiChoice Group’s JSE listing, Mawela was appointed as the company’s chief executive officer.

“Calvo brings rich experience and a proven track record of managing critical business and regulatory issues in South Africa and the rest of the continent,” the company stated.

In its latest financial results announcement, MultiChoice acknowledged facing the most challenging operating conditions since M-Net’s launch in 1985.

South Africa has endured a decade of sluggish economic growth, further exacerbated by the pandemic, which has led to higher unemployment and financial strain on households.

The greatest challenge, however, is the global cord-cutting trend, as consumers gravitate towards more affordable streaming platforms like Netflix.

In the United States, cable and satellite TV providers have shed over 20 million subscribers in the past decade, with the trend gaining momentum.

Recent research predicts 80 million cord-cutting households in the United States by 2026.

While DStv has shown more resilience, MultiChoice faces similar pressures in South Africa and across its Rest of Africa markets.

In 2023, MultiChoice reported 23.5 million 90-day active subscribers, a figure that dropped to 19.3 million just 18 months later.

To counter these challenges, MultiChoice South Africa is concentrating on subscriber retention and reconnections while exploring remaining growth opportunities.

It is also pursuing measures to bolster financial performance in Africa, such as price adjustments to mitigate inflation and renegotiating content agreements.

Under Calvo Mawela’s leadership, MultiChoice has taken proactive steps to align its business with current economic realities and shifts in the industry.

Its cost-saving initiatives were accelerated, delivering permanent savings of R1.3 billion and setting a new target of R2.5 billion by the end of the financial year.

“While we’ve made huge inroads to reduce our cost base, there’s still more work to be done,” Mawela stated.

Another critical issue Mawela addressed was MultiChoice’s technical insolvency, where liabilities exceeded assets in the previous financial year.

Mawela explained that progress is being made to resolve this technical insolvency, which stemmed from non-cash accounting entries in the last financial year.

“We expect to return to a positive net equity position by the end of November this year, supported by several developments and initiatives,” he said.

Mawela and his team have also crafted a strategy to adapt to global pay-TV challenges as technological shifts disrupt the traditional broadcast business.

Showmax, which reported 50% growth in its paying customer base, positions MultiChoice to capitalize on the streaming revolution.

“We have successfully been implementing our strategy over the past few years,” Mawela told investors and shareholders.

He highlighted key achievements, such as investing in KingMakers, restoring profitability in the Rest of Africa business, and finalizing the Showmax partnership with Comcast.

“We remain committed to driving new revenue streams and see significant medium to long-term opportunities in video entertainment,” he said.

Mawela remains optimistic about MultiChoice’s growth prospects through streaming and adjacent new business ventures.