MultiChoice set to report a net profit

Multichoice is to report a net profit between R1.2 billion and R1.3 billion from a net loss of R4.1 billion for the year that ended 31 March 2025.

This was revealed in a trading statement MultiChoice released on Thursday, 5 June 2025, about its financial results for the past financial year.

It stated that the current period has seen the continuation of unprecedented financial disruption for economies, corporations, and consumers across sub-Saharan Africa.

This was due to several macroeconomic factors, including weaker average exchange rates, elevated inflation and interest rates, and power supply challenges.

MultiChoice also had to face the impact of structural industry changes in video entertainment, such as the rise of piracy, streaming services, and social media.

MultiChoice also continued to invest in its streaming service, Showmax, which had a material impact on the group’s performance.

“The group has acted decisively to counter these headwinds by focusing on key areas within its control,” MultiChoice said.

This includes maintaining an inflationary pricing discipline, growing new revenue streams, and driving further efficiencies to manage costs and cash flows effectively.

The headwinds in South Africa and the rest of Africa led to a decline in MultiChoice Group’s operating profit of between 47% and 51%.

This means that the group expects its operating profit to fall from R7.9 billion to between R3.9 billion and R4.2 billion.

Although the group’s operating profit showed a significant deterioration, MultiChoice did report an improvement in its net profit.

MultiChoice stated that it had a downward adjustment on a put option liability, which would show as a gain on its income statement, although it is a non-cash item.

It also reported a 60% gain on the sale of its shareholding in NMS Insurance Services to Sanlam.

This helped MultiChoice report a net profit of between R1.2 billion and R1.3 billion, compared to a net loss of R4.1 billion in the previous year.