Showmax will make R18 billion in five years – Yolisa Phahle

MultiChoice executive Yolisa Phahle said Showmax is set to make R18 billion in net revenue in 5 years with an EBITDA margin of 25%.

Phahle, MultiChoice’s CEO for connected video and general entertainment, gave this projection during the company’s inaugural capital markets day.

She said Africa is the final frontier for subscription video-on-demand (SVOD) growth which is why many international players are targeting the continent.

Despite increased competition, Phahle is confident that ShowMax can become the leading streaming service in Africa.

Digital TV Research data shows that Showmax trails Netflix in subscribers, but Phahle is confident they have a competitive edge over their international rivals.

By partnering with Comcast and through its planned products and price offerings, MultiChoice expects a step-change in customer numbers in the future.

“Speaking to affordability and content preferences of African customers, we expect to have three times more customers than initially envisaged,” she said.

To facilitate this growth, MultiChoice is ramping up its investment in its ShowMax platform and local content. It wants to create ten times more local content within ten years.

MultiChoice expects ShowMax to have the same 3 to 5-year J-curve as its global peers in the streaming industry.

“We are aiming to generate revenue of more than $1 billion after 5 years, with a trading profit breakeven target in full-year 2027,” she said.

“We are targeting EBITDA margins of 25% and free cash flow margins of around 20% at scale.”

Phahle said ShowMax aims to become the leading streaming platform in Africa with Showmax 2.0.

Showmax subscriber growth expectations

MCG & Showmax trading profit (TP) over time


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