MultiChoice results in a nutshell
DStv-owner MultiChoice reported a massive loss for the financial year ended 31 March 2023, despite revenue growth.
MultiChoice’s 2022 profit declined by more than 200% in the previous financial year, swinging from a R2.8 billion profit to a R2.9 billion loss.
The group added 1.7 million 90-day active subscribers, representing 8% year-on-year growth, to close the year on 23.5 million subscribers.
The 90-day subscriber base comprised 14.2 million households (60%) in the Rest of Africa (RoA) and 9.3 million households (40%) in South Africa.
The company’s South Africa segment struggled in the past financial year, with a decline in revenue, trading profit, and monthly average revenue per user (ARPU) for its pay-television offering.
MultiChoice ascribed the decrease in ARPU to its changing mix of subscribers and the lower level of subscriber activity.
While this segment remains its largest by revenue, MultiChoice’s Rest of Africa operations grew significantly in the past financial year.
Revenue from the Rest of Africa segment grew to reach R22.9 billion. The segment also saw an increase in trading profit and subscription fees.
MultiChoice said the revenue represented a 26% year-on-year increase YoY (16% organic) and benefited from the translation of the Rest of Africa US dollar revenues into the South African rand.
MultiChoice CEO Calvo Mawela said the company benefited from a strong performance in the Rest of Africa, that delivered a trading profit for the first time since our listing in 2019.
Users of the DStv app and Showmax services continued to grow as online consumption increased, supported by rising broadband connectivity and more affordable pricing.
The online user base increased by 12% year-on-year, with a 26% growth rate for paying Showmax subscribers.
Showmax Pro, which includes live sport, enjoyed strong growth and doubled its subscriber base in the last financial year.
MultiChoice results summary
| Measure | March 2022 | March 2023 | Percentage change |
|---|---|---|---|
| Group: | |||
| Revenue | R55,240 million | R59,141 million | +7% |
| Profit/loss for the year | R2,884 million | -R2,920 million | – 201% |
| South Africa: | |||
| Revenue | R43,365 million | R41,957 million | -3.25% |
| Trading profit | R11,032 million | R8,483 million | -23.11% |
| Subscription fees | R28,956 million | R28,133 million | -2.84% |
| Rest of Africa: | |||
| Revenue | R18,280 million | R22,945 million | +25.52% |
| Trading profit | -R1,213 million | R898 million | +174.03% |
| Subscription fees | R16,468 million | R20,522 million | +24.62% |
| Pay-TV | |||
| South Africa: Monthly average revenue per user | R269 | R256 | -5% |
| Rest of Africa: 90-day average revenue per user | R120 | R126 | +5% |
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