MultiChoice CEO Calvo Mawela upbeat about 2025

MultiChoice faced significant headwinds over the last two years, but chief executive Calvo Mawela is confident that the tide will turn.

In the first six months of the 2025 financial year, MultiChoice’s revenue declined by 10%. However, on an organic basis, it increased by 4%.

This shows the impact of foreign exchange pressures on the ‘Rest of Africa’ business and a stronger rand against the US Dollar.

Mawela explained that unprecedented foreign exchange volatility severely impacted the group’s interim financial results.

“Over the last six months, we faced over R2.3 billion in forex headwinds,” he said in an interview in November 2024.

The company has also faced macroeconomic challenges that weighed on customer growth and moderated overall performance.

In South Africa, poor economic growth, elevated interest rates, and the high cost of living lowered household spending on luxury products like DStv.

Many consumers faced financial pressure, forcing them to cut their DStv subscription or downgrade to a lower bouquet.

Despite these challenges, Mawela said they performed well in weathering the storm and positioning MultiChoice for growth.

“We strongly believe that things will stabilise and that the environment will improve in the coming years,” he said.

He is confident that they have seen the worst out of Nigeria and Zambia, which bodes well for the Rest of Africa business.

He added that they progressed well in their cost-cutting strategy to right-size the business and grow new revenue streams to drive future growth.

Cost-cutting measures delivered R1.3 billion in permanent savings and are on track to reach increased full-year savings of R2.5 billion.

However, the company is not only cutting costs. It is increasing its investment in Showmax to make it competitive in the streaming revolution.

Streaming is gaining momentum across Africa, and MultiChoice aims to become the preferred platform through its Showmax offering.

“We are continuing with our strategy to invest in Showmax. Over the last six months, we spent R1.6 billion to fuel its growth,” he said.

He said they are building a sustainable business by managing the costs while investing in the right areas for future growth.

The company focuses on four strategic priorities to evolve MultiChoice from a traditional pay-TV operator to a sustainable entertainment business.

• Improving profitability and cash generation in the South African business.

• Streamlining the cost base in the Rest of Africa to return this business to profitability.

• Investing in Showmax to establish it as the leading streaming platform on the continent.

• Supporting KingMakers, Moment and DStv Insurance to drive scale.

“By executing these objectives well, MultiChoice will be well-positioned to deliver future growth and create value,” he said.