MultiChoice releases mixed results

MultiChoice experienced a decline in revenue but saw a significant increase in profit for the year and earnings per share. It also delivered substantial cost savings.

This was revealed in MultiChoice’s consolidated financial statements for the year ended 31 March 2025, released on Wednesday.

MultiChoice described the macroeconomic environment in which it traded as ‘exceptionally challenging, saying it faced numerous headwinds.

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

MultiChoice stated that these factors have materially impacted the overall performance of the group, as reflected in its financial results.

Although there was a significant decline in DStv subscribers over the last year, the rate of subscriber decline has decelerated.

The active linear pay-TV subscriber base of 14.5m reflects a decline of 8% compared to 11% last year. The pressure was mainly due to a weak consumer environment across markets.

To limit the impact of these factors, it significantly cut costs. Over the past year, it delivered R3.7 billion in cost savings, exceeding the revised target of R2.5 billion.

DStv price increases of 5.7% in South Africa and an average of 31% in local currency in Rest of Africa also helped to mitigate the impact of subscriber losses.

MultiChoice CEO Calvo Mawela said the performance reflects the challenges they’ve faced and the resilience of their teams.

He highlighted that macroeconomic pressures and currency volatility have weighed on MultiChoice’s results.

“However, our disciplined execution, cost management, and investment in new long-term growth opportunities position us well for the future,” he said.

Mawela highlighted that new products and services in the MultiChoice stable delivered strong annual growth.

Revenue from DStv Internet grew by 85%, KingMakers by 76% in constant currency, and DStv Stream by 48%. Showmax active paying customers increased by 44%. 

The company returned to a positive equity position through a combination of cost savings and the accounting gain on the sale of 60% of its insurance business (NMSIS) to Sanlam.

He said, despite the challenging year, they remain focused on being Africa’s entertainment platform of choice.

MultiChoice financial overview

On an organic basis, revenues increased by 1% year-on-year, driven by pricing and new product growth. On a reported basis, revenues declined by 9% to R50.8 billion.

The revenue decline was primarily due to an 11% drop in subscription revenue, the impact of currency headwinds, and selling a stake in the insurance business.

Trading profit increased by 20% year-on-year, before accounting for the investment in Showmax, the impact of currency weakness, and mergers and acquisition activity.

After incorporating Showmax’s trading losses and R5.2 billion in foreign currency revenue losses, trading profit on a reported basis declined to R4.0 billion.

MultiChoice recorded a free cash outflow of R500 million, due to lower profitability and higher lease repayments due to timing.

This was partly offset by improved working capital management and a 29% year-on-year reduction in capital expenditure.

At year-end, MultiChoice held R5.1 billion in cash and cash equivalents and had access to R3.0 billion in undrawn general borrowing facilities.

MultiChoice said it remains focused on building a sustainable, long-term future by executing against its key strategic priorities.

These include stabilising the topline in the video businesses, continuing to drive efficiencies in the company, and closing the Canal+ deal.

Management has set a cost-saving target of R2.0 billion for the next financial year in an ongoing effort to reset the business for a shifting trading environment.