MultiChoice CEO Calvo Mawela’s message to shareholders

MultiChoice CEO Calvo Mawela said the last financial year has been full of trials and tribulations, but he is looking forward to a future full of possibilities.

Mawela joined MultiChoice in 2007 as an executive. By 2013, he was appointed to oversee stakeholder and regulatory affairs for MultiChoice South Africa.

Four years later, he ascended to the role of chief executive of MultiChoice South Africa, where he oversaw MultiChoice South Africa and DStv Media Sales.

In October 2018, shortly before MultiChoice Group’s JSE listing, Mawela was appointed as the company’s chief executive officer.

He took the reins as the global pay-TV industry faced significant challenges with changing user preferences and a shift towards streaming services.

Mawela faced the challenging task of steering MultiChoice, and therefore, DStv, through its most difficult period to date.

In his letter to shareholders in the latest MultiChoice annual report, Mawela said the last financial year has been one of trials and tribulations.

“Our business has been tested in ways we could not have predicted, but we remained resolute in confronting obstacles head-on,” he said.

“Our challenges served as a reminder of the importance of adaptability, teamwork and an unwavering commitment to our mission of building Africa’s entertainment platform of choice.”

He said disastrous economic conditions and unfavourable video market dynamics have meant that their video subscription businesses all performed below expectations.

The ongoing cost-of-living crisis has resulted in DStv increasingly being squeezed out of household budgets.

“Against this background, our numbers do not reflect the growth ambitions we set forth at the start of the year,” he said.

“However, they tell a story of perseverance and an organisation determined to endure through turbulent times.”

The plan to build a strong MultiChoice

Mawela said they continue to witness profound changes in the video entertainment industry and the competitive environment in which they operate.

Streaming services are gaining momentum, and global media companies and OTT service providers with significant scale and resources are a particularly big risk.

Companies like Netflix, Amazon Prime Video, YouTube, Disney+ and Apple TV+ are placing at risk the sustainability of traditional broadcasters.

These changes are forcing companies like MultiChoice to embrace change and reinvent themselves to remain relevant.

“We are taking a hard look at what needs to change and are committed to finding sustainable solutions that will position us to meet the needs of an evolving market,” he said.

Mawela said in the year ahead, MultiChoice will be looking to do the following:

• Focus on what is within their control – Inflationary pricing discipline, targeted topline initiatives, focused subsidy and marketing spend, and cash flow management are all critical levers.

• Ensure the cost base is fit for purpose – Continue to drive operational efficiencies as this is critical to managing covenant, solvency and liquidity risks, ensuring long-term sustainability and delivering required returns.

• Drive relentless execution against targets – Regularly review performance against operational targets suitably geared towards customer and shareholder value creation, and help reignite innovation and re-positioning of their service offerings.

• Step-up anti-piracy efforts – Elevate the risk across all business segments, increase investment in countermeasures through Irdeto, benchmark best practices against peers, and institute a dedicated cross-functional anti-piracy forum to measure progress.

• Enhancing workforce capabilities – Providing training and resources to equip our teams with the skills and tools they need to drive performance.

• Strengthening partnerships – Collaborating more effectively with suppliers, customers and stakeholders to foster resilience and stability across our operations.

“These efforts are part of a broader plan to restore our operational and financial performance, and to position MultiChoice for sustainable growth in a rapidly evolving market,” he said.

“Some of these measures will take time to yield their full impact, but early indicators show promise, and we are resolute in staying the course.”

He added that while the road ahead may still present some challenges, it is also full of possibilities.

“We are navigating this chapter with a focus on rebuilding momentum and laying the foundation for a brighter, more resilient future.”

Mawela said they look forward to closing the Canal+ transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice.