Johannesburg – In a challenging macroeconomic context, MultiChoice Group (www.MultiChoice.com) has adeptly navigated external obstacles with focused strategic actions.

The Group has realized R3.7 billion in cost savings, exceeding the revised target of ZAR2.5 billion set during the interim phase and nearly doubling the R1.9 billion saved in FY24.

A measured approach to inflationary pricing, with increases of 5.7% in South Africa and an average of 31% in local currency throughout the Rest of Africa, has also mitigated the effects of subscriber losses and facilitated a 1% year-on-year (YoY) organic revenue growth.

“Our results reflect the hurdles we’ve faced and the resilience of our teams,” said Calvo Mawela, CEO of MultiChoice Group.

“While macroeconomic challenges and currency fluctuations have affected our outcomes, our disciplined execution, prudent cost management, and investments in long-term growth opportunities position us well for the future.”

“We are committed to remaining Africa’s preferred entertainment platform.”

“Our strategy is shaped by industry trends, including technological advancements influencing consumer behavior, as well as challenges like escalating piracy, streaming services, and social media.”

Highlighting the Group’s adaptability in the evolving global video entertainment market, new products and services experienced significant YoY growth.

Revenue from DStv Internet soared by 85%, KingMakers by 76% (in constant currency), and DStv Stream by 48%.

Showmax reported a 44% increase in active paying customers YoY.

Notably, the Group returned to a positive equity position thanks to a blend of cost savings, currency stabilization, and an accounting gain from selling 60% of its shares in its insurance business (NMSIS) to Sanlam.

The decline in subscribers has slowed, with the active linear pay-TV subscriber base at 14.5 million, reflecting an 8% decrease compared to 11% (14.9 million) in FY24. This pressure was primarily due to a difficult consumer environment across various markets.

On an organic basis, revenues rose by 1% YoY, bolstered by pricing and new product growth.

Nonetheless, on a reported basis, revenues decreased by 9% YoY to ZAR50.8 billion, mainly due to an 11% drop in subscription revenue, the effects of currency challenges, and the deconsolidation of the NMSIS insurance business from December 2024.

Trading profit increased by 20% YoY prior to accounting for the investment in Showmax, currency weakness, and M&A activities. After factoring in Showmax’s trading losses and ZAR5.2 billion in foreign currency revenue declines, somewhat offset by ZAR3.7 billion in cost savings, the reported trading profit decreased to ZAR4.0 billion.

serves as the board’s key measure of the underlying performance of the business.

The Group recorded a loss of ZAR0.8 billion, attributed to the lower trading profit and hedging losses compared to the prior year’s gains, partially offset by reduced losses from cash repatriation from Nigeria.

The Group encountered a free cash outflow of ZAR0.5 billion, resulting from lower profitability and increased lease repayments due to timing issues. This was partially balanced by improved working capital management and a 29% YoY reduction in capital expenditures.

At year-end, the Group had ZAR5.1 billion in cash and cash equivalents and access to ZAR3.0 billion in undrawn general borrowing facilities.

Local content remains a critical differentiator. The Group added over 5,340 hours of local content during the year, bringing the total local content library to over 91,470 hours, securing its position as Africa’s largest original content producer.

The flagship reality series, Big Brother Mzansi, achieved a record-breaking 3.8 million views for its season finale, garnering 293 million votes. Meanwhile, Big Brother Naija in Nigeria continued to attract substantial viewership in its ninth season.

Sport also plays a vital role in enhancing the Group’s content offerings. SuperSport aired 47,839 hours of live coverage (+7% YoY) and produced 1,029 live events.

Key highlights included the Paris 2024 Olympic Games, EURO 2024 football, three major ICC cricket tournaments, and the SA 20 Season 3.

SuperSport Schools continued to redefine school sports broadcasting.

The app saw a 46% increase in registered users, reaching 1.2 million, while the platform attracted nearly 11 million unique viewers through the app and Channel 216 on DStv, delivering over 50,000 hours of new content.

focused on subscriber retention and win-backs, identifying significant growth opportunities, while optimizing processes and systems to enhance customer experience and operational efficiency.

To improve its value proposition, the business tiered certain channels, reintroduced a second concurrent stream at no additional charge, and reduced the price of its DStv ADD Movies package from R79 to R49.

New strategic partnerships were forged with Capitec, MTN, and PEP to expand market reach.

Given the challenging operating environment, implemented inflation-linked price adjustments and continued cost-containment efforts by reducing subsidies, marketing, content, and transmission costs.

Post year-end, the company piloted weekly subscriptions in Uganda to align subscription periods with customer cash flows.

As a start-up, prioritized enhancing customer affordability and reach through distribution partnerships, refining customer sign-up processes, advancing platform development, and expanding payment options.

Although subscriber growth was slower than initial expectations, Showmax witnessed a robust 44% increase in active paying subscribers and gained market share in a regional streaming market with modest growth.

experienced an 8% increase in revenue YoY on an organic basis (5% reported), enhancing external revenue across all three market segments – Video Entertainment, Gaming, and Connected Transport.

Revenue from new service lines reached an impressive 42% of total revenue, driven by innovative solutions that bolster security and interoperability in the transport sector.

exhibited strong organic growth in sports betting and i-gaming, with BetKing Nigeria gaining considerable traction, especially in its online operations.

SuperSportBet, the South African platform launched in 2024, has shown early success, with significant growth in monthly net gaming revenue throughout the year.

Currently operating in 44 African countries, Moment continues its rapid expansion, achieving total payment volumes (TPV) of USD635 million, a sevenfold increase from FY24.

Moment processed 56% of the Group’s payment volumes, up from just 20% a year earlier, and as of the end of March this year, its annualized payments run rate exceeded USD1 billion.

Looking Ahead

The Group is dedicated to establishing a sustainable, long-term future by focusing on key strategic priorities in the coming year, including:

Management has set a cost-saving target of ZAR2.0 billion for FY26 as part of its ongoing strategy to adapt the business to an evolving trading environment.

Through its topline strategies and cost and cash flow management approaches, the Group aims to achieve margins for MultiChoice SA in the mid-twenties range, restore MultiChoice Africa to profitability, and minimize funding while reducing trading losses in Showmax.

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