Johannesburg – In a notably challenging macroeconomic landscape, MultiChoice Group (www.MultiChoice.com) has adeptly navigated external hurdles through focused strategic initiatives.

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

A measured approach to inflationary pricing, featuring increases of 5.7% in South Africa and an average of 31% in local currency across the Rest of Africa, also aided in mitigating the effects of subscriber losses while supporting a 1% year-on-year (YoY) organic revenue growth.

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

“While macroeconomic challenges and currency variations have affected our outcomes, our disciplined approach, effective cost management, and commitment to long-term growth initiatives position us well for the future.

“We are devoted to being Africa’s preferred entertainment platform.

“Our strategy is shaped by industry trends, including technological advancements that drive changes in consumer behavior, alongside issues such as rising piracy, competition from streaming services, and social media.”

Highlighting the Group’s adaptability in the evolving global video entertainment landscape, new products and services exhibited impressive YoY growth.

Revenue from DStv Internet surged by 85%, KingMakers saw a 76% increase (in constant currency), and DStv Stream experienced a 48% rise.

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

Importantly, the Group returned to a positive equity position through a mix of cost savings, currency stabilization, and an accounting gain from divesting 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, representing an 8% decrease compared to 11% (14.9 million) in FY24. This pressure was largely due to a tough consumer context across various markets.

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

However, on a reported basis, revenues decreased by 9% YoY to ZAR50.8 billion, primarily as a result of an 11% decline in subscription revenue, currency fluctuations, and the deconsolidation of the NMSIS insurance business effective December 2024.

Trading profit grew by 20% YoY before accounting for investments in Showmax, currency weaknesses, and merger & acquisition activities. After incorporating Showmax’s trading losses and a ZAR5.2 billion decrease in foreign currency revenue, partially offset by ZAR3.7 billion in cost savings, the reported trading profit fell to ZAR4.0 billion.

serve as the board’s gauge of the underlying business performance.

The Group reported a loss of ZAR0.8 billion, driven by lower trading profits and hedging losses compared to prior year gains, slightly alleviated by reduced losses from cash repatriation from Nigeria.

The Group recorded a free cash outflow of ZAR0.5 billion, linked to lower profitability and escalating lease repayments due to timing. This was partly countered by enhanced working capital management and a 29% YoY reduction in capital spending.

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

Local content remains a crucial differentiator. Over the year, the Group added more than 5,340 hours of local content, bringing its total local content library to over 91,470 hours, reinforcing its status as Africa’s largest original content creator.

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

Sports also play a vital role in enriching the Group’s content offerings. SuperSport aired 47,839 hours of live coverage (+7% YoY) and hosted 1,029 live events.

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

SuperSport Schools continued to transform school sports broadcasting.

Its app experienced a 46% growth in registered users, reaching 1.2 million, while the platform attracted nearly 11 million unique viewers via the app and Channel 216 on DStv, delivering over 50,000 hours of fresh content.

focused on retaining and winning back subscribers, targeting substantial growth opportunities while enhancing processes and systems to improve customer experience and operational efficiency.

To enhance its value proposition, the business tiered certain channels, reinstated a second concurrent stream at no extra charge, and decreased the price of the DStv ADD Movies package from R79 to R49.

Additionally, it established new strategic partnerships with Capitec, MTN, and PEP to expand its market presence.

In light of a challenging operating environment, applied inflation-linked price adjustments and sustained its cost-containment strategies by reducing subsidies, marketing, content, and transmission expenses.

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

As a start-up, aimed to improve customer affordability and accessibility through distribution partnerships, refining the customer sign-up process, advancing platform development, and diversifying payment options.

Although subscriber growth was slower than initial predictions, Showmax attained a robust 44% growth in active paying subscribers, capturing market share in a regional streaming landscape facing sluggish growth.

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

Revenues from new service lines constituted an impressive 42% of total revenue, driven by innovative solutions improving security and interoperability in the transportation industry.

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

SuperSportBet, the South African platform launched in 2024, has seen early success with a marked increase in monthly net gaming revenue throughout the year.

Now operational in 44 African countries, Moment continues to expand rapidly, amassing total payment volumes (TPV) of USD635 million, a sevenfold increase from FY24.

Moment processed 56% of the Group’s payment volumes, compared to only 20% a year prior, and as of the end of March this year, its annualized payments run rate exceeded USD1 billion.

Looking Ahead

The Group is committed to establishing a sustainable, long-term future by concentrating on key strategic priorities. In the coming year, three priorities stand out:

Management has set a cost-saving target of ZAR2.0 billion for FY26 as part of its ongoing efforts to adjust the business to a transforming trading landscape.

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

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