Johannesburg – In a notably challenging macroeconomic landscape, MultiChoice Group (www.MultiChoice.com) has effectively navigated external pressures through focused strategic actions.

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

A strategic approach to inflationary pricing, with increments of 5.7% in South Africa and an average of 31% in local currency across the Rest of Africa, also helped mitigate the effects of subscriber attrition and supported a 1% year-on-year (YoY) organic revenue growth.

“Our performance mirrors the challenges we’ve faced, as well as the resilience of our teams,” remarked Calvo Mawela, CEO of MultiChoice Group.

“While macroeconomic pressures and currency dynamics have influenced our outcomes, our disciplined execution, robust cost management, and investments in long-term growth opportunities position us favorably for what lies ahead.

“We are committed to being Africa’s go-to entertainment platform.

“Our strategy is shaped by industry trends, including technological advancements that prompt shifts in consumer behavior, along with obstacles like escalating piracy, streaming competition, and social media.”

Highlighting the Group’s flexibility in response to changes in the global video entertainment sector, new products and services witnessed significant YoY growth.

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

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

Importantly, the Group restored a positive equity position via a mix of cost savings, currency stabilization, and an accounting gain from selling 60% of its insurance business shares (NMSIS) to Sanlam.

The decline rate 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 decline was primarily due to a challenging consumer environment across various markets.

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

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

Trading profit grew by 20% YoY before considering the Showmax investment, currency decline, and M&A activities. After including Showmax’s trading losses and ZAR5.2 billion in foreign currency revenue declines, partially offset by ZAR3.7 billion in cost savings, the reported trading profit fell to ZAR4.0 billion.

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

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

The Group experienced a free cash outflow of ZAR0.5 billion, due to reduced profitability and increased lease repayments. This was somewhat balanced by improved working capital management and a 29% YoY decrease in capital expenditures.

At year-end, the Group retained ZAR5.1 billion in cash and cash equivalents and had 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 this year, increasing its total local content library to over 91,470 hours, solidifying its status as Africa’s largest original content producer.

The flagship reality series, Big Brother Mzansi, broke records with 3.8 million views for its season finale, amassing 293 million votes. Similarly, Big Brother Naija in Nigeria continued to draw substantial viewership in its ninth season.

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

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

SuperSport Schools also transformed 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 new content.

focused on subscriber retention and win-backs, identifying substantial growth opportunities, while streamlining 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 cost, and reduced the price of its DStv ADD Movies package from R79 to R49.

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

In response to a challenging operating environment, implemented inflation-linked price adjustments and continued to enforce cost-containment measures by reducing subsidies, marketing, content, and transmission costs.

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

As a start-up business, focused on improving customer affordability and reach through distribution partnerships, refining customer sign-up processes, enhancing platform development, and expanding payment options.

Despite slower subscriber growth compared to initial targets, Showmax achieved impressive 44% growth in active paying subscribers and gained market share in a regional streaming market with subdued growth.

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

New service line revenues rose to an impressive 42% of total revenue, bolstered by innovative solutions that enhance security and interoperability in the transportation sector.

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

SuperSportBet, the South African platform launched in 2024, experienced early success with a notable rise in monthly net gaming revenue throughout the year.

Now operational in 44 African nations, Moment continues its brisk expansion, achieving total payment volumes (TPV) of USD635 million, a sevenfold increase from FY24.

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

Looking Ahead

The Group remains dedicated to establishing a sustainable, long-term future by concentrating on key strategic priorities. Three priorities stand out for the upcoming year:

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

Through its topline initiatives and cash flow management strategies, the Group aims to achieve margins for MultiChoice SA in the mid-twenties range, return MultiChoice Africa to profitability, and limit funding while minimizing trading losses in Showmax.

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