MultiChoice Group is navigating a challenging period marked by declining subscriber numbers, macroeconomic pressures, and financial headwinds, according to its Integrated Annual Report for the year ended 31 March 2025. The company described the current environment as a "perfect storm" of adverse market conditions that have significantly impacted its operations across Africa.
The group reported a notable reduction in its active subscriber base, falling from 15.7 million in FY24 to 14.5 million at the end of March 2025. In South Africa, the subscriber base decreased by 8 589,000 households to 7.0 million, largely due to persistently high unemployment rates of 32-33 and ongoing pressure on disposable income. The Rest of Africa RoA segment also faced a 7 decline, dropping to 7.5 million active subscribers. High inflation in key markets, including Nigeria, Angola, Ghana, and Malawi, forced consumers to prioritize essential spending over entertainment. Severe power outages, particularly in Zambia where electricity interruptions exceeded 20 hours daily, further contributed to subscriber churn.
The financial results reflect these challenges. Group revenue declined from ZAR 56.0 billion to ZAR 50.8 billion. While the RoA segment achieved 3 organic growth, reported revenue fell 23 due to sharp currency devaluations, particularly the Nigerian naira. Trading profit dropped by 49 to ZAR 4.0 billion, and the company recorded a core headline loss of ZAR 0.7 billion, reversing from a ZAR 2.2 billion profit the previous year. Although shareholder equity returned to a positive ZAR 1.6 billion in FY25, the group's leverage ratio rose to 2.26x, highlighting solvency pressures. To mitigate a ZAR 3.0 billion foreign exchange impact, MultiChoice intensified cost-saving measures, achieving ZAR 3.7 billion in reductions during the year.
