MultiChoice Returns to Profit as Forex Losses Ease, Digital Services Surge

Africa’s leading pay-TV provider, MultiChoice, has bounced back to profitability, posting an after-tax profit of 1.8 billion rand for the fiscal year, a strong recovery from the 4.1 billion rand loss recorded in the previous year. The turnaround was driven largely by a significant reduction in foreign exchange losses, which fell from 5.6 billion rand to 975 million rand.

Despite the positive bottom line, the company faced headwinds. Group revenue declined by 9% to approximately 50 billion rand, as subscriber numbers dropped by 8%, equating to a loss of 1.2 million customers. Management attributed the decline to economic pressures across key markets.

In response, MultiChoice implemented cost-cutting measures that saved the company 3.7 billion rand over the year, helping to stabilise its financial footing.

Operational performance varied across divisions. Trading profit fell nearly 49% to 4 billion rand, largely due to startup losses at Showmax—its streaming platform—and ongoing currency volatility. Nonetheless, digital services showed impressive growth: DStv Internet revenue jumped 85%, KingMakers (its sports betting arm) rose 76%, and DStv Stream grew 48%. Showmax also saw a 44% increase in paying subscribers.

CEO Calvo Mawela acknowledged the challenging macroeconomic environment, currency risks, piracy, and stiff competition from global streaming services. However, he reaffirmed MultiChoice’s commitment to long-term growth through disciplined cost control and strategic investment in digital platforms.