Multichoice Nigeria, a leading pay-TV operator, has generated N277 billion (ZAR9.1 billion) in subscription revenue for the financial year ending on March 31, 2023.
This means the company’s revenue witnessed a 29% growth compared to the N177.5 billion (ZAR7.1 billion) recorded in the previous year. This has contributed very significantly to the Multichoice Group’s overall revenue growth of 7%, amounting to ZAR59.1 billion.
Speaking on this feat, the group stated, “Notwithstanding liquidity constraints in Nigeria, the group managed to extract USD235 million (FY22:USD240m) at an average rate of NGN684:USD (FY22: NGN553:USD) during the year. Cash holdings of ZAR1.9bn (FY22: ZAR2.3bn) held in Nigeria remain exposed to weaker currencies.”
Multichoice entered the Nigerian market as a joint venture, offering a single analogue bouquet comprising six channels. Since then, it has established itself as a prominent provider of sports, film, and music content, serving as a gateway to the global entertainment landscape for countless Nigerians. With its widely popular pay-TV services, DStv and GOtv, MultiChoice offers a diverse range of content options, becoming a trusted source for Nigerian viewers seeking a rich and varied television experience.
Read more: NBC fines Multichoice and others, 5 million naira for televising the BBC banditry report
BB Naija and price increase responsible for Multichoice’s earning
Multichoice attributes the outstanding performance of its Nigerian unit to two key factors. Firstly, the company implemented a subscription price increase in April of the preceding year, which played a substantial role in driving revenue growth.
Secondly, the hosting of its annual TV game show, Big Brother Naija, which garners immense popularity among Nigerian youths, further fueled the positive financial results. Notably, the Rest of Africa’s revenues now account for 38% of the Multichoice Group’s total revenue, marking an increase from 33% in the previous year.
During the year under review, the Multichoice Group disclosed that it raked in $235 million (N160.7 billion) from Nigeria. This figure was slightly lower than the $240 million revenue in 2022 due to the depreciation of the naira against the dollar.
According to a report by TechNext, MultiChoice Nigeria announced another price increase for its DStv and GOtv services. The new prices took effect from May 1, 2023. This comes one year after a previous price adjustment in April 2022. The company has stated that the price hike, ranging from 16.3% to 18.6%, is a result of the numerous economic challenges it faces.
Going by the new price regime, beginning from May 1, subscribers on its DSTV Premium package will pay N24,500, an increase of 16.7% from the N21,000 they currently pay. The Compact+ package will cost N14,250 monthly, a 16.5% increase.
Rest of Africa’s performance
In a significant development, Multichoice’s Rest of Africa (RoA) operations, representing the company’s operating countries in Africa excluding South Africa, achieved its first trading profit during the 2023 financial year. The RoA business generated a positive trading profit of ZAR0.9 billion, representing a 4% trading profit margin and a ZAR2.8 billion organic improvement from the previous year.
This marked the first positive trading profit recorded since Multichoice’s listing in 2019. Apart from the price increment, the company attributed this strong performance to decoder subsidies and marketing investments for the FIFA World Cup.
Read more: MultiChoice launches Moment to expand payment infrastructure for Africans
The Rest of Africa’s robust performance also contributed to an increase in Multichoice’s overall subscriber base, with 1.7 million 90-day active subscribers added, representing an 8% year-on-year growth.
Per the group’s complete financial statement, RoA’s business generated a positive trading profit of 0.90 billion rands, a 4% trading profit margin, and a 2.8 billion rands organic improvement from the year before. As a result, the company closed the year with a total of 23.5 million subscribers, with 14.2 million households (60%) in the Rest of Africa and 9.3 million households (40%) in South Africa.
While the RoA subscription revenue grew by 16% to ZAR20.4 billion during the period under review, Multichoice Nigeria accounted for 44% of the total revenue.
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