MultiChoice shareholders have had a dismal few years, with wild share price swings and a deteriorating financial performance.
MultiChoice was unbundled from Naspers and was stable and listed on the Johannesburg Stock Exchange on 27 February 2019.
“The strong leadership team is diverse, experienced and well-positioned to take the company forward,” it said. Africa is one of the fastest-growing continents in terms of GDP and population. Its middle class is rapidly expanding, and video entertainment penetration is still relatively low. Its assets declined to R43.9 billion, while liabilities increased to around R45 billion. This leaves it with a negative equity of R1.07 billion, which means it is technically insolvent.
Since MultiChoice was listed on the JSE in February 2019, it has only delivered an average annual revenue growth of 2.9%. Revenue fell by 5.4% over the last financial year.Over the last two years, MultiChoice has reported two back-to-back losses. It suffered a net loss of R3.5 billion in 2023 and a loss of R4 billion in 2024.South Africa is MultiChoice’s home country and has been the company’s revenue and profit driver since its inception.
In 2024, the most recent period, subscriber numbers in South Africa declined by 5%. It struggled to attract new customers to its DStv platform. MultiChoice South Africa’s trading profits declined from R10.4 billion in 2018 to R8.8 billion in 2024. This is particularly noteworthy as MultiChoice has increased the price of its decoder-based DStv packages every year. Despite the annual price increases, ARPU still declined.
However, in 2024, the segment experienced its first subscriber decline since MultiChoice was listed on the JSE.Similar to the subscriber numbers, MultiChoice Africa did not experience a single period of decline until 2024. However, revenue dropped from R22.6 billion to R19.7 billion over the last year.
It purchased a 20% interest in 2020 for R1.9 billion, followed by a further 29% investment in 2021 for around R4 billion. KingMakers initially reported strong revenue growth. However, in the most recent annual report, its revenue fell from $198 million to $147 million. Through Showmax, it expects to grow its total subscriber base to 50 million users by 2028. This is highly optimistic.
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