MultiChoice Loses Over 1 Million Subscribers as Profits Drop Sharply
MultiChoice Group, the company behind DStv and GOtv, has reported a big drop in its number of subscribers and profits. Over the past year, the company lost 1.2 million active subscribers, bringing its total down to 14.5 million. This is an 8% decrease compared to the previous year. The company shared these numbers on Wednesday when it released its financial results for the year ending on March 31, 2025.
Revenue and Profits Fall
MultiChoice’s total revenue dropped by 9% to $2.8 billion (R50.8 billion). The main reason for this decline was an 11% decrease in money earned from subscriptions. The company’s trading profit (a measure of its earnings before certain costs) also fell sharply by 49% to $255.7 million (R4 billion). A big part of this loss came from its streaming service, Showmax, which lost an extra $129.8 million (R2.3 billion) compared to last year.
Other factors hurting MultiChoice’s finances include:
Foreign currency losses: Due to weak African currencies, the company lost $293.5 million (R5.2 billion).
Cost savings: To reduce losses, MultiChoice cut costs by $208.8 million (R3.7 billion), which helped balance some of the damage.
Core earnings loss: The company reported an adjusted core loss of $45.1 million (R800 million).
Over the last two years, MultiChoice has lost a total of 2.8 million subscribers. The weakening of African currencies against the US dollar has also cost the company $576.5 million (R10.2 billion).
Why Are Subscribers Leaving?
MultiChoice told investors that while the situation is slightly better than last year, the company is still facing challenges across all its markets. Some of the main reasons for the decline include:
Economic struggles: Many people in Africa have less money to spend due to high inflation and economic difficulties.
Piracy: Illegal streaming and sharing of content is hurting sales.
Competition from streaming services: Rivals like Netflix are taking customers away from DStv and GOtv.
Investment in Showmax: MultiChoice is spending a lot of money to grow its own streaming service, which is cutting into profits for now.
Price Increases in Nigeria
To cope with rising costs, MultiChoice Nigeria recently announced that it will increase DStv and GOtv subscription prices by 16% starting May 1st.
Possible Sale to Canal+
At the same time, MultiChoice is in talks to sell its business to French company Groupe Canal+ for $3 billion. This deal could help the company stabilize its finances.
Showmax: A Big Loss Now, But Hope for the Future
Showmax, MultiChoice’s streaming platform, is still losing money—$146 million (R2.6 billion) in the past year alone. However, the number of Showmax subscribers grew by 44% in the last year, and the company believes it will become a major player in African streaming in the future.
Trying to Recover
MultiChoice has taken steps to save money, including cutting costs and raising prices. The company says it is working hard to overcome these challenges and hopes for better results in the future.
MultiChoice is facing tough times with fewer subscribers, currency problems, and strong competition. While its investment in Showmax is costly now, the company believes it will pay off later. Meanwhile, customers may see higher prices as MultiChoice tries to stay profitable.
