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Monday, July 28, 2025

MultiChoice Reports Headline Loss as DStv Subscriber Numbers Fall

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Africa’s leading pay-TV broadcaster, MultiChoice Group, has reported a headline loss of R800 million for the financial year ending March 31, 2025, marking a sharp reversal from the R1.3 billion profit posted in the previous year.

The decline comes amid significant subscriber losses, currency depreciation, and mounting pressure from streaming competitors.

The company announced that its DStv subscriber base fell by 1.2 million, dropping to 14.5 million customers across the continent.

This decrease in broadcast subscribers — particularly in mass-market segments — contributed to an 11% fall in subscription revenue, dragging total group revenue down by 9% to R50.8 billion, well below analysts’ forecasts.

“The challenging macroeconomic environment — including high inflation, lower disposable incomes, and persistent currency weakness — significantly impacted our core markets,” said Calvo Mawela, CEO of MultiChoice.

The company also revealed that trading profit nearly halved to R4 billion, hit by substantial losses from its revamped streaming platform Showmax (which posted a R2.3 billion loss) and R5.2 billion in foreign exchange losses.

Currency volatility — especially against the U.S. dollar — shaved off over R10 billion in potential top-line revenue, underscoring the pressure on African multinationals operating in weakened currencies.

Rising Competition and the Shift to Streaming

MultiChoice is grappling with increased competition from global streaming giants like Netflix, Amazon Prime, and Disney+, as well as piracy and low-cost local alternatives.

With African consumers tightening their belts, traditional satellite pay-TV services have taken a hit.

However, there are signs of hope. Showmax, MultiChoice’s streaming platform, saw a 44% increase in paying subscribers, buoyed by new local content, English Premier League streaming rights, and its partnership with U.S.-based Comcast.

Strategic Shift and Canal+ Takeover Interest

Despite the poor financials, MultiChoice has reiterated its long-term strategy to diversify beyond traditional broadcasting.

The company is expanding into fintech, insurance, betting, and digital streaming services.

Meanwhile, Canal+, a subsidiary of France’s Groupe Vivendi, has reaffirmed interest in acquiring MultiChoice.

If approved by regulators, the deal could inject much-needed capital and digital expertise into the South African broadcaster.

“We’re navigating one of the toughest periods in our history, but we remain confident in our ability to adapt and grow across digital platforms,” Mawela added.


Key Figures (FY2025):

  • Headline loss: R800 million

  • Total revenue: R50.8 billion (↓9%)

  • Broadcast subscribers: 14.5 million (↓1.2 million)

  • Showmax losses: R2.3 billion

  • Currency losses: R5.2 billion

  • Showmax subscriber growth: +44%


Outlook:
With the pay-TV landscape rapidly evolving, MultiChoice’s future will likely depend on how fast and effectively it can pivot into a digital-first, multi-service business.

Showmax’s traction offers a glimpse of that future — but profitability and platform resilience will be key.

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