Multichoice Group, the parent firm of DStv and GOtv, has stated that 243,000 Nigerians ceased utilising its services between April and September 2024 as the country’s macroeconomic and consumer environments deteriorated significantly.
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It stated that customers in Nigeria saw high inflation of more over 30 percent (32.70 percent in September 2024), which was exacerbated by fuel shortages and caused by the cost of food, electricity, and petrol.
The World Bank reports that due to rising inflation, inadequate economic management, and external shocks, the number of impoverished Nigerians increased from 115 million in 2023 to 129 million in 2024.
In its financial filings, which were made public on Tuesday, the firm disclosed that during the six-month period under review, more than 566,000 non-South African subscribers ceased utilising its services. Nigeria and Zambia (298,000) were the main contributors to this reduction.
It stated that “drought-driven power outages of up to 23 hours a day” were the main cause of Zambia’s deterioration. During that time, the firm lost 184,000 South African subscribers.
The pay television network reported that difficult macroeconomic conditions that decreased purchasing power caused its number of active members to drop by 1.8 million to 14.9 million.
Despite this, the firm reported that its revenues increased by 4% year over year to ZAR25.4 billion on an organic basis as a result of new product revenue growth and disciplined inflationary pricing. However, it pointed out that a stronger rand versus the dollar and pressures from foreign exchange on the Rest of Africa division caused its reported revenues to drop by 10%.
“We are making significant progress in resolving the technical insolvency caused by non-cash accounting entries at the conclusion of the previous financial year. We anticipate returning to a positive net equity position by the end of November this year, aided by a number of developments and initiatives. The Group’s liquidity position remains strong, with over ZAR10 billion in total available funds,” says MultiChoice Group CEO Calvo Mawela.
