MultiChoice Group posted a heavy loss for the year ended 31 March 2025, with sharp subscriber declines, foreign exchange losses, and mounting competition pressuring the company’s performance across its African markets. The pay-TV provider lost 1.2 million linear broadcast subscribers over the year, an 8 percent year-on-year fall, leaving it with 14.5 million active customers. Losses were evenly spread between South Africa and the rest of the continent.
“Although reflecting an improvement on FY24 trends, this indicates ongoing broad-based pressure across the group’s entire customer base,” MultiChoice said in a statement to shareholders.
The results come as the company continues negotiations to finalize its sale to France’s Groupe Canal+, which has offered R125 per share, equivalent to about GH₵72.15 at current exchange rates. The bid has helped support MultiChoice’s share price amid worsening financials.
Facing growing pressure from global streaming services and weak consumer demand, MultiChoice blamed “unprecedented headwinds” for the results.
“The past two financial years have been a period of significant financial disruption for economies, corporates and consumers across sub-Saharan Africa due to challenging macroeconomic factors,” the company said. It cited piracy, the rise of digital streaming, and social media as structural changes that have hit its business model.
The group has lost 2.8 million linear subscribers in the past two years, while foreign exchange movements alone erased R10.2 billion, about GH₵3 billion, from revenue due to the depreciation of African currencies against the US dollar.
Despite efforts to raise prices and cut spending, MultiChoice posted a free cash outflow of R500 million, or GH₵288.6 million, reversing a R600 million inflow (GHS346.3 million) recorded in the previous year. The decline was driven by reduced profits and higher lease repayments.
At year-end, the company held R5.1 billion (GH₵2.94 billion) in cash and cash equivalents and had R3 billion (GH₵1.73 billion) available in undrawn borrowing facilities. It also repaid R900 million (GH₵519.5 million) of its term loan using proceeds from the sale of its insurance unit to Sanlam.
The company delivered R3.7 billion (GHS₵2.14 billion) in cost savings, nearly double what it achieved the year before and ahead of its R2.5 billion internal target. Still, trading profit dropped by 49 percent to R4 billion, following a decline of R3.8 billion (GH₵2.19 billion). The drop was driven in part by R2.3 billion (GH₵1.33 billion) in trading losses from Showmax and R5.2 billion (GH₵3 billion) in foreign exchange-related revenue losses.
Total group revenue dropped 9 percent to R50.8 billion (GHS29.32 billion), with subscription revenue down 11 percent. Adjusted core headline earnings, a key metric used by the board, fell to a loss of R800 million (GHS461.7 million), compared with a R1.3 billion profit in the previous year.
There was one bright spot: Showmax saw its subscriber base grow 44 percent year-on-year. However, that was not enough to offset the erosion in linear TV customers.
MultiChoice returned to a positive equity position thanks to cost cuts, currency stabilization, and the gain from its insurance sale. Still, the group’s long-term outlook depends on its ability to compete in digital streaming and manage exposure to volatile African markets.
