MultiChoice Group Limited (MCG) has released its financial results for the year ended 31 March 2024, viewing them as positive despite significant macroeconomic headwinds. The company’s financials reflect a challenging year, with revenue declining by 5% to ZAR56.0 billion, primarily due to foreign exchange pressures and a lower subscriber base. However, the group managed to maintain profitability through cost optimisation and strategic pricing.

Key Highlights

  • Revenue declined by 5% to ZAR56.0 billion, with a 3% organic growth.
  • Operating profit decreased by 30% to ZAR7.1 billion, while trading profit fell by 21% to ZAR7.9 billion.
  • The group achieved significant cost savings of ZAR1.9 billion, exceeding its initial target of ZAR0.8 billion.
  • The number of subscribers declined by 9% to 17.3 million, with a 5% decline in South Africa and a 13% decline in the Rest of Africa.
  • Average revenue per user (ARPU) decreased by 23% to ZAR239, with a 4% decline in South Africa and a 10% decline in the Rest of Africa.

Customer Acquisition and Retention

The company reported a 16% growth in its paying subscriber base from the migrated base at the relaunch of Showmax to year-end. Despite a disciplined approach towards inflation-led pricing, the combination of foreign exchange headwinds and a lower subscriber base resulted in a net decline in group revenues of 5% to ZAR56.0 billion (+3% organic).

Sports Rights and Showmax

The group successfully launched Showmax, SuperSportBet, and Moment during the year, showing strong initial user traction. The commencement of the Showmax investment cycle reduced the group’s trading profit by ZAR1.4 billion. The company also outperformed on cost optimisation once again, delivering ZAR1.9 billion in cost savings against an initial target of ZAR0.8 billion, and tactically reducing set-top box subsidies by ZAR1.5 billion year-on-year.

Conclusion

MultiChoice Group Limited’s financial results for FY24 reflect a challenging year, with revenue declining due to foreign exchange pressures and a lower subscriber base. However, the group maintained profitability through cost optimisation and strategic pricing. The company’s focus on expanding its platform and improving its cost structure positions it well for long-term growth and profitability.

Annual Results Canal + MultiChoice