MultiChoice Cuts Costs by ZAR 3.7 billion to Weather Subscriber Losses, Currency Turmoil

South Africa-based pay television company Multichoice Group had one of its toughest years, reporting a revenue drop of 9% year-on-year to 50.8 billion rand (ZAR) alongside a 1.2 million dip in subscriber base. The Group’s management took decisive measures to ameliorate the impact of continent-wide macroeconomic volatility, registering (ZAR) 3.7 billion rand in cost savings, nearly double the amount from the same time last year. Implementation of price increments of about 5.7% in South Africa and an average of 31% in local currency for the Rest of Africa also helped in cushioning the blow to support a modest 1% year-on-year organic revenue growth.

However, the headline figure does not relay the heavy dependence on non-recurring gains, including a (ZAR) 3.0 billion ($169 million) accounting profit from selling 60% of its insurance business to Sanlam and temporary currency stabilization. 

CEO Calvo Mawela called the results a sign of "resilience," crediting "disciplined execution" in cost management and long-term investments. 

“Our performance reflects both the challenges we’ve faced and the resilience of our teams. While macroeconomic pressures and currency volatility have weighed on our results, our disciplined execution, cost management, and investment in new long-term growth opportunities position us well for the future,” he said.

The company, being eyed for a takeover by the France-based media conglomerate Canal Plus, navigated an industry being assailed by increased piracy, changing consumer preferences on top of economic headwinds in many of its markets.

Local currency depreciation against the USD in several markets, including Ethiopia, contributed to the 26% weighted average loss in revenue for its Rest of Africa business segment. Forex losses of (ZAR) 5.2 billion ($294 million) and mounting Showmax trading losses of ZAR 2.3 billion ($130 million) halved the Group’s trading profit to ZAR 4.0 billion ($226 million). 

Showmax’s losses rose alongside subscriber growth of 44%, pointing to ambitious, high-burn investments whose return remains uncertain. Meanwhile, the company’s active linear subscriber base dropped by 1.2 million (8%) to 14.5 million, with losses split evenly between South Africa and the rest of the continent. This decline, while an improvement over FY24 trends, reflects ongoing pressure across the company's customer base.

At year-end, MultiChoice held ZAR5.1 billion ($288 million) in cash and cash equivalents and maintained access to ZAR3.0 billion ($169 million) in undrawn general borrowing facilities. The company made an early partial repayment of its ZAR12.0 billion term loan using ZAR0.9 billion ($51 million) in upfront proceeds from the insurance business transaction. 

Despite its financial headwinds, the Group’s emphasis on local content remained strong. It added 5,340 hours of African programming (bringing the total to 91,470 hours), while Big Brother Mzansi drew 3.8 million views for its finale. SuperSport delivered 47,839 hours of live sports, including Euro 2024 and the upcoming Paris Olympics.