₦airaland Forum

Johannesburg, South Africa – November 12, 2024 – South African pay-TV giant MultiChoice Group (MCGJ.J) reported a massive 99% plunge in half-year profits on Tuesday, as a decline in subscriptions and challenging economic conditions across its African footprint took a heavy toll.

The company, known for its DStv satellite television service across sub-Saharan Africa, revealed a 5% drop in subscriptions in its home market of South Africa and a steeper 15% decline in the rest of Africa. This performance was attributed to weakening local currencies, particularly in Nigeria, where consumer spending has been constrained. Additionally, power disruptions in Zambia further hampered operations.

“MultiChoice is caught between a rock and a hard place,” said Peter Takaendesa, Head of Equities at Mergence Investment Managers. “They have to pass on inflation costs to consumers while aggressively cutting expenses to protect their core business.”

The company’s adjusted core headline earnings per share, a key measure of underlying profitability, plummeted to a mere 2 cents per share for the six months ending September 30th, compared to 356 cents per share a year earlier.

However, a potential lifeline has emerged. In April, Canal+, a subsidiary of French media giant Vivendi (VIV.PA), made a formal offer to acquire the remaining shares of MultiChoice that it does not already own. This offer, valued at 125 rand per share or roughly $1.94 billion, has been welcomed by investors.

“The Canal+ offer is unlikely to be withdrawn,” Takaendesa stated to Reuters. “They are likely taking a long-term view of this investment.”

Given the terms of the ongoing cooperation agreement with Canal+, MultiChoice did not declare a dividend for this period.

FULL STORY: https://theafricadailypost.com/320134/regions/southern-africa/multichoice-profit-tumbles-99-as-subscriptions-slide-in-africa/

Na to pack up and leave Nigeria like many other companies have done, right? Multichoice has been in Nigeria since 1986, almost 40 years be that.

My GOTV hasn't been working for the past three weeks after subscribing few days earlier. Some channels wiped out and I tried to scan the entire channels as a new subscriber. Up till now no signal.
Omo goodbye to GOTV sha. That's the end of subscribing for the useless pay TV.

Nonsense

Only pay per view will rescue the company.

immortalcrown:
Only pay per view will rescue the company.

An entire nation... Pay per view only? Are you people even serious with these una kwekwe pronouncements ?

Kobojunkie:
An entire nation... Pay per view only? Are you people even serious with these una kwekwe pronouncements ?

What exactly do you mean?

I now understand why Bright Echefu hurriedly launched Luft TV

christejames:
I now understand why Bright Echefu hurriedly launched Luft TV

Very smart and shrewd business man but my issue is if he follows the same business model that multichoice used , he will face same issues

If multichoice goes , a lot will go. Bbn , the sponsorships , nollywood will be hit , Nigeria music scene etc