Brands/Products
Weak Naira Impacts Multichoice Subscription Revenue
By Adedapo Adesanya
MultiChoice Group, owner of DSTv and GOTv, saw its subscription revenue grow by 2 per cent on an organic basis but on a reported basis, subscription revenue declined by 7 per cent due to a weaker Nigerian Naira, which affected the disposable incomes of consumers.
In a statement shared on Wednesday, the South African firm delivered a 26 per cent trading profit margin in its home country, while increasing trading profit in the Rest of Africa by 4 per cent, despite very challenging macro-economic conditions.
The active subscriber base for the company declined to 8.1 million, but it claimed effective retention efforts contributed to an improved subscriber mix.
The firm said overall active subscribers declined by 9 per cent, mainly due to a 13 per cent decline in the Rest of Africa business, with Nigeria, Angola and Zambia most affected, while the South African business was more resilient, declining by only 5 per cent.
Given the challenging consumer environment, Multichoice Group’s revenue increased by 3 per cent on an organic basis. However, due to weaker local currencies and consumer pressure, reported group revenue declined by 5 per cent to 56.0 billion Rand (ZAR)
The group’s trading profit across its verticals increased 24 per cent on an organic basis, despite the additional 1.4 billion Rand investment in Showmax to drive future growth.
“After factoring in the ZAR4.5bn impact related to foreign exchange weakness, reported trading profit declined by 21% to ZAR7.9bn,” the company said.
The company said its business in the Rest of the African market faced the toughest macro-economic conditions in its core markets with high, double-digit inflation and extreme depreciation of local currencies, (especially in Nigeria, Angola, Kenya and Zambia) which impacted Dollar revenues by 32 per cent.
In January this year, its fintech arm, Moment, began processing payments for DSTv, reaching a milestone of processing $85 million in payments in early March 2024.
So far, Moment has processed local and cross-border card payments in 44 Showmax markets and is already accounting for more than 20 per cent of Group’s payment volumes. It also joined real-time payment networks in 18 countries, including South Africa, and is currently piloting instant payment and account activation for DSTv.
The business raised an additional $22 million of funding, with MultiChoice contributing $8 million. As a result, Moment is now valued at $82 million and MultiChoice owns a 26 per cent stake.
The linear video entertainment business remains the mainstay of the group’s operations and provides a valuable base from which to expand its service offerings.
The group’s new streaming, interactive entertainment, fintech and connectivity services are having a positive impact on the business, and more importantly, on the lives of its customers.
“Going forward, the group will focus its efforts on scaling Showmax, Moment, and SuperSportBet, as well as on driving growth in insurance (NMSIS), DStv Internet and DStv Stream,” the statement added.
Speaking on the result, Mr Calvo Mawela, MultiChoice Group CEO said, “Four years after setting out a clear strategy of building Africa’s entertainment platform of choice and investing in services to support a broader ecosystem, our three core segments are now fully operational: video entertainment, interactive entertainment and fintech.
“Our focus now shifts to building on these solid foundations to drive growth in these new areas, and on further enhancing business efficiency across our operations.”
“While we are not alone in feeling the challenges of a weak consumer environment, I am proud of the speed and effectiveness of the team in implementing strategic actions to retain customers, safeguard cash generation and drive cost savings which surpassed our targets,” he added.
By Aduragbemi Omiyale
The Ecobank Pan African Centre (EPAC) in Lagos, venue of the ongoing 2025 Design and Innovation Exhibition, is bubbling with activities as top young innovators from across the country are showcasing their arts.
The event, running from Tuesday, February 25 to Sunday, March 2, showcases the immense potential within Nigeria’s manufacturing and creative industries.
The exhibition, themed Building a Made-in-Nigeria Brand, aims to emphasize the creativity, innovation, and craftsmanship of Nigerian designers while highlighting the importance of industrialization and export.
It also reflects a commitment to developing a sustainable industrial ecosystem that supports local talent and fosters economic growth across Africa. The exhibition is featuring 58 designers, including collaborations between manufacturers and designers, offering a glimpse into the future of Nigerian design.
The Minister of Art, Culture, Tourism, and the Creative Economy, Ms Hannatu Musa Musawa, who attended the programme, stressed the importance of strengthening the synergy between Nigerian creativity and manufacturing.
“By leveraging our country’s rich creative resources, we can modernize products, promote locally-made furniture, and build stronger economic connections,” Ms Musawa said, reaffirming the federal government’s support for such initiatives.
The Managing Director and Regional Executive of Ecobank Nigeria, Mr Bolaji Lawal, represented the Head of SME, Partnerships, and Collaboration at Ecobank, Omoboye Odu, said, “The success of SMEs is key to transforming Nigeria’s economy, and we recognize the importance of collaborating with the right partners. Titi Ogufere and Design Week Lagos are the perfect fit for us to help elevate Nigerian creatives and provide a platform to scale their businesses.”
On her part, the founder of Design Week Lagos, Ms Titi Ogufere, said, “This exhibition is a testament to the talent and hard work happening in Nigeria’s creative industries.
“We’re here to celebrate and showcase the potential of our local designers and manufacturers. The global design industry offers immense opportunities, and with more support, Nigerian designers can truly thrive on the world stage.
“We have a wealth of untapped creative potential in Nigeria. It’s time for us to shift focus from foreign markets and showcase what we can do right here at home. The global furniture market alone is valued at over $700 billion, and Nigerian designers can carve out a significant share of that.”
Leading pay television service provider, MultiChoice Nigeria, plans to offer a support package for DStv and GOtv subscribers.
In a message to subscribers on Monday, the company stated that starting from March 1, 2025, the new tariffs would apply to DStv and GOtv packages.
According to the company, DStv and GOtv subscribers who renew their subscriptions before the expiration date will be exempt from the new rates for a specified time as a reward for their loyalty.
Additionally, subscribers on both platforms can take advantage of extra benefits through the Step Up offer, which began in January and will continue until March 31.
The Step Up offer expands access to premium content by enabling both active and disconnected DStv and GOtv subscribers to enjoy content beyond their current package through an automatic upgrade to a higher package on payment for a package above their current subscription.
As part of the palliative package, MultiChoice will announce a reduction in the subscription for Showmax, its streaming service, on February 28. This aims to provide customers with more affordable access to live sports, movies, and general entertainment.
The latest price review puts the cost of the DStv Compact bouquet N19,000 and the Compact Plus at N30,000. DStv Premium subscription will rise to N44,500.
Similarly, GOtv Supa customers will henceforth pay N16,800, while those on Supa will pay N11,400. The tariff on GOtv Max moves to N8,500, while that of GOtv Jinja moves to N3,900.
These adjustments come as MultiChoice seeks to balance operational costs with continued access to premium entertainment for its subscribers.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria over its move to hike subscription rates for DStv and GoTV services.
The call came as the broadcaster hiked its DStv premium bouquet to N44,500 from the N37,000 price, subscribers on the Compact+ would start paying N30,000 as against the current fee of N25,000 among others.
According to MultiChoice, the new rates take effect from March 1, 2025.
Now, the consumer rights agency has stepped in and summoned MultiChoice Nigeria and its chief executive to a hearing at the agency’s headquarters on Thursday, February 27.
According to a statement signed by FCCPC’s Director of Corporate Affairs, Mr Ondaje Ijagwu, it is deeply concerned over the pay-TV company’s proposal amid accusations that MultiChoice applies different pricing strategies in other markets.
“The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to explain its proposed subscription price increase, set to take effect on March 1, 2025,” a part of the statement on Tuesday evening disclosed.
“Exercising its mandate under Sections 32 and 33 of the FCCPA, the FCCPC directed the Chief Executive Officer of MultiChoice Nigeria to attend an investigative hearing at the Commission’s headquarters on Thursday, February 27, 2025.
“This action follows MultiChoice’s formal notification of the price adjustment, which raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-TV industry,” it added.
The FCCPC also promised to “impose regulatory penalties, sanctions, or other corrective measures” on MultiChoice should it “fail to provide satisfactory explanations or be found in violation of fair market principles.”
The agency said this is to “protect Nigerian consumers” and that is it already “engaging the sector regulator and other relevant agencies to ensure fair competition and consumer protection within Nigeria’s broadcasting and digital subscription landscape”.
Multichoice decision to hike its prices comes amid inflationary challenges in core markets.
In Nigeria, a sharp decline in the Naira led to a 32 per cent decline in its Dollar revenue in 2024.
This is as it faced a broader 9 per cent decline in total active subscribers across Africa with subscriber numbers dropping by 13 per cent in Nigeria, Angola, Kenya, and Zambia.
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