MultiChoice Faces Subscriber Decline and Financial Pressure in FY25
The company described the current environment as a “perfect storm” of adverse market conditions that have significantly impacted its operations across Africa.
MultiChoice Group is navigating a challenging period marked by declining subscriber numbers, macroeconomic pressures, and financial headwinds, according to its Integrated Annual Report for the year ended 31 March 2025. The company described the current environment as a “perfect storm” of adverse market conditions that have significantly impacted its operations across Africa.
The group reported a notable reduction in its active subscriber base, falling from 15.7 million in FY24 to 14.5 million at the end of March 2025. In South Africa, the subscriber base decreased by 8% (589,000 households) to 7.0 million, largely due to persistently high unemployment rates of 32%–33% and ongoing pressure on disposable income. The Rest of Africa (RoA) segment also faced a 7% decline, dropping to 7.5 million active subscribers. High inflation in key markets, including Nigeria, Angola, Ghana, and Malawi, forced consumers to prioritize essential spending over entertainment. Severe power outages, particularly in Zambia where electricity interruptions exceeded 20 hours daily, further contributed to subscriber churn.
The financial results reflect these challenges. Group revenue declined from ZAR 56.0 billion to ZAR 50.8 billion. While the RoA segment achieved 3% organic growth, reported revenue fell 23% due to sharp currency devaluations, particularly the Nigerian naira. Trading profit dropped by 49% to ZAR 4.0 billion, and the company recorded a core headline loss of ZAR 0.7 billion, reversing from a ZAR 2.2 billion profit the previous year. Although shareholder equity returned to a positive ZAR 1.6 billion in FY25, the group’s leverage ratio rose to 2.26x, highlighting solvency pressures. To mitigate a ZAR 3.0 billion foreign exchange impact, MultiChoice intensified cost-saving measures, achieving ZAR 3.7 billion in reductions during the year.
In response to these pressures, MultiChoice is pursuing strategic shifts focused on streaming and potential consolidation. Showmax, the company’s streaming platform, saw a 44% increase in paying subscribers year-on-year, although growth fell short of internal targets. A significant development was Canal+’s mandatory offer to acquire the remaining shares of MultiChoice at R125 per share, which the board believes would strengthen the company’s long-term sustainability and growth prospects. The long-stop date for this transaction has been extended to 8 October 2025.
Amidst these challenges, MultiChoice is navigating a complex operating environment while seeking to balance cost management, subscriber retention, and strategic transformation toward streaming and potential consolidation in the African media market.
