MultiChoice Records $45.13m Loss Amid Economic Strain

MultiChoice Group, the South African pay television giant has reported a significant downturn in its financial performance, posting a headline loss of 800m rand ($45.13m) for the financial year ended March 31, 2025.

This marks a sharp reversal from the 1.3bn rand ($73.37m) in headline earnings recorded in the previous year.

The company attributed the full-year loss to what it described as “unprecedented financial pressure” across African economies, which has adversely impacted consumers, businesses, and overall market conditions.

Rising inflation, currency volatility, and weakening consumer spending power in key markets have compounded the operating environment for the media and entertainment group.

“Economic challenges across our operating territories have continued to place substantial pressure on our business,” MultiChoice said in a statement accompanying its results announcement on Wednesday.

“The strain on household incomes and corporate budgets has been particularly acute, leading to reduced subscriber growth and increased operational headwinds.”

The financial results come at a time when MultiChoice is the subject of a takeover interest by France’s Canal+, which has steadily increased its stake in the group. The ongoing corporate activity adds another layer of complexity to the company’s evolving strategy in the face of broader macroeconomic challenges.

Despite the headline loss, MultiChoice noted that it continues to pursue operational efficiency and cost control measures. The company also reaffirmed its commitment to delivering locally relevant content and enhancing digital experiences for its subscribers across Africa.

MultiChoice is widely recognized for its flagship platforms such as DStv and GOtv, which serve millions of households across sub-Saharan Africa. However, in recent quarters, the group has faced intensifying competition from global streaming services and evolving consumer preferences in the digital content space.

In a bid to weather the economic storm in Nigeria, the Pay Tv had continued to increase its tariff prices across board which prompted the Federal Competition and Consumer Protection Commission (FCCPC) to summoned MultiChoice Nigeria over its move to hike subscription rates for DStv and GoTV.

Customers under the pay-TV company recently woke up to a notification of a hike in the subscription fees. The firm in a notice sent to them increased the DStv premium bouquet to N44,500 from the N37,000 price.

It also said 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.

But in the wake of the proposed hike, FCCPC has summoned MultiChoice Nigeria’s chief executive officer to a hearing at the agency’s headquarters on Thursday.

“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,” FCCPC’s Director of Corporate Affairs Ondaje Ijagwu said in a statement on Tuesday evening.

“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.”

Ijagwu said the FCCPC is “deeply concerned” over the pay-TV company’s proposal amid accusations that “MultiChoice applies different pricing strategies in other markets”.

But it 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”.

FCCPC 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”.

Also recently, the Federal High Court in Abuja has dismissed MultiChoice Nigeria Limited’s suit seeking the upholding of its DStv and GOtv price increases in Nigeria.

Justice James Omotosho passed the judgment, saying that the pay TV’s suit was an “abuse of court process”.

Previously, Omotosho had issued an interim order restraining the FCCPC from taking “any administrative steps” against MultiChoice Nigeria Limited following its announcement of price increases for DStv and GOtv.

The order was granted after MultiChoice’s lawyer, Moyosore J. Onigbanjo (SAN), in case number FHC/ABJ/CS/379/2025, complained that, despite ongoing litigation, the FCCPC continued to send cease and desist letters threatening further sanctions.

MultiChoice Records $45.13m Loss Amid Economic Strain is first published on The Whistler Newspaper