Pay-TV operator, Multichoice Nigeria generated N277 billion (ZAR9.1 billion) as subscription revenue for the financial year ended March 31, 2023.
This represents a 29% growth in revenue year on year when compared with the N177.5 billion (ZAR7.1 billion) recorded by the company in 2022. The performance of the Nigerian unit helped the Multichoice Group to achieve a 7% growth in revenue to ZAR59.1 billion in the 2023 financial year.
According to Multichoice, the performance of the Nigerian operation was boosted by the increment in subscription prices implemented in April last year and the hosting of the company’s annual TV game show, Big Brother Naija, which usually attracts millions of Nigerian youths. It added that the Rest of Africa’s revenues now contributes 38% to overall group revenues, up from 33% in the prior year.
The Multichoice Group in its financial statement disclosed that it was able to extract the sum of $235 million (N160.7 billion) from Nigeria in the year under review. This was, however, lower than the $240 million it extracted in 2022 due to the weaker naira against the dollar.
“Notwithstanding liquidity constraints in Nigeria, the group managed to extract USD235 million (FY22:USD240m) at an average rate of NGN684:USD (FY22: NGN553:USD) during the year. Cash holdings of ZAR1.9bn (FY22: ZAR2.3bn) held in Nigeria remain exposed to weaker currencies,” the group stated.
The Rest of Africa (RoA) operations of Multichoice, which represents its operating countries in Africa outside South Africa, recorded its first trading profit in the 2023 financial year. According to Multichoice the Rest of Africa’s business generated a positive trading profit of ZAR0.9bn, representing a 4% trading profit margin and a ZAR2.8bn organic improvement from the prior year.
Multichoice said this came as the first positive trading profit recorded since the group was listed in 2019. Aside from the price increment, Multichoice said the strong performance was also boosted by decoder subsidy and marketing investments for the FIFA World Cup. Outside its home country, South Africa, the group said its overall subscriber base was also boosted by the Rest of Africa.
The group added 1.7 million 90-day active subscribers, representing 8% year-on-year growth, to close the year with 23.5 million subscribers. The 90-day subscriber base comprised 14.2 million households (60%) in the Rest of Africa and 9.3 million households (40%) in South Africa.
While the RoA subscription revenue grew by 16% to ZAR20.4 billion in the period under review, Multichoice Nigeria accounted for 44% of the total.