MultiChoice Group, Africa’s leading pay-TV provider, has reported a significant subscriber drop in Nigeria, where 243,000 customers disconnected from its DStv and GOtv services between April and September 2024.
The company’s latest financial report, released on Tuesday, attributes the decline to soaring inflation and escalating costs for essentials like food, electricity, and petrol, forcing many subscribers to abandon their services.
The subscriber losses in Nigeria, compounded by similar challenges in Zambia, led MultiChoice’s Rest of Africa (RoA) division to lose 566,000 subscribers over the six-month period ending September 30. The group’s overall subscriber base fell by 11% year-on-year, from 16.7 million to 14.9 million active users.
According to MultiChoice, Zambia’s power disruptions and Nigeria’s inflation rate—exceeding 30% over the past year—are key drivers of the decline. Zambia and Nigeria alone accounted for a loss of 298,000 and 243,000 subscribers, respectively, while other markets in the continent saw a marginal dip of 25,000.
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The report also highlighted the financial strain caused by Nigeria’s depreciating currency. MultiChoice’s cash reserves in Nigeria dropped from $39 million to $11 million by the end of September, partly due to currency translation losses and a $21 million write-off following the liquidation of Heritage Bank.
MultiChoice CEO Calvo Mawela described the current operating environment as “the most challenging” the company has faced in nearly 40 years. To manage these conditions, MultiChoice has focused on cost reductions and operational restructuring. Mawela noted that steep currency devaluations have cut company profits by nearly R7 billion over the last 18 months.
Despite these challenges, the CEO expressed confidence that the company is on track to recover, with initiatives underway to improve its financial position and a strong liquidity base of ZAR10 billion.
Earlier this year, MultiChoice raised subscription prices for its DStv and GOtv packages, moving forward with the hike despite a recent tribunal ruling against it.
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