MultiChoice Group, Africa’s largest pay-TV operator and parent company of DStv and GOtv, has reported a staggering loss of 2.8 million subscribers across its sub-Saharan Africa markets, highlighting growing economic strain and shifting consumer preferences in the digital entertainment landscape.
According to the company’s financial results for the fiscal year ending March 31, 2025 (FY25), released on the Johannesburg Stock Exchange, the company’s subscriber base shrank by 1.2 million year-on-year (YoY), reducing its active linear subscribers to 14.5 million. This figure includes a near-equal loss from both the South African and rest-of-Africa markets, signaling a continent-wide trend of cord-cutting and consumer downgrades.
The report attributes the decline primarily to deteriorating macroeconomic conditions, foreign exchange pressures, and the rising cost of living across African economies. MultiChoice disclosed that the weakening of local currencies against the U.S. dollar inflicted a R10.2 billion loss on its topline revenue, emphasizing the steep cost of operating in volatile monetary environments.
The group’s total revenue fell by R5.2 billion (approximately 9%) to R50.8 billion compared to the previous year. Subscription revenue took the hardest hit, dropping by 11% YoY, largely driven by subscriber churn, exchange rate losses, and the impact of the deconsolidation of its insurance business, NMSIS, in late 2024.
MultiChoice’s woes are compounded by structural industry shifts. The report underscored how consumer behavior is evolving with increasing preference for on-demand content, lower-cost streaming platforms, and even piracy.
“Consumers are migrating rapidly to digital platforms, and traditional pay-TV is facing an existential challenge,” said MultiChoice Group CEO, Calvo Mawela. “Streaming services, piracy, and social media continue to eat into our market share, especially among younger viewers who seek flexible, mobile-first viewing experiences.”
The Showmax platform, MultiChoice’s primary streaming offering, contributed to a R2.3 billion organic increase in trading losses. Despite heavy investment, the platform has yet to turn a profit, facing stiff competition from global giants like Netflix and Amazon Prime.
MultiChoice’s trading profit plummeted by 49% to R4 billion, hit hard by operational losses, foreign currency depreciation, and increased content acquisition costs. Adjusted core headline earnings — a measure of underlying profitability — posted a loss of R800 million, a reversal from R1.3 billion in earnings last year.
Free cash flow also turned negative, with the group reporting a cash outflow of R500 million, compared to a R600 million inflow in FY24. Despite these setbacks, the company maintained R5.1 billion in cash reserves and had access to R3 billion in undrawn borrowing facilities. The firm also made an early repayment of a portion of its R12 billion term loan using proceeds from the NMSIS transaction.
Despite mounting challenges, MultiChoice insists it remains committed to its long-term growth plans. The company emphasized its continued investment in digital innovation and product diversification, including DStv Internet, DStv Stream, and Extra Stream services, all aimed at capturing younger, tech-savvy users.
“Our performance reflects both the challenges we’ve faced and the resilience of our teams,” Mawela stated. “We’re prioritizing operational discipline, cost management, and innovation to future-proof our business in a rapidly evolving industry.”
Notably, the company achieved R3.7 billion in cost savings — a rare bright spot in an otherwise difficult year.
In Nigeria, MultiChoice continues to operate in a complex regulatory and economic environment. The firm has faced criticism over pricing models and service quality, but it has also benefited from regulatory support, including a court ruling affirming its right to set market-driven prices.
However, like other African markets, Nigeria’s inflationary pressures, weakening naira, and increasing internet penetration are shifting consumer loyalty away from traditional pay-TV. With competition from platforms like Netflix, Showmax, YouTube, and TikTok intensifying, MultiChoice’s future will largely depend on how quickly and effectively it can transition from linear broadcasting to a hybrid digital-first model.
MultiChoice’s FY25 results mark a critical turning point for the media giant. Faced with unprecedented subscriber loss, declining profits, and intensifying competition, the company must accelerate its digital transformation and diversify revenue streams to remain relevant in Africa’s fast-changing media ecosystem.
As Africa’s entertainment habits continue to shift, the question remains: can MultiChoice evolve fast enough to reclaim its audience, or will it become another casualty of the global streaming revolution?