Cable TV giant, MultiChoice, owners of DSTV, GOTV, etc, posted a $38 million dip in revenue in the financial year ending March 31, 2024. The company attributed the loss to “currency volatility” and “weak consumer spending.”
“Growing debt woes in many African nations and risk aversion by investors buying African exports have put pressure on foreign currency reserves, creating volatility.
“Volatile and weaker local currencies, power challenges in markets like South Africa, and a weak consumer environment due to rising inflation and high interest rates have created an extremely challenging environment for the group’s customers and operating segments,” the company said.
The company said revenues dropped 5%, number of subscribers were down 9%, exacerbated by a decline of about 13% in subscribers outside South Africa.
The company announced it will accelerate its cost-saving programme, with a target of 2 billion rand in the new financial year. The company, which operates across 50 countries in sub-Saharan Africa, also plans to cut capital expenditure and prioritise customer retention.
It’s not all bad news for the South African based company though, its video streaming business, Showmax, which re-launched in February, was showing “encouraging early traction” with the paying subscriber base growing by 16%, the company said.
