Latest news with #R50.8
The South African
a day ago
- Business
- The South African
DStv bleeds 6 300 subscribers PER DAY over the last 12 months
MultiChoice has reported a major slump in its subscriber base, losing 2.3 million active DStv customers over the past year – the second consecutive year of steep decline. The drop includes 614 000 subscribers in South Africa and a further 1.73 million in the Rest of Africa, reflecting a continued deterioration in the pay-TV giant's core markets. The figures were disclosed in the group's financial results for the year ending 31 March 2025, released last week. The numbers paint a troubling picture: group revenue dropped 9% to R50.8 billion, driven largely by an 11% decline in subscription income, while trading profit fell to R4 billion. The number of 90-day active subscribers – defined as those with an active subscription within 90 days prior to the reporting date – dropped from 20.93 million in 2024 to 18.59 million in 2025. South Africa: from 8.55 million to 7.94 million from 8.55 million to 7.94 million Rest of Africa: from 12.38 million to 10.66 million That's a drop of around 6 300 per day . This trend follows last year's decline and has impacted all DStv segments – premium, mid-market, and mass-market: South Africa Premium: -10% Mid-market: -6% Mass-market: -7% Rest of Africa: Premium: -13% Mid-market: -12% Mass-market: -14% MultiChoice said the broad-based contraction reflects continued economic hardship, exacerbated by load shedding, high unemployment, and a cost-of-living crisis that has forced many households to cut back on non-essential spending like pay-TV. 'Households are struggling to make ends meet, and many have no choice but to give up their DStv subscription,' the group stated. In South Africa, DStv is also facing structural headwinds. Consumers are increasingly turning to cheaper streaming platforms, free video content, and pirated services, all of which offer greater flexibility and lower costs. 'The negative trend was evident across all three market segments, suggesting that economic hardship and affordability remain a challenge across the board,' the report noted. Even Showmax, the group's streaming arm, was not immune to financial pressures, with revenue and trading profit also declining during the period. With very few indicators of a turnaround, MultiChoice is now under pressure to reinvent itself in a changing media landscape. The company says it is focusing on improving customer experience, diversifying revenue through new business lines like fintech and insurance, and forming strategic partnerships to support growth. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
4 days ago
- Business
- The Citizen
Another year, another decline in DStv subscribers: Will Canal+ be buying a shell?
'Over this period, the group lost 2.8 million active linear subscribers and had to absorb a R10.2bn negative impact on its topline due to local currency depreciation against the US dollar.' Multichoice Group, parent company to DStv, has recorded another year of decline in subscribers. The announcement of another decline comes weeks after the Competition Commission approved the acquisition of the streaming company by French Media giant Canal+. At the rate the streaming network is losing subscribers, Canal+ might find itself buying a shell. Multichoice released its financial results for the year ended March 2025 on Wednesday, which revealed DStv lost subscribers, but not as many as the previous financial year. DStv struggles The streaming network stated that the past two financial years have been a period of significant financial disruption for economies, corporations, and consumers across sub-Saharan Africa, due to challenging macroeconomic factors. The macroeconomic factors were combined with the impact of structural industry changes in the video entertainment sector, including the rise of piracy, the emergence of streaming services, and the growth of social media. 'Over this period, the group lost 2.8 million active linear subscribers and had to absorb a R10.2bn negative impact on its topline due to local currency depreciation against the US dollar.' ALSO READ: MultiChoice profit nosedives with huge decline in subscribers Showmax not helping DStv Revenue declined by 9% to R50.8 billion, primarily due to an 11% drop in subscription revenue, and trading profit decreased to R4.0 billion. To address the decline in DStv subscribers, MultiChoice invested in Showmax, its online streaming platform. However, this strategy has not yielded any success. The Group said that Showmax's active paying customers increased by 44%. Despite this increase, its revenue still declined from R1.3 billion to R1.0 billion. Showmax's trading loss increased from R2.6 billion to R4.9 billion, highlighting the platform's accelerating financial losses. The future of MultiChoice 'Our performance reflects both the challenges we've faced and the resilience of our teams. While macroeconomic pressures and currency volatility have weighed on our results, our disciplined execution, cost management and investment in new long-term growth opportunities position us well for the future,' said Calvo Mawela, MultiChoice Group CEO. MultiChoice's outlook includes: Stabilising the topline in the video businesses through focused retention initiatives, while supporting rapid topline growth in the group's interactive entertainment, fintech and insurance investees, Continuing to drive operating, cost and working capital efficiencies into the group to protect profitability and cash flows, Continuing to work with Canal+ towards a successful close of their mandatory offer, unlocking significant long-term benefits for the combined entities and their respective stakeholders. NOW READ: Competition Commission greenlights MultiChoice and Canal+ deal
