Multichoice, South Africa’s leading media group, has reported a staggering headline loss of R1.8 billion for the six-month period ending 30 September 2024. This marks a significant increase in losses, extending by almost 50% from the same period last year. The company’s revenue also saw a decline of 11% to R24.8 billion, with operating profit dropping by 49% to R2.45 billion.
The financial challenges faced by Multichoice are attributed to unprecedented foreign exchange pressures and economic challenges in key markets. The company’s subscriber base has also been impacted, with around 1.8 million subscribers discontinuing their services, 400,000 of which were in South Africa.
Despite these challenges, Multichoice remains optimistic about its future growth prospects. The company is focusing on cost-cutting measures and new revenue streams, particularly in streaming services like Showmax, which has seen a 50% year-on-year increase in its customer base. Multichoice is also on track to resolve its negative equity position by November 2024.
Key Takeaways:
- Headline Loss: R1.8 billion for the six months ending 30 September 2024.
- Revenue Decline: 11% to R24.8 billion.
- Operating Profit Drop: 49% to R2.45 billion.
- Subscriber Decline: 1.8 million subscribers discontinued services.
- Focus on Streaming: Showmax customer base grew by 50% year-on-year.
- Cost-Cutting Measures: R1.3 billion in permanent savings so far.
Multichoice’s CEO, Calvo Mawela, emphasized the company’s commitment to addressing these financial challenges and returning to a positive net equity position by the end of November 2024. The company’s liquidity position remains strong, with over R10 billion in total available funds.
As Multichoice navigates through these turbulent times, it continues to adapt to the changing media landscape and consumer preferences. The company’s focus on digital transformation and cost optimization will be crucial in its efforts to regain financial stability and drive future growth.
