MultiChoice Reveals Huge Profit After BB Naija, Price Increase in Nigeria, Moves $235m to South Africa

• MultiChoice Group, the parent company of DStv, said it has made its first trading profit outside South Africa
• The company revealed via its annual financials that its business generated positive trading profits of 0.90 billion rands
• It said the profits were buoyed by its flagship reality TV show, Big Brother Naija and the World Cup which ramped up about $235 million in profit

MultiChoice Group stated that its operations in the Rest of Africa (RoA) have led to its first trading profit in the financial year ending March 31, 2023, as it hiked prices in April 2022 and May 2023.

Per the group’s complete financial statement, RoA’s business generated a positive trading profit of 0.90 billion rands, a 4% trading profit margin, and a 2.8 billion rands organic improvement from the year before.

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MultiChoice's operations in South Africa falls

The company said this is the first positive trading result since it was listed in 2019.

It revealed that the strong performance was also enhanced by decoder subsidy and marketing for the FIFA World Cup.

The satellite television market leader stated that its subscriber base grew outside South Africa, adding 1.7 million 90-day active subscribers, an 8% year-on-year growth, closing the year with 23.5 million subscribers.

The 90-day subscriber base comprised 14.2 million households (60%) in the Rest of Africa and 9.3 million (40%) in South Africa.

The firm revealed that the South African consumer environment plummeted sharply, especially in the second part of the financial year.

It said:

“The strong performance in the Rest of Africa, which added 1.4m subscribers, was underpinned by the decoder subsidy and marketing investments for the FIFA World Cup, which will be fully paid back by the end of 1H FY24.

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MultiChoice makes huge profits in Nigeria

Reports say MultiChoice Nigeria accounted for 44% of its Rest of Africa subscriptions and grew its revenue by 29% from N177.5 billion in 2022 to N277.1 billion in 2023.

It said its Big Brother Naija show boosted its performance in Nigeria, attracting millions of young Nigerians.

The Guardian reports that the Group managed to extract $235 million from the Nigerian market despite the liquidity squeeze in the country.

MultiChoice said it sourced the exchange at N680 per dollar.

MultiChoice announces price increase of DStv subscriptions one year after similar move

Legit.ng reported that MultiChoice Nigeria has said it is set to implement another price increase across its DStv bouquets effective May 1, 2023, one year after it announced a similar upward review of prices in April 2022.

The increase in the various packages is between 16.3% to 18.6%, and the company said the lasted price hike is due to multiple economic challenges confronting the business.

The announcement said that beginning from May 1, subscribers on the Premium package will pay N24,500, an increase of 16.7% from the N21,000 they currently pay, while the Compact+ package will cost N14,250 monthly, a 16.5% increase.

Source: Legit.ng