Nigerians Are Highest DSTV Subscribers in Africa as Multichoice Rakes in N292 Billion
- MultiChoice, the parent company of DStv said it recorded about N192 million in revenue with the bulk of it coming from its Nigerian subscribers
- The company said Nigeria accounted for most of its revenue in its latest financial report which showed that the country led other African countries
- Kenya was next with the highest subscription of 4 per cent increase and 9 per cent in revenue earned from the East African country
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Like most countries in Africa, Nigeria is leading in the highest number of subscribers for MultiChoice-owned satellite television, DSTv.
This is despite high inflation and frequent electricity outages in Nigeria. The South Africa company’s full year-on-year records showed that Nigeria led the rest of Africa in subscription in terms of percentage.
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According to Nairametrics, in comparison to other countries in Africa such as Angola, Zambia and Kenya with a MultiChoice presence, Nigeria came highest with year-on-year subscription growth of 11 per cent and 43 per cent of subscription revenue.
Regionalizing operations helping MultiChoice
This came on the backdrop of regionalising the company’s operations which is responsible for the growth of the pay television company, especially as the company was able to come to an agreement with Nigeria’s tax agency, the Federal Revenue Service (FIRS) which sought to postpone court challenges and start tax audit.
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Other factors that also led to the company’s high yield is attributable to the popularity of the reality television show, Big Brother Nigeria which had a great impact on the performance of the company in Nigeria.
East African country Kenya was next, which dropped 4 per cent year-on-year in subscription growth and 9 per cent in revenue during the year under review.
Zambia’s record showed a decline of 3 per cent in year-on-year subscription growth and 7 per cent growth in revenue. Angola came fourth with year-on-year subscription growth of 1 per cent and 5 per cent revenue in subscription revenue in 2022.
Sports content responsible for company's growth
The CEO of MultiChoice Group, Calvo Mawel stated that the company witnessed reduced loses across Africa and saw a spike in advertising revenues as it continued to focus on cost reduction which allowed the firm to rake in about $74.5 million due to the impact of normalization content cost caused by live sporting activities across its channels.
Mawela stated that the company will increase its entertainment space by identifying growth opportunities that it leverages to spur future growth.
The firm posted a trading profit of N292 billion for the year ended March 31, 2022, which rose slightly by 0.4 per cent in comparison to what it recorded the previous year.
Its rest of Africa operations, including Nigeria, saw a record of $81.3 million in losses while its core earnings went up by 6 per cent at $237.1 million.
DSTV, GOTV: Good news to Nigerians as tribunal stops MultiChoice from increasing tariffs multichoice-increasing-tariffs/
Recall that Legit.ng reported that a Competition and Consumer Protection (CCP) Tribunal sitting in Abuja has restrained Multichoice Nigeria Limited from increasing its tariffs and cost of products and services scheduled to begin on April 1.
The three-member tribunal presided over by Thomas Okosun, gave the order following an ex-parte motion moved by Festus Onifade, a legal practitioner, on behalf of himself and the Coalition of Nigeria Consumers.
NAN reports that in the suit marked: CCPT/OP/1/2022, Multi-Choice Nigeria Limited and Federal Competition and Consumer Protection Commission (FCCPC) are 1st and 2nd respondents respectively.
Source: Legit.ng
