Pay-TV operator, MultiChoice Group, has announced that it repatriated $184million (approximately N192.09 billion) from Nigeria in the financial year ending March 2024.
This figure was disclosed in the company’s consolidated financial statements released on Wednesday.
This amount marks a substantial increase from the previous year’s $132 million, facilitated at an average exchange rate of N1044:USD, compared to N684:USD in FY23. Despite the successful remittance, MultiChoice incurred losses of $59 million, a decrease from $132 million in the prior year. By the end of FY24, the group held $39 million in cash in Nigeria, down from $104 million at the end of FY23, largely due to continuous efforts to remit cash and the effects of translating the balance at the weaker naira rate.
The fiscal year saw a 13 percent decline in subscribers across Nigeria, Angola, Kenya, and Zambia. The depreciation of local currencies, including Kenya’s, had a 32 percent impact on the Group’s USD revenues. Conversely, South Africa experienced only a five percent decline in subscribers, attributed to a “strong focus on retention initiatives.”
MultiChoice attributed the decline in its Nigerian subscriber base, one of its largest markets, to challenging economic conditions. “The group’s nine percent decline in active subscribers was mainly due to a 13 percent decline in the Rest of Africa business as mass-market customers in countries like Nigeria had to prioritize basic necessities over entertainment,” the company stated. FY24 posed the toughest macro-economic conditions for the Rest of Africa business since 2016, with extreme foreign exchange depreciation and high inflation significantly reducing customer spending power.
The subscriber base decreased by 1.2 million to 8.1 million by the end of FY24. “Subscriber growth is typically more muted in a year that follows the FIFA World Cup, but FY24 came in below trend as the subscriber base declined year on year in the face of a deteriorating macro and consumer environment,” MultiChoice explained.
Despite these challenges, MultiChoice continues to manage its business based on active subscribers to optimize retention and activity rates in a low-growth environment. The company emphasized its focus on active subscribers rather than the 90-day active subscriber metric but will continue to disclose both for continuity.
LEADERSHIP recalls that in February 2024, MultiChoice reached a settlement with the Federal Inland Revenue Service (FIRS) regarding tax assessments from 2021. The group agreed to pay a total tax amount of N35.4 billion ($37.3 million). Additionally, MultiChoice increased its DStv and GOtv bouquet prices three times over the past year.
The economic situation in Nigeria has worsened recently, with inflation reaching 33.69 per cent as of April 2024. High double-digit inflation in many of the group’s core markets has significantly pressured customer spending power.
Recall that LEADERSHIP also reported the recent ruling by the Competition and Consumer Protection Tribunal in Abuja which ordered MultiChoice to provide Nigerians with a one-month free subscription on DStv and GOtv, following the company’s failure to comply with an order to halt new price implementations.
In another development, MultiChoice has entered into a Cooperation Agreement with Groupe Canal+ SA, following a ruling by the Takeover Regulation Panel of South Africa. Canal+ was required to pursue a mandatory offer after acquiring more than a 35 per cent interest in MultiChoice Group, subsequently increasing its shareholding to 45.20 per cent.
Overall, MultiChoice reported a net decline in group revenues of five percent due to inflation-led pricing, foreign exchange headwinds, and a lower subscriber base.