MultiChoice, Africa’s largest pay-TV operator, has announced an expected 62-66% improvement in its full-year headline loss per share, narrowing from the previous year’s 715 cent loss. The group cited challenging economic conditions including currency weakness, high inflation, and persistent load-shedding, combined with structural shifts in the entertainment industry. Rising competition from streaming platforms, social media consumption, and rampant piracy have significantly impacted performance, alongside heavy investment costs for its Showmax streaming service.
To counter these pressures, MultiChoice implemented strict pricing controls, explored new revenue streams, and optimized costs. These measures, along with a profit from selling 60% of NMS Insurance Services to Sanlam and adjustments to Showmax’s put option liability, are expected to deliver positive earnings per share overall. However, the company cautioned that continued investment in Showmax – still in its early growth phase – will keep trading profits under pressure.
When stripping out currency fluctuations and portfolio changes, the decline in trading profit appears less severe. MultiChoice will reveal full details when it reports results on June 11. The update highlights both the company’s resilience in tough market conditions and the ongoing challenges of transitioning from traditional pay-TV to digital streaming in Africa’s competitive media landscape.