MultiChoice returns to profitability as foreign exchange losses drop

South Africa’s cable television operator MultiChoice Group plotted its path back to profitability in the year ended 31 March 2025 after cutting back the foreign exchange translation losses that tipped the company into a loss a year earlier by 82.6 per cent.

Shares in the company rose marginally by 0.2 per cent in Johannesburg, following the earnings release.

MultiChoice posted an after-tax profit of 1.8 billion rand, compared to a loss after tax of 4.1 billion rand in the preceding year, its audited annual report issued on Wednesday showed, despite a drop in revenue.

The satellite television service provider reported a loss for the year ended 31 March 2024 after its financials took a hit from net foreign exchange translation losses totalling 5.6 billion rand. The foreign exchange losses resulted from “USD-denominated non-quasi equity loans between MultiChoice Africa Holdings B.V. and MultiChoice Nigeria Limited,” the company said at the time.

For the year under review, MultiChoice managed to reduce the losses to 975 million rand.

“Our performance reflects both the challenges we’ve faced and the resilience of our teams. While macroeconomic pressures and currency volatility have weighed on our results, our disciplined execution, cost management and investment in new long-term growth opportunities position us well for the future,” CEO Calvo Mawela said in a Wednesday statement.

“We remain focused on being Africa’s entertainment platform of choice. Our strategy is shaped by developments in our industry such as changes in technology which are driving shifts in consumer behaviour, as well as the impact of a rise in piracy, streaming services, and social media,” he added.

Revenue diminished by 9.1 per cent to 50 billion rand on the back of a slide in subscription fees. The group, which has been a takeover target of Paris-based media and telecommunications conglomerate Canal+, lost 1.2 million subscribers as weakening consumer spending caused its subscription base across Africa to fall by 8 per cent. MultiChoice said the loss was evenly split between its South African market and Rest of Africa.

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Trading profit declined by 48.7 per cent to 4 billion, driven by organic increase in trading losses in Showmax, the group’s subscription video on demand streaming service, and by material foreign currency revenue losses.

MultiChoice said it partially offset the losses by a total cost savings of 3.7 billion rand.

Profit before tax stood at 5.2 billion rand, compared to a pre-tax loss of 706 million a year earlier.

Revenue from DStv Internet expanded by 85 per cent, KingMakers by 76 per cent (in constant currency) and DStv Stream by 48 per cent. Showmax’s active paying customers increased by 44 per cent in the period.