South African pay television company, MultiChoice Group, has reported a $38 million loss before tax in its financial year ended March 31, 2024, attributing the loss to currency volatility and weak consumer spending.
According to Reuters, “Growing debt woes in many African
nations and risk aversion by investors buying African exports have put pressure
on foreign currency reserves, creating volatility.
“Volatile and weaker local currencies, power challenges in
markets like South Africa, and a weak consumer environment due to rising
inflation and high interest rates have created an extremely challenging
environment for the group’s customers and operating segments,” MultiChoice
said.
Reported group revenue fell 5% to 56 billion rand, but grew
3% when currency swings were stripped out, the owner of Dstv and Showmax video
streaming businesses said.
MultiChoice said it will accelerate its cost-saving
programme, with a target of 2 billion rand in the new financial year. The
company, which operates across 50 countries in sub-Saharan Africa, also plans
to cut capital expenditure and prioritise customer retention.
Its active subscribers fell 9% to 15.68 million, mainly due
to a 13% decline in the Rest of Africa business as mass-market customers in
countries like Nigeria had to prioritise basic necessities over entertainment.
The South African business recorded a 5% decline in
subscribers, as many would-be customers could not afford to consistently pay
for its product or chose not to subscribe due to rolling power cuts last year.