Connect with us

Broadcasting

MultiChoice Loses 2.8m Subscribers in Two Years

Published

on

Kindly share this post

Video entertainment company MultiChoice’s woes are persisting with the company continuing to suffer massive losses in revenue and subscribers.

This emerged today when the DStv parent company announced its financial results for the year ended 31 March (FY25).

In a statement to shareholders on the Stock Exchange News Service, the JSE-listed firm says the past two financial years have been a period of significant financial disruption for economies, corporates and consumers across sub-Saharan Africa due to challenging macro-economic factors.

Combined with the impact of structural industry changes in video entertainment such as the rise of piracy, streaming services and social media, this has materially affected the overall performance of the MultiChoice Group, it notes.

Over this period, MultiChoice says the group lost 2.8 million active linear subscribers and had to absorb a R10.2 billion negative impact on its topline due to local currency depreciation against the US dollar.

For the year ended 31 March, the company reveals that linear subscribers were down 1.2 million or 8% year-on-year (YoY) to 14.5 million active subscribers, with the loss evenly split between South African (600 000) and Rest of Africa (600 000).

Although reflecting an improvement on FY24 trends, MultiChoice says this indicates ongoing broad-based pressure across the group’s entire customer base.

Active paying Showmax subscribers were up 44% YoY, reflecting healthy growth and gaining regional market share, it adds.

Group revenue declined by R5.2 billion or 9% YoY to R50.8 billion, mainly due to an 11% decline in subscription revenues (-1% organic) caused by foreign currency and subscriber volume headwinds and the deconsolidation of the NMSIS insurance business from December 2024, it explains.

According to the firm, this was partially offset by inflationary pricing and new product growth (DStv Internet, DStv Stream and Extra Stream).

Trading profit, which declined by R3.8 billion or 49% YoY to R4 billion, was materially affected by the R2.3 billion organic increase in trading losses in Showmax and the R5.2 billion in foreign currency revenue losses, partially offset by a significant outperformance in delivering total cost savings of R3.7 billion.

Adjusted core headline earnings, the board’s revised measure of the underlying performance of the business, shifted to a loss of R800 million (FY24: earnings of R1.3 billion) due to lower trading profit and hedging losses in FY25 (compared to gains in FY24), partially offset by smaller losses on cash remittances from Nigeria.

The group incurred a free cash outflow of R500 million in FY25 (FY24: inflow of R600 million), impacted by lower profitability, higher lease repayments due to timing and partially offset by improved working capital management as well as a 29% YoY decline in capex.

At year-end, the group held R5.1 billion in cash and cash equivalents and retains access to R3 billion in undrawn general borrowing facilities.

A part of the R12 billion term loan was repaid early by using the R900 million upfront proceeds from the NMSIS transaction (ie R1.2 billion, net of tax), says the company.

The group operates in numerous markets across Africa and internationally, resulting in significant exposure to foreign exchange volatility.

Amid the challenges, MultiChoice states that management acted decisively to ensure that the group could withstand these headwinds, focusing on key areas within its control.

It notes that this has meant maintaining a discipline of inflationary pricing, with price increases of 5.7% in South Africa in FY25 (FY24: 5.6%) and an average of 31% in local currency in Rest of Africa (FY24: 27%), which enabled the group to offset subscriber volume pressures and deliver 1% YoY organic revenue growth in the current financial year.

In addition, further efficiencies were implemented to manage costs and cash flows without unduly sacrificing the group’s customer value proposition, it adds.

In this regard, the group delivered R3.7 billion in cost savings, well ahead of management’s initial R2 billion target (and the revised R2.5 billion target set at interims) and almost double the R1.9 billion saved in FY24, the company says.

 


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Broadcasting

IFC Strengthens Support for Africa’s Creative Economy with Investment in Filmmakers Market

Published

on

Kindly share this post

To enhance access to production services in Africa’s film and entertainment industry, IFC announced an investment into Filmmakers Mart (FMM), Africa’s first integrated digital production platform.

FMM connects creatives to essential production services including location scouting, logistics coordination, catering, and permit acquisition through a centralized system.

It replaces fragmented service sourcing with a cost-effective, time-saving model, using AI-powered tools and automated workflows to enhance service quality and ensure access to vetted providers and filming locations.

IFC’s investment will support FMM to expand from its current markets in Nigeria, Kenya, Ghana, Morocco and South Africa into new markets. It will also fund the development of new platform features, including subscription models, post-production tools, and training programs designed to serve a growing community of creators.

The partnership will help strengthen Africa’s creative economy, helping creative professionals overcome the access to market barriers faced by so many on the continent.

This marks IFC’s first investment in Nigeria’s audiovisual sector and its first co-investment with Sony Innovation Fund Africa.

“We’re building the operating system for the creative industries in emerging markets; an ecosystem of interconnected tools and services designed to eliminate friction, unlock collaboration, and scale access to opportunities for creatives and entertainment businesses,” said Eric Kafui Okyerefo, CEO, Filmmakers Mart.

“Having IFC and Sony Ventures as strategic partners strongly validates this vision. Their support enables us to deepen our impact, expand globally, and continue solving the structural challenges faced by storytellers and producers in these markets.”

Sony Innovation Fund’s investment will provide FMM with access to its global network and industry expertise in content distribution, helping the platform strengthen its market position.

“At Sony Innovation Fund, we are committed to supporting technologies and platforms that empower creators and drive its growth,” said Antonio Avitabile, Managing Director, Sony Ventures, EMEA.  “Filmmakers Mart is addressing real infrastructure gaps in Africa’s production ecosystem with a smart, scalable solution. We’re proud to partner with IFC on this investment, and excited to help FMM unlock new opportunities for the region’s vibrant creative community.”

“Africa’s film and entertainment sector is brimming with talent, but talent alone is not enough. It needs the right tools, platforms, and investment to thrive,” said Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa. “Our partnership with Sony to support Filmmakers Mart reflects IFC’s commitment to harnessing technology and innovation to support Africa’s creative industries and help scale opportunities for the next generation of storytellers across the continent.”

This partnership, which is helping more women, young people, and underrepresented groups earn incomes and grow sustainable businesses within the digital creative economy, bolsters IFC’s broader aims to create jobs, foster inclusion, and support digital innovation across Africa.


Kindly share this post
Continue Reading

Broadcasting

5 Reasons Why Payroll Outsourcing Might Be the Smartest Move You Make

Published

on

Kindly share this post

Accurate and timely payroll impacts costs, tax compliance, and employee morale. Many organisations assume that insourced payroll is inherently superior. Yet in today’s dynamic business environment, this assumption can be more costly. It can burden valuable personnel, increase compliance risks, and saddle organisations with expensive, yet obsolete, software.

Workplaces are becoming more complex through a wide variety of employment conditions, frequent regulation changes, and growth risks (especially when operating in multiple regions). Payroll systems don’t always keep up, which is why over a third of companies are dissatisfied with their internal payroll systems.

“The importance of accurate and timely payroll is undeniable. But assuming that insourcing payroll is inherently superior misses the mark. In today’s dynamic business environment, clinging to outdated internal systems is costly, diverts valuable personnel, and complicates software management,” says Heinrich Swanepoel, Head of Business Development at Deel Local Payroll, powered by PaySpace.

Outsourced payroll’s strategic advantages

Outsourcing payroll is a strategic move that adds scale and flexibility to an organisation’s operations. Whether it’s for five or five thousand employees, one office or multiple countries, using an experienced and technologically capable outsourced payroll provider creates crucial advantages in workforce management and adaptability.

Here are five key reasons why payroll outsourcing is a game-changer:

  1. Remove Legacy System Limitations and Costs: Outdated payroll software an expose you to delays, errors, and fragmented workflows. Outsourcing with modern technology provides flexibility. Providers can efficiently handle payroll tasks regardless of onboarding surges, market expansions, or workforce adjustments.
  1. Empower Staff for Higher-Impact Work: Outsourced experts add knowledge, coupled with payroll automation, secure collaboration tools, data integration, and enhanced financial visibility. They help key personnel in payroll, HR, and finance to focus on strategic, high-value priorities.
  1. Navigate Payroll Compliance: Outsourcing specialists make it their business to know local and international tax rules, labour laws, and data regulations. They use software with built-in compliance checks, audit trails, and secure document tracking. The provider shares and even inherits the responsibility of payroll software compliance such as GDPR, POPIA, SOC 1 & 2, and ISO 27001.
  1. Flexible payroll management: Outsourced payroll providers use scalable and flexible software to align with organisational changes, enabling their clients to adapt without reconfiguring payroll departments with restructuring or new hires.
  1. Access Advanced Features: Keeping up with new features and aligning them with operations is expensive and disruptive. Outsourced payroll providers introduce cutting-edge technologies like cloud computing, artificial intelligence, and data analytics as part of their core business strategies. They offer seamless integration with client business systems for real-time, fully compliant payroll operations that the client controls without adding technical risks.

Evaluating an outsourced payroll partner

Outsourcing payroll creates huge advantages. But not all outsourced payroll providers are the same. The best candidates combine human expertise with the advantages of modern cloud-native payroll platforms.

To evaluate a provider, test their payroll expertise and compliance knowledge. Security and data protection are non-negotiable, and assess their track record with other clients. Look at what software they use—the capabilities of the software and how well their people can use those features are as important as the staff’s professional capabilities. Are they masters of their tools as well as their craft?

Interrogate their service levels and how they extend capabilities to clients, such as self-service and ad hoc reporting. Evaluate the technology platform in terms of real-time data access, automated calculations, integration with HR and accounting tools, and compliance.

“Outsourcing payroll isn’t just about saving time — it’s a strategic move that positions your business for growth, compliance, and agility,” says Swanepoel. “With the right partner, you can reduce costs, streamline operations, and focus your energy where it matters most: on your people and your business.”


Kindly share this post
Continue Reading

Broadcasting

Idris, Information Minister Says Only NBC can Suspend Broadcast Licences

Published

on

Kindly share this post

Mohammed Idris, minister of information, has reacted to the closure of Badeggi FM radio station in Niger state.

Idris, Information Minister Says Only NBC can Suspend Broadcast Licences

Mohammed Idris, minister of information,

On Friday, Umar Bago, governor of Niger state, ordered the commissioner of police to seal off Badeggi FM radio station over alleged incitement of violence.

A statement by Bologi Ibrahim, chief press secretary to the Niger governor, said the “daily activities of the radio station have been unethical”.

“Governor Bago also accused the owner of the station of incitement of the people against the government and directed that the license of the radio station be revoked,” the statement reads in part.

Reacting in a statement at the weekend, Rabiu Ibrahim, special assistant (media) to Idris, said the ministry has noted concerns raised by stakeholders in the media industry over the governor’s directive.

Idris said the National Broadcasting Commission (NBC) has the legal authority to suspend or revoke broadcast licences.

“While acknowledging the concerns raised, the Ministry notes that the suspension of broadcasting licenses falls within the purview of the National Broadcasting Commission (NBC), as stipulated by law,” he said.

“In light of this, the Ministry welcomes the decision of the Niger State Government to formally report the perceived “unethical behavior” of Badegi FM to the NBC for resolution.

“The Minister appeals to all parties to remain calm, assuring that the NBC has the necessary mechanisms to resolve the issue in a fair and impartial manner.”

According to the information posted on its website, Badeggi Radio 90.1 FM, Minna, is a private radio station established in 2020 by Shuaibu Badeggi.


Kindly share this post
Continue Reading

Trending