‘Phuthuma Nathi shareholders should be aware that any dividend is likely to be significantly lower than in prior years.’
MultiChoice, Africa’s leading entertainment platform, has told its shareholders to brace for more difficult times ahead, as it is operating in a challenging consumer environment.
MultiChoice, which operates DStv, has seen its subscribers decline from over 23 million to 19.3 million in less than two years.
In its voluntary operational update, the group said it is preparing its financial results for the year ending 31 March 2025.
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MultiChoice impacted by cost of living
The announcement to shareholders said the challenging consumer environment has resulted in a declined in subscribers and limited revenue growth.
It was also cautioned that positive developments would take time due to high levels of personal indebtedness, such as lower interest rates and a stable rand against the dollar.
“The group was navigating unprecedented external adversities, including macro-economic headwinds, as well as disrupted power supply and severe currency depreciation in some of its key markets in the Rest of Africa.”
MultiChoice reported depressed financial results
The statement also added that increased investment in streaming resulted in the group reporting depressed interim financial results.
“Since then, the group has continued to experience pressure, as household spending remained constrained by the ongoing cost-of-living crisis, compounded by elevated inflation and interest rates in many of its markets.
“This is likely to impact negatively on performance. The group has returned to a positive equity position, but capital preservation remains a key consideration in the current environment.”
Phuthuma Nathi shareholders
“Phuthuma Nathi shareholders should be aware that any dividend is likely to be significantly lower than in prior years.
“The information in this operational and market update is the responsibility of the directors of MultiChoice and has not been reviewed or reported by MultiChoice’s independent external auditors.
“Shareholders are advised that this announcement is not a trading statement under the JSE Limited Listings Requirements. Detailed annual financial results for the financial year 2025 are expected to be released on SENS on 12 June 2025.”
DStv price increases
DStv has announced price adjustments across its packages, effective 1 April 2025:
- Premium: From R929 to R979 (+R50)
- Compact Plus: From R619 to R659 (+R40)
- Compact: From R469 to R479 (+R10)
- Family: From R329 to R339 (+R10)
- Access: From R139 to R150 (+R11)
- EasyView: From R29 to R30 (+R1)
- Access Fees: From R120 to R125 (+R5)
- Add Movies: From R79 to R49 (-R30)
- DStv Stream: No adjustment
- Showmax PL: From R69 to R99 (+R30)
- Showmax Entertainment mobile: From R45 to R50 (+R5)
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