Is MultiChoice in trouble? Group reports sharp decline in subscribers

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‘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.”

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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.”