MultiChoice to cut costs amid revenue, subscriber decline

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AFRICAN BUSINESS AND ECONOMYJune 18, 2024 at 1:27 AM UTC

TLDR

MultiChoice CEO, Calvo Mawela, targets R2 billion in cost savings by 2025 to improve financial position and reverse declining revenue and subscribers.
Major cost-saving focus on renegotiating satellite leases to enhance financial health and avoid retrenchment.
Strategic approach to achieve significant savings without impacting the workforce, aiming to strengthen the company's financial outlook.

Following revenue and subscriber declines for the fiscal year ending March 2024, MultiChoice CEO Calvo Mawela stated that the South African media firm could achieve significant cost savings without retrenchment.

According to a MyBroadband report, the South African company aims to reverse the decline and has set a savings target of R2 billion ($109.6 million) by 2025 to enhance its financial position.

The savings will be applied broadly, focusing on major expenses such as satellite leases, which are up for renegotiation soon. This approach is expected to help improve the company's financial health without impacting its workforce.

Key Takeaways

MultiChoice Group reported its operational performance for the fiscal year ending March 2024 (FY24), showing a 9% decrease in total active subscribers. The decline was more pronounced in Nigeria, Angola, Kenya, and Zambia, where subscriber numbers fell by 13%. South Africa experienced a smaller decline of 5%, attributed to a strong focus on retention initiatives. The depreciation of local currencies in these markets, termed "Rest of Africa," reduced the Group's USD revenues by 32%. Despite these challenges, the Group's organic revenue increased by 3%. However, reported revenue fell 5%. Similarly, while subscription revenue increased by 2% organically, it declined by 7% overall.

MultiChoice

Entertainment

Pay-TV

South Africa

Cost Cutting