MultiChoice, Africa’s leading entertainment company, has reported a significant financial downturn for the fiscal year ending March 31, 2024.

The company recorded a staggering loss of R4.1 billion (approximately $222 million), marking the worst financial performance in its history. This downturn has rendered the company technically insolvent, raising concerns about its future viability.

MultiChoice’s active subscriber base declined by 9%, driven by a 13% drop in the Rest of Africa business and a 5% reduction in South Africa. This decline has been a critical factor in the company’s financial woes, impacting revenue and profitability. Despite the overall decline, Showmax, MultiChoice’s streaming service, re-launched in February and saw a 16% increase in its paying subscriber base from the migrated base, showcasing some areas of growth within the company.

Group revenues fell by 5% to R56 billion due to the decline in subscribers and unfavorable foreign exchange rates. Consequently, group trading profit decreased by 21%, dropping to R7.9 billion. MultiChoice’s total assets decreased from R47.6 billion to R43.9 billion, while liabilities increased to around R45 billion, resulting in a negative equity of R1.068 billion. The loss for the year rose from R2.9 billion to R4.1 billion, a 42% decline.

One of the major challenges for MultiChoice has been its long-term debt, which increased from R8 billion to R12 billion over the past year. To address its working capital needs, MultiChoice secured a R12 billion syndicated term loan, with R8 billion drawn down during the 2023 financial year and an additional R4 billion accessed in October 2023. The loan has a five-year term and bears interest at the three-month Johannesburg Interbank Average Rate (JIBAR) plus 1.44%, with the capital portion due in bullet payments five years from each drawdown date.

Despite the dire financial situation, MultiChoice remains optimistic about a potential turnaround. The company has implemented measures to position itself better amid the foreign exchange crisis affecting its core markets. These measures include prioritizing cash generation over growth in the short term and setting a target of R2 billion in savings by the end of the fiscal year 2025 (FY25). MultiChoice has embedded these savings targets in its budgets and within the personal objectives of key executives to ensure delivery.

The company also aims to drive growth in focused areas such as Showmax, Moment, SuperSportBet, DStv Insurance, DStv Internet, and DStv Stream. The significant decline in revenue and profitability could be a contributing factor to MultiChoice’s reported interest in selling company, as it seeks ways to stabilize its financial position.

MultiChoice’s financial statements for the year ending March 31, 2024, paint a bleak picture of the company’s current state, with record losses and technical insolvency. The significant decline in subscriber numbers and adverse foreign exchange rates have severely impacted revenues and profitability.

However, the company’s efforts to secure additional funding and its strategic focus on cash generation and targeted growth areas provide a glimmer of hope for a potential recovery.

The significant decline in revenue and profitability has led to speculation about MultiChoice’s future. The company was made a $1.69 billion purchase offer by a French company Vivendi’s Canal Plus in February.

Although MultiChoice rejected the offer after the board concluded that it “significantly undervalues”, the company, it said, “the board is open to all means of maximizing shareholder value.”

“The board, however, remains open to engage with any party in respect of any offer which is for a fair price,” Multichoice said.

This potential sale could be seen as a way for MultiChoice to secure additional capital and expertise to navigate its current challenges.

Market reactions to MultiChoice’s financial performance have been mixed. Some analysts are optimistic about the company’s turnaround strategy and its focus on cash generation and targeted growth areas. Others are concerned about the long-term viability of the company, given its significant losses and technical insolvency.


  1. This company should just close its just ripping customers. Better people start shifting to Netflix, Amazon and other online providers with much better content.


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