Multichoice Group, the African Pay-TV operator, has attributed an 18 percent decline in DStv active subscribers in Nigeria to the country’s struggling economy. This information was revealed on Wednesday in the company’s financial results for the year ending March 31, 2024.
The decline in Nigerian subscribers significantly impacted Multichoice’s overall subscriber database, resulting in a 9 percent decrease for the year. Although the exact number of subscribers in Nigeria was not disclosed, it was included in the category labeled ‘Rest of Africa’ (RoA).
According to Multichoice, the 18 percent drop in Nigerian subscribers contributed to a 13 percent decline in the RoA’s total active subscribers, which fell from 9.3 million in 2023 to 8.1 million in 2024.
“The group’s 9% decline in active subscribers was mainly due to a 13% decline in the Rest of Africa business as mass-market customers in countries like Nigeria had to prioritize basic necessities over entertainment, while the South African business showed more resilience with a 5% decline,” the company stated.
Multichoice explained that the Nigerian economy and consumers faced several persistent challenges during the fiscal year 2024, including the removal of fuel subsidies, sharp currency depreciation with the naira halving in value, inflation climbing to over 30 percent, and higher emigration of the middle and upper classes. These factors drove the 18 percent year-over-year decline in active subscribers.
This decline also reduced Nigeria’s contribution to the Rest of Africa revenues from 44 percent to 35 percent. Similar trends were observed in Ghana, where inflation remains above 20 percent.
Due to these challenging market conditions, Multichoice shifted its short-term focus for the RoA (Nigeria, Angola, Kenya, Ghana, and Zimbabwe) from subscriber growth to safeguarding profitability and cash flows. Several cost-saving initiatives were implemented, including a significant reduction in decoder subsidies by 46 percent year-over-year (or ZAR1.3 billion) and cutting selling, general, and administrative costs by ZAR500 million. These measures allowed the Rest of Africa business to increase trading profit by 48 percent year-over-year to ZAR1.3 billion.
In a related development, ahead of Multichoice’s new subscription prices implementation on May 1, a Competition and Consumer Protection Tribunal (CCPT) in Abuja issued an order restraining the company from implementing the new prices based on a case filed by a Nigerian customer. However, Multichoice proceeded with the new prices, leading the Tribunal to impose a N150 million fine on the company for challenging the court’s jurisdiction. The Tribunal, led by Thomas Okosu, also ordered Multichoice to provide Nigerians with a one-month free subscription on DSTV and GOTV.
