Multichoice, the pay-TV operator, has witnessed significant growth in its betting business in Nigeria, with its betting platform, KingMakers, experiencing a 37% increase in users for the financial year ending March 31, 2024. This growth was highlighted in the company’s recently released financial results.
This surge comes amidst an 18% decline in subscribers for its main business, DStv and GOtv, partly attributed to economic challenges and consecutive price increments over the past year. The decline indicates a shift towards betting among Nigerians, seen as a means of coping with economic difficulties and hoping for additional income through gambling.
While Multichoice faced declines in its pay-TV business across operations, it reported a 26% year-on-year revenue increase from Nigeria in constant currency in its online gaming business. However, in reported currency (USD), the $147 million revenue for the year was 26% lower than FY23 due to the impact of the weaker naira. Despite this, KingMakers reported a positive EBITDA of USD2 million, with a retained cash balance of USD113 million at the end of December.
In its overall financial performance for the year, Multichoice reported a loss of 4.148 billion rands ($224.87 million), an increase from a loss of 2.9 billion rands ($157.21 million) the previous year, attributing it to foreign exchange losses in Nigeria, Kenya, Zambia, and Angola.
Multichoice ventured into the betting business in Nigeria by acquiring a 20% stake in Nigerian online sports betting company BetKing, now known as KingMakers, for R1.3 billion in 2020. In 2021, it increased its stake to 49% for $281.5 million. Leveraging its extensive sports coverage, Multichoice aimed to boost the betting business. Internal data cited by KingMakers showed that 77% of DStv subscribers are active betters or engage in match predictions, providing a vast customer base for a betting product.
The move aligns with the remarkable growth projections of Africa’s gambling market, which was predicted to reach a value of $37 billion by 2022, with sports betting accounting for most of that growth. MultiChoice’s acquisition was driven by the impressive growth projections of the sports betting industry.
