MultiChoice, the parent company of DStv and Gotv, has experienced a significant downturn in its revenue.
As Africa’s foremost entertainment provider and DStv operator, the company has cautioned its shareholders to prepare for more difficult times as it navigates a challenging economic environment.
The pay-TV titan has also witnessed a decrease in its subscriber count, plummeting from over 23 million to 19.3 million within a span of fewer than two years.
According to NewsPoint Nigeria, insiders revealed that a large fraction of the losses took place outside of South Africa, with over 84% of the impacted users being DStv subscribers.
In a previous announcement, MultiChoice linked the drastic drop to economic challenges in critical markets, especially Nigeria. “The decline seen in the rest of Africa has been mainly due to substantial consumer pressure in Nigeria, where inflation has remained above 30% for most of the past year and, more recently, due to severe power outages in Zambia,” the company stated.
The firm’s latest voluntary operational update, shared in anticipation of its financial results for the year ending March 31, 2025, emphasizes the gravity of its ongoing challenges.
MultiChoice acknowledged that the “difficult consumer environment has led to a decrease in subscribers and restricted revenue growth,” highlighting the financial pressure the company is under.
This development occurs alongside escalating regulatory oversight, as Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) recently initiated charges against MultiChoice, accusing it of breaching local regulatory guidelines.