MultiChoice CEO says change is coming
MultiChoice Group CEO Calvo Mawela says the company will continue to adapt as the global video entertainment landscape shifts, thanks to the rise of streaming services.
“While staying true to delivering the values that have always defined us, we are taking a hard look at what needs to change,” Mawela said in the company’s most recent annual report.
“We are committed to finding sustainable solutions that will position us to meet the needs of an evolving market.”
Mawela became group chief executive of South Africa’s pay-TV giant as the global industry faced significant challenges with changing user preferences and a shift towards streaming services.
He joined MultiChoice in 2007 as an executive. By 2013, he was appointed to oversee stakeholder and regulatory affairs for MultiChoice South Africa.
Four years later, he ascended to the role of chief executive of MultiChoice South Africa, where he oversaw MultiChoice South Africa and DStv Media Sales.
In October 2018, shortly before MultiChoice Group’s JSE listing, Mawela was appointed as the company’s chief executive officer.
Mawela faced the challenging task of steering MultiChoice, and therefore, DStv, through its most difficult period to date.
In his most recent letter to shareholders, Mawela said the last financial year has been one of trials and tribulations. Still, he is looking forward to a future full of possibilities.
“Our business has been tested in ways we could not have predicted, but we remained resolute in confronting obstacles head-on,” he said.
“Our challenges served as a reminder of the importance of adaptability, teamwork and an unwavering commitment to our mission of building Africa’s entertainment platform of choice.”
He said disastrous economic conditions and unfavourable video market dynamics meant that their video subscription businesses performed below expectations.
The ongoing cost-of-living crisis has also resulted in DStv increasingly being squeezed out of household budgets.
“Against this background, our numbers do not reflect the growth ambitions we set forth at the start of the year,” he said.
“However, they tell a story of perseverance and an organisation determined to endure through turbulent times.”
Focusing on what is within their control
Mawela said in the year ahead, MultiChoice will be looking to do the following:
- Focus on what is within their control — Inflationary pricing discipline, targeted topline initiatives, focused subsidy and marketing spend, and cash flow management are all critical levers.
- Ensure the cost base is fit for purpose — Continue to drive operational efficiencies as this is critical to managing covenant, solvency and liquidity risks, ensuring long-term sustainability and delivering required returns.
- Drive relentless execution against targets — Regularly review performance against operational targets suitably geared towards customer and shareholder value creation, and help reignite innovation and re-positioning of their service offerings.
- Step-up anti-piracy efforts — Elevate the risk across all business segments, increase investment in countermeasures through Irdeto, benchmark best practices against peers, and institute a dedicated cross-functional anti-piracy forum to measure progress.
- Enhancing workforce capabilities — Provide training and resources to equip teams with the skills and tools they need to drive performance.
- Strengthening partnerships — Collaborate more effectively with suppliers, customers and stakeholders to foster resilience and stability across our operations.
“These efforts are part of a broader plan to restore our operational and financial performance, and to position MultiChoice for sustainable growth in a rapidly evolving market,” he said.
“Some of these measures will take time to yield their full impact, but early indicators show promise, and we are resolute in staying the course.”
Mawela said they continue to witness profound changes in the video entertainment industry and the competitive environment in which they operate.
Streaming services and other global media companies, such as Netflix, Amazon Prime Video, YouTube, Disney+, and Apple TV+, are threatening the sustainability of traditional broadcasters.
These changes are forcing companies like MultiChoice to embrace change and reinvent themselves to remain relevant.
“We have made critical strides in optimising our operations, rethinking some elements of our strategy and ensuring that we are laying the groundwork for a sustainable and prosperous future,” Mawela said.
He said that although the road ahead may present challenges, it was also full of possibilities.
“We are navigating this chapter with a focus on rebuilding momentum and laying the foundation for a brighter, more resilient future.”
Mawela said they look forward to closing the Canal+ transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice.
On 23 July, the Competition Tribunal approved the acquisition of MultiChoice by French media conglomerate Groupe Canal+, with conditions.
In a combined statement, the companies said they remain on track to complete the transaction within the announced timelines, and before the long-stop date of 8 October 2025.
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