MultiChoice Group has released its financial results for the year ended 31 March 2019, which show strong growth at the company.
MultiChoice consists of DStv satellite TV, online operations such as DStv Now, and Showmax.
The following highlights were documented in the annual results:
- 1.6 million subscribers were added across Africa – 12% year-on-year growth.
- The total subscriber base is 15.1 million.
- The “rest of Africa” subscriber base is 7.7 million.
- South Africa’s subscriber base is 7.4 million.
MultiChoice Group said it generated R50.1 billion in revenue over the period, which was an increase of 6%.
“Subscription revenue amounted to R41.2bn, up 7% on last year,” it said.
Trading profit was up 11% to R7 billion.
The company said its investment in local content was also up for the period, and MultiChoice added 4,600 hours of local content to its library.
“The spend on local general entertainment content as a percentage of total general entertainment content increased from 38% to 40%, in line with the strategy to reach a target of 45%,” said MultiChoice.
Capital expenditure of R1 billion was slightly up year-on-year due to additional investments in information technology infrastructure to improve customer experience, it added.
The company also paid R3.7 billion in taxes.
Looking at South Africa, MultiChoice said it saw subscriber growth of 8% year-on-year – around 500,000 subscribers.
“This was on the back of healthy subscriber growth in the mass market.”
The “premium” segment, however, was under pressure – and average revenue per user in the country declined from R335 to R322.
The Showmax and DStv Now services performed well, said the company, and online subscribers doubled year-over-year.