Showmax’s first revenue numbers released

MultiChoice has released its annual results for the year ended 31 March 2024, revealing strong growth in revenue generated by its streaming video-on-demand (SVOD) service, Showmax.

It reported revenue of R1 billion for Showmax for the financial year, up 22% from the previous year.

“FY24 represented a pivotal year for Showmax. Having officially concluded the partnership with Comcast in April 2023, the long-awaited relaunch took place in February 2024,” said MultiChoice.

Showmax’s revenue grew from approximately R820 million in FY2023 to R1 billion in FY2024.

However, MultiChoice noted that Showmax’s trading losses increased to R2.6 billion, below the expected range of R3 billion to R4 billion.

It noted that this was due to some operational expenditure and depreciation shifting into FY2025, given the launch of Showmax towards the end of FY2024.

MultiChoice relaunched Showmax through its partnership with Comcast in February 2024.

It says Showmax’s growth post-relaunch compensated for the termination of its higher-average revenue per user (ARPU) Showmax Pro service.

“Showmax, which relaunched in February, is showing encouraging early traction,” said MultiChoice.

“It delivered record single-month growth in March 2024, with the paying subscriber base growing 16% from the migrated base at relaunch to year-end.”

It noted that revenue from Showmax subscription fees grew by 1% year-on-year.

MultiChoice highlighted several figures relating to its Showmax subscriber base post-relaunch, including that 100% of subscribers had migrated to the new platform and subscriptions.

It said over 88% of those who migrated are still active and paying for the service.

In late May 2023, former MultiChoice connected video boss Yolisa Phahle said Showmax would make R18 billion in net revenue in five years.

“We are aiming to generate revenue of more than $1 billion after five years, with a trading profit breakeven target in full-year 2027,” said Phahle.

“We are targeting EBITDA margins of 25% and free cash flow margins of around 20% at scale.”

She explained that many players see Africa as the final frontier for SVOD growth and that Showmax aims to become the leading streaming platform in Africa with Showmax 2.0.