MultiChoice swings from loss to profit

DStv owner MultiChoice has released its annual results for the year ended 31 March 2025, reporting a net profit of R2.02 billion.

This represents a R4.54 billion swing from the R2.52 billion loss it reported in 2023/24.

Much of the swing can be attributed to MultiChoice’s sale of a 60% stake in its insurance business to Sanlam on 30 November 2024.

“The group’s performance was mixed, as the effects of a severely stretched consumer environment, combined with foreign currency and other macro headwinds, were countered by accelerated cost savings and cash management initiatives,” MultiChoice said.

Group revenue declined by 9% year-over-year from R55.0 billion as of 31 March 2024 to R49.98 billion on 31 March 2025.

MultiChoice said this was primarily the result of an 11% decline in subscription revenues caused by foreign currency and subscriber volume headwinds and the deconsolidation of its insurance business.

It should be noted that MultiChoice South Africa’s revenue was slightly up year-on-year at R41.73 billion as of 31 March 2025. However, its Rest of Africa and Showmax operations took a significant hit.

“This was partially offset by inflationary pricing and new product growth (DStv Internet, DStv Stream and Extra Stream),” MultiChoice stated.

The group’s trading profit declined by 49% year-over-year to R4.0 billion.

“Trading profit was materially affected by the R2.3-billion increase in trading losses in Showmax and the R5.2 billion in foreign currency revenue losses,” it said.

However, it noted that this was partially offset by a significant outperformance in delivering total cost savings of R3.7 billion.

While MultiChoice South Africa’s trading profit increased from R8.79 billion to R9.44 billion during the period, its rest of Africa business swung from a profit to a loss, and Showmax’s trading loss widened further.

The MultiChoice Group reported an operating profit of R4.66 billion for the 2024/25 financial year, down 34% from R7.08 billion in 2023/24.

Despite this, it reported a comprehensive net profit of R2.02 billion in 2024/25, representing a 180% swing from the R2.53 billion net loss it reported the year prior.

The group also reported declines in its 90-day active subscribers and overall subscriber numbers.

Subscribers declined by 8% from R15.69 million as of 31 March 2024 to 14.51 million as of 31 March 2025, while 90-day active subscribers declined by 11% to 18.59 million during the period.

“Linear subscribers were down 1.2 million or 8% YoY to 14.5 million active subscribers, with the loss evenly split between South Africa (0.6m) and Rest of Africa (0.6m),” the MultiChoice Group said.

“Although reflecting an improvement on FY24 trends, this indicates ongoing broad-based pressure across the group’s entire customer base.”

The table below summarises key figures from MultiChoice’s results for the year ended 31 March 2025.