DStv owner MultiChoice has reported a staggering R4.1 billion loss for the year ending 31 March 2024 and has become technically insolvent.<\/p>\n
This marks the company\u2019s worst financial performance on record, with a 42% increase in losses compared to the previous year.<\/p>\n
MultiChoice\u2019s financial woes stem from a double whammy: a 9% decline in active subscribers and unfavourable foreign exchange rates.<\/p>\n
This resulted in a 5% net decline in group revenue to R56 billion and a 21% decline in group trading profit to R7.9 billion.<\/p>\n
The subscriber losses were felt across all markets, with DStv\u2019s South African and Rest of Africa businesses experiencing a drop.<\/p>\n
In addition to this awful financial performance, MultiChoice\u2019s balance sheet shows the company has become technically insolvent.<\/p>\n
The company\u2019s total assets have shrunk from R47.6 billion to R43.9 billion, while liabilities have risen to around R45 billion.<\/p>\n
With negative equity of R1.068 billion, MultiChoice cannot settle all its debts if forced to sell its assets.<\/p>\n
Despite the bleak financial picture, MultiChoice maintained a confident front and described its operational performance as \u201cresilient\u201d with signs of an imminent turnaround.<\/p>\n
MultiChoice said it was prioritising cash generation and has accelerated its cost-reduction program, aiming to save R2 billion by its 2025 financial year.<\/p>\n
\u201cClear strategic milestones were reached, with the group successfully launching Showmax 2.0, SuperSportBet and Moment,\u201d MultiChoice said.<\/p>\n
\u201cAll of these are now revenue-generating and supporting the group\u2019s future growth prospects.\u201d<\/p>\n
MultiChoice Group CEO Calvo Mawela said that four years after establishing a clear strategy of building Africa\u2019s entertainment platform of choice and investing in services to support a broader ecosystem, its three core segments are now fully operational.<\/p>\n
These are video entertainment, interactive entertainment, and fintech.<\/p>\n
\u201cOur focus now shifts to building on these solid foundations to drive growth in these new areas, and on further enhancing business efficiency across our operations,\u201d the company said.<\/p>\n
\u201cThe group will continue its efforts to drive growth in focused areas, notably Showmax, Moment, SuperSportBet, DStv Insurance, DStv Internet, and DStv Stream.\u201d<\/p>\n
MultiChoice said it would do this while working hard to retain its DStv and GOtv customers and support their activity rates through the coming financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"
MultiChoice reported a staggering R4.1 billion loss for the year and has become technically insolvent.<\/p>\n","protected":false},"author":15,"featured_media":515337,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[85,35,475],"class_list":["post-540825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-dstv","tag-headline","tag-multichoice"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/540825"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=540825"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/540825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/515337"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=540825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=540825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=540825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}