MultiChoice South Africa recently released its half-year results for 1 April to 30 September 2022, revealing that its DStv revenue declined from US$1 billion to US$998 million.
In a statement, the pay-TV giant said it saw a weaker-than-normal first quarter.
“The impact of the football off-season was exacerbated by an extremely challenging consumer climate. Generating additional revenue streams continues to be the main focus. The business saw growth in insurance customers, further traction in DStv Internet with the launch of new fibre bundles and additions to the DStv Rewards programme,” MultiChoice noted.
MultiChoice said trading profit of US$344 million resulted in a trading margin of 34.5 per cent.
However, MultiChoice indicated that the seasonality of its cost base is likely to result in the full-year margin being within the 28–30 per cent target range.
The pay-TV operator further stated that “The South African business enjoyed further growth in the mass market. It also reported positive subscriber growth for the Premium package through more enticing bundle offers, product aggregation benefits and a strong sports line-up.”
While MultiChoice is reporting year-on-year growth in DStv Premium package subscribers, a results presentation shows that this was less than 1 per cent.
Its premium market segment, which includes Compact Plus, saw an overall decline of 3 per cent to 1.3 million subscribers.
“The middle segment remained under pressure, as consumers in this segment are most impacted by elevated unemployment rates and consumer indebtedness, as well as rising inflation and interest rates,” MultiChoice stated.
Although MultiChoice didn’t report after-tax profits for its operations in South Africa, earnings across the whole group declined by over 97 per cent from US$129 million to US$3,1 million.
The drop in profitability resulted in MultiChoice reporting a head loss per share of US40.033 — a 116 per cent decrease from the US$0.20 headline earnings it reported last year.