MultiChoice reports R55.1bn full-year revenue

MultiChoice, a Pan-African entertainment group, has reported a material cost reduction normalization in the year ended March. This achievement was attributed to their expanded content strategy, which boosted their subscriber base and contributed to the group's total reported revenue of R55 billion. Tim Jacobs, the CFO of MultiChoice, shared insights on the operational environment and the company's strategic initiatives during a recent interview with CNBC Africa. Jacobs highlighted the challenges and opportunities faced by MultiChoice in the current market. Despite encountering consumer pressure, especially in markets like South Africa, where inflation and escalating expenses are impacting the middle market segment, MultiChoice managed to grow its subscriber base by almost a million users. This growth was driven by the resumption of sports broadcasting and the popularity of local content, with over 6,000 hours produced in the last year. The focus on local content has not only been cost-effective for MultiChoice but has also resonated well with consumers, leading to increased engagement and subscriber numbers. Additionally, the company's cost reduction efforts have yielded significant savings, with 1.2 billion rand saved in the last financial year. While MultiChoice faces competition from streaming giants like Netflix and YouTube Premium, Jacobs emphasized the company's key differentiator: its investment in local content. By producing high-quality local shows and expanding its portfolio of showmax originals, MultiChoice aims to continue attracting and retaining subscribers. In a strategic move, MultiChoice increased its stake in BetKing, now called Kingmakers, aligning with the trend of pay television operators partnering with sports betting companies. This synergistic collaboration is expected to leverage SuperSport's broadcasting rights and tap into the growing betting industry across the African continent. Looking ahead, MultiChoice anticipates growth in the rest of Africa business, with plans to achieve break-even on an accounting basis by 2023. The FIFA World Cup in 2023 is expected to drive subscriber growth, providing a financial boost to the company. Overall, MultiChoice remains optimistic about its future prospects, focusing on leveraging local content, cost discipline, and strategic investments to drive growth and profitability.