MultiChoice Group showcases resilience in its Nigerian operations amid notable economic turmoil. The 2024 financial summary unveiled that the Nigerian arm of the pay-TV operator encountered substantial foreign exchange losses exceeding R4 billion ($216.9 million) in the past year.

Nigeria's economic landscape, characterized by inflation rates surpassing 30% due to currency devaluation and the elimination of fuel subsidies, has posed challenges to consumer spending patterns. This has necessitated individuals to prioritize essential expenditures over entertainment services.

CEO Calvo Mawela of MultiChoice Group interprets the current challenges as temporary inconveniences for long-term gains. He retains confidence in the benefits expected from the ongoing reforms, emphasizing the importance of consistency. Mawela praised the policy adjustments, notably the removal of the oil subsidy and the shift towards market-determined naira valuations.

Despite the significant forex impact in Nigeria, Mawela expressed faith in the recent policy changes by the Nigerian government led by President Bola Tinubu. These revisions, including the elimination of the oil subsidy and the adoption of market-driven naira valuations, are projected to stabilize the economy and draw investments in infrastructure.

On the flip side, MultiChoice encountered a 9% shrink in its subscriber base, predominantly due to a 13% decline in the 'rest of Africa' segment, excluding South Africa. Nations like Nigeria witnessed an 18% reduction in active subscribers, resulting in a decreased revenue contribution from Nigeria to the 'rest of Africa' segment.

Notwithstanding the challenges, the group managed to remit US$ 184 million from Nigeria in the 2024 fiscal year, showcasing an improvement from the previous year. The cash reserves in Nigeria diminished by the conclusion of the financial year, influenced partially by fluctuating currencies.

In South Africa, MultiChoice confronted a 5% dip in business performance, attributing it to obstacles such as load shedding impacting subscriber acquisition. The company's revenue suffered from a 3% decline in subscription revenues and softened advertising income, contributing to an overall revenue fall. However, the growth in new revenue streams, particularly in the insurance sector, partially offset this decline.

MultiChoice achieved a 24% surge in group trading profit organically, primarily fueled by strategic investments targeting future subscription growth. The company's cost-saving initiatives played a pivotal role in alleviating the adverse impacts of forex weaknesses on the reported trading profit. MultiChoice maintained substantial cash reserves and access to borrowing facilities, ensuring flexibility for future endeavors.