MultiChoice Blames Nigeria's Economy As They Record Huge Loss in Financial Year End 2024

MultiChoice, a satellite television service provider based in South Africa, reported significant financial losses for the fiscal year ending 31 March 2024. The company incurred a net loss of 4.1 billion rand (equivalent to $225.8 million at the current exchange rate), marking its second consecutive year of losses. This represents a deepening of its financial troubles compared to the previous year's net loss of 2.9 billion rand.

The primary driver behind these losses was substantial net foreign exchange translation losses amounting to 6 billion rand. These losses arose from the depreciation of the Nigerian naira (NGN) against the US dollar (USD), which negatively impacted USD-denominated non-quasi equity loans between MultiChoice Africa Holdings B.V. and MultiChoice Nigeria Limited. The exchange rate deteriorated significantly, from NGN 464.50 per USD at the end of FY23 to NGN 1,308.00 per USD in FY24.

In addition to the currency-related losses, MultiChoice's revenue dropped by 5.9 percent to 55 billion rand. This decline was largely due to a decrease in subscription fees, the company's main revenue stream. The subscriber base shrank by 9 percent, driven by a 13 percent drop in subscription rates outside South Africa, in regions collectively referred to as "Rest of Africa." The most affected markets included Nigeria, Zambia, and Angola. In contrast, the South African segment of the business showed more resilience, with a smaller decline of 5 percent.

Overall, MultiChoice reported a loss before taxation of 706 million rand, a significant downturn from the pre-tax profit of 921 million rand recorded the previous year.

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Posted: at 13-06-2024 06:07 PM (10 months ago) | Addicted Hero

You want to increase again, people are running to free-to-air because sub with fail power supply is a waste of sub so the more you increase the more you drive customers.

Posted: at 13-06-2024 06:53 PM (10 months ago) | Addicted Hero

True

Posted: at 14-06-2024 06:36 AM (10 months ago) | Addicted Hero