A 'spectacular' year for MultiChoice despite 8% dip in SA premium clients
The MultiChoice Group has posted its results for the year ended March 2021.
The DStv operator added 1.4 million 90-day subscribers over the period.
Its active subscriber base now stands 20.9 million - 8.9 million (43%) in South Africa and 11.9 million (57%) in the Rest of Africa (RoA).
South Africa delivered subscriber growth of 6% year on year (500,000 subscribers).
“The impact of Covid-19 and the associated lockdowns saw consumers prioritise video services, but a lack of live sport, combined with the inability of commercial subscribers to trade, negatively impacted revenue generation, especially early in the financial year”.
In the face of these negative factors, revenue still increased 1% to R34.3 billion it says.
Bruce Whitfield interviews Tim Jacobs, CFO of the MultiChoice Group, who describes the past year as "spectacular".
Of course, part of our success has been the fact that residential customers in particular as they were locked down... surged at the start of the financial year and we kept those customers almost all the way through.Tim Jacobs, CFO - MultiChoice Group
It wasn't all plain sailing though says Jacobs, with commercial clients in the hospitality sector down 35%
The loss of some sporting events impacted advertising revenue, but subscribers largely remained loyal.
We have a very creative and innovative SuperSport team that did a lot of documentaries and 'best of' [programmes]...Tim Jacobs, CFO - MultiChoice Group
The premium base, in the rest of Africa and in South Africa, was under pressure both for affordability reasons and because for example in SA we didn't have rugby for the bulk of the year.Tim Jacobs, CFO - MultiChoice Group
In South Africa we lost about 8% of the base and in the rest of Africa about 10%.Tim Jacobs, CFO - MultiChoice Group
We're actively trying to encourage them to downgrade to a lower price package... and we're eagerly awaiting the start of some of those key sporting codes like the upcoming Lions rugby tour in financial year 2022.Tim Jacobs, CFO - MultiChoice Group
What we also managed to do quite successfully was to radically expand... local content programming, which is really resonating well with audiences at the moment.Tim Jacobs, CFO - MultiChoice Group
Listen to Jacobs expand on the MultiChoice results and shifting trends: