Multichoice, the operator of DStv and GOtv, has reported a revenue loss of $72 million for the third quarter of 2023. This significant loss has been attributed to two main factors: constant power cuts in South Africa and the devaluation of the Nigerian naira.
Multichoice, Africa’s top Pay TV provider, has announced a revenue loss of $72 million for the third quarter of 2023.
This loss has raised concerns about the company’s financial performance and its ability to navigate challenging economic conditions.
Multichoice cited constant power cuts in South Africa as one of the reasons for the revenue loss.
These power cuts have disrupted operations and affected the company’s ability to provide uninterrupted services to its customers.
The devaluation of the Nigerian naira has also played a significant role in Multichoice’s revenue loss.
After Nigeria allowed the naira to trade more freely in mid-June, the currency experienced a 40% devaluation against the US dollar.
This devaluation has negatively impacted Multichoice’s financial performance, as it has increased the cost of doing business and affected the company’s profitability.
Multichoice stated that inflationary pressures influenced its operations in key markets like Nigeria.
These pressures have made it challenging for the company to maintain stable subscription revenues and profitability.
Despite the revenue loss, Multichoice reported that it added 0.1 million subscribers, bringing the total to 13.0 million 90-day active subscribers.
The active subscriber base remained stable at 8.9 million subscribers, and subscription revenues grew by 14% organically.