The company revealed these figures in its Interim Financial Results for the period ending 30 September 2024, which were released on Tuesday.
The South African pay-TV operator MultiChoice Group has lost 243,000 subscribers in Nigeria.
The loss happened on its Digital Satellite Television (DStv) and General Entertainment on Television (GOtv) services from April to September this year.
The company revealed these figures in its Interim Financial Results for the period ending 30 September 2024, which were released on Tuesday.
MultiChoice attributed this decline to Nigeria’s high inflation rate, which exceeds 30%, driven by the rising costs of food, electricity, and fuel, causing many customers to disconnect.
In its financial report for March 2024, MultiChoice had earlier reported an 18% subscriber loss in Nigeria.
The company further reported a 566,000-subscriber loss in the Rest of Africa operations over the past six months, with Zambia and Nigeria contributing the largest shares to this decline.
“With the Rest of Africa business having seen a decline of 803k subscribers in 2H FY24, this rate of decline slowed to 566k in 1H FY25,” stated MultiChoice.
The loss included 298,000 in Zambia and 243,000 in Nigeria, while other markets experienced a minor decline.
Extreme inflation and currency instability have negatively impacted the group’s profits, with MultiChoice Group CEO Calvo Mawela commenting, “We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year.”
Mawela noted that the group’s net equity position is expected to recover by November.
With regard to Zambia’s losses, the company attributed them to extensive power outages caused by drought, leaving some regions with up to 23 hours of daily outages.
The company also cited competition from streaming services and changes in viewer preferences as pressures on its traditional pay-TV model.
To adapt, MultiChoice invested an additional ZAR1.6 billion in its streaming service Showmax, which reported 50% year-over-year growth.
Mawela added, “Showmax strategically positions the business to actively participate in the streaming revolution as it gains momentum across Africa.”