Multichoice Group, the African Pay-TV operator, has lamented the recent drop in the number of DStv subscribers in Nigeria.
In the company’s financial report for the year ending on March 31, 2024, Multichoice attributed the 18% decrease in active subscribers of DStv in Nigeria to the country’s economy.
It noted that the latest decline in Nigeria had a significant impact on the overall subscriber database, resulting in a 9% decrease for the entire year.
The specific number of subscriptions in Nigeria was not provided, as it was combined with other operating units outside South Africa under the category of ‘Rest of Africa’ (RoA).
Multichoice further revealed that the 18% decline in Nigeria contributed to a 13% decrease in the total active subscribers of RoA, bringing the figure down to 8.1 million from 9.3 million in 2023.
“The group’s 9% decline in active subscribers was mainly due to a 13% decline in the Rest of Africa business as mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment, while the South African business showed more resilience with a 5% decline.
“The Nigerian economy and consumers faced persistent challenges through FY24. The removal of fuel subsidies, sharp currency depreciation with the official naira halving in value, inflation climbing to over 30%, and higher emigration of the middle and upper class drove an 18% YoY decline in active subscribers,” the company said.
Multichoice mentioned that this led to a decrease in Nigeria’s share of the Rest of Africa revenues from 44% to 35%.
It was pointed out that Ghana experienced a comparable subscriber trend due to an inflation rate that remains above 20%.
Additionally, Multichoice explained that, because of the difficult market conditions, the immediate priority for its RoA (Nigeria, Angola, Kenya, Ghana, and Zimbabwe) operations shifted from increasing subscribers to protecting profitability and cash flow.
It added: “Several cost-saving initiatives were implemented, including scaling back significantly on decoder subsidies (-46% YoY or ZAR1.3 billion), and reducing selling, general, and administrative (SG&A) costs by ZAR500 million. These interventions enabled the Rest of Africa business to increase trading profit by 48% YoY to ZAR1.3 billion.”
