MultiChoice reports N196.3 bn in subscription revenue from Nigeria

South African-based pay-TV operator MultiChoice Group’s full-year 2022 results showed Nigeria leads the Rest of Africa (RoA) in the percentage of subscription revenue and y-o-y subscription growth.

The result revealed that Nigeria ranked first with y-o-y subscription growth of 11% and 43% of total subscription revenue in full-year 2022 compared with Kenya, Zambia and Angola.

The company said it generated a subscription revenue of ZAR 7.1 billion ($475.5 million) from Nigeria alone representing a 5% increase year on year. It reported subscription revenues of ZAR6.8 billion in the same period last year.

Since MultiChoice receives revenue from Nigeria in naira, the actual amount received is N196.3 billion which the company converted at ZAR27.66 (or N412.9).

MultiChoice subscription revenue excludes revenue from hardware sales, advertising revenue, and other revenues.

Nigeria accounted for 43% of the total revenue from its Rest of Africa (ROA) operations without South Africa.

The company also kept away ZAR600 million in relation to its tax audit with the Federal Inland Revenue Service.

The growth was on the back of regionalization, which produced positive results to unlock market potential and agreement with FIRS to postpone court challenges and commence tax audits.

Also, the popularity of local content like Big Brother Naija had a massive impact on the performance of the RoA operations.

The CEO of MultiChoice Group, Calvo Mawela said: “Reduced losses in the Rest of Africa (RoA), a rebound in advertising revenues, and a continued focus on cost containment enabled us to absorb the R1.1bn ($74.5 million) impact of a normalisation in content costs as live sport returned and we resumed our local content production post the COVID-19 lockdowns”.

MultiChoice Group posted a trading profit of ZAR 10.3b billion or $689 million for the year ended March 31, 2022, rising marginally by 0.4% over what it recorded the previous year.