Broadband TV News: MultiChoice profits down 5%

Story from Broadband TV News:

Revenues for the relaunched Showmax streaming service increased by 22% for the South African pay-TV platform MultiChoice.

Subscriber numbers also increased by 16%, but total losses doubled in part because of the expense of bringing in the Peacock technology from partner Comcast.

Calvo Mawela, MultiChoice Group CEO said the company was seeing the results of a clear strategy to build an entertainment platform for Africa.

“While we are not alone in feeling the challenges of a weak consumer environment, I am proud of the speed and effectiveness of the team in implementing strategic actions to retain customers, safeguard cash generation and drive costs savings which surpassed our targets.”

Overall active subscribers declined by 9%, pulled back by a 13% decline in the Rest of Africa, with Nigeria, Angola and Zambia most affected.

This lead to a decline in group revenue of 5% to ZAR56.0bn.

The decline in active subscribers in South Africa was limited to 5%, leaving the base at 7.6 million households. Power outages – experienced on 275 days of the year – are one reason why subscriber levels are not increasing.

Showmax revenues for the year grew by 22%, while trading losses increased to ZAR2.6bn, below the expected range.

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