By Lehlohonolo Lehana.
MultiChoice Group expects a sharp decline in reported trading profit for the year ended 31 March as the JSE-listed broadcaster blames a range of factors.
This was revealed in a trading statement MultiChoice released on Thursday, 5 June 2025, about its financial results for the past financial year.
It stated that the current period has seen the continuation of unprecedented financial disruption for economies, corporations, and consumers across sub-Saharan Africa.
This was due to several macroeconomic factors, including weaker average exchange rates, elevated inflation and interest rates, and power supply challenges.
MultiChoice also had to face the impact of structural industry changes in video entertainment, such as the rise of piracy, streaming services, and social media.
MultiChoice also continued to invest in its streaming service, Showmax, which had a material impact on the group’s performance.
“The group has acted decisively to counter these headwinds by focusing on key areas within its control,” MultiChoice said.
This includes maintaining an inflationary pricing discipline, growing new revenue streams, and driving further efficiencies to manage costs and cash flows effectively.
The headwinds in South Africa and the rest of Africa led to a decline in MultiChoice Group’s operating profit of between 47% and 51%.
This means that the group expects its operating profit to fall from R7.9 billion to between R3.9 billion and R4.2 billion.
Although the group’s operating profit showed a significant deterioration, MultiChoice did report an improvement in its net profit.
The financial struggles come as MultiChoice faces a takeover bid from Groupe Canal+, which has offered R125 per share, valuing the deal at about R55 billion. Canal+, the leading pay-TV operator in French-speaking Africa, aims to create a pan-African media giant by combining its 26 million subscribers with MultiChoice’s base.
The deal, initially set to close in April 2025 but delayed to October 2025, requires navigating South Africa’s regulatory restrictions on foreign ownership of broadcast licenses, which cap foreign voting rights at 20%. To comply, Canal+ plans to spin off MultiChoice’s South African broadcasting licence into a separate entity, with 51% economic interest held by local shareholders.
MultiChoice is set to release its full 2025 financial results on June 11, 2025, providing further insight into its performance and strategic responses.