MultiChoice has experienced a notable decline in its subscriber base, especially in Nigeria. The company’s financial results for the fiscal year ending March 31, 2024, show an 18% decrease in active subscribers in Nigeria.
The action highlights the immediate reduction in disposable income among Nigerians, driven by the struggling economy, the naira’s depreciation, the elimination of fuel subsidies, and escalating inflation.
“The Nigerian economy and consumers faced persistent challenges through FY24 (Fiscal year), 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 (FY23: +13%),” MultiChoice said.
The company’s Return on Assets (ROA) from Nigeria has decreased from 44% to 35%. Additionally, the company noted that the drop in the ROA subscriber base caused a 9% decline in the group’s overall active subscribers.
“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 MultiChoice stated.
MultiChoice reported that the reviewed period represents the most challenging macroeconomic conditions for its ROA business since 2016, with significant double-digit inflation in many key markets severely impacting customers’ spending ability.
“The official and parallel naira exchange rates reached peaks of ₦1600:1USD and ₦1900:USD respectively in February 2024, with several other African markets also experiencing extreme foreign exchange depreciation,” MultiChoice said.
Please like, comment, share & follow our Instagram @beerparloormedia