MultiChoice, a prominent entertainment provider, has reported a significant decline in its subscriber base, particularly in Nigeria, for the fiscal year ending on March 31, 2024. The company revealed an 18% drop in active subscribers in Nigeria, attributing this decline to severe economic challenges faced by consumers.
The Nigerian economy has been grappling with persistent issues such as the removal of fuel subsidies, sharp depreciation of the naira (with the official rate halving in value), inflation soaring to over 30%, and increased emigration of the middle and upper classes. These factors collectively contributed to a challenging economic environment where many Nigerians had to prioritize spending on basic necessities over discretionary items like entertainment.
MultiChoice highlighted that these economic pressures led to a 9% decline in the group’s total active subscribers, with a 13% decline specifically in the Rest of Africa (ROA) business. In contrast, the South African business showed more resilience with a 5% decline in subscribers.
The company noted that the reviewed period marked the toughest macroeconomic conditions for its ROA business since 2016, characterized by high double-digit inflation across many core markets. Exchange rate volatility also reached extreme levels, impacting customer spending power significantly.
Despite these challenges, MultiChoice remains committed to adapting its strategies to navigate the economic landscape and continue serving its customer base across Africa effectively.