In just one financial year, Multichoice Nigeria has recorded N133.2 billion in revenue from subscriptions representing a 24.8 per cent growth according to the Group’s financial results for the full year ended March 31, 2019. The results were released in South Africa this week.
Multichoice Nigeria generated R5.3 billion in the year under review amounting to N133.2 billion using a current exchange conversion rate of N25.14 to R1. This is a
24.8 per cent revenue growth for the 2019 financial year over the previous year of N100 billion (R4 billion.
Nigeria’s market remains strategic to the South African payTV operator as Africa’s largest economy accounted for 10.6 per cent of the Group’s total R50 billion revenue for the year.
According to the report, the Group recorded outstanding growth across Africa where it has steadily become a giant in satellite payTV. Total subscriptions grew by 12 per cent year-on-year to hit 15.1 million across the continent.
“Our growth is exceptionally pleasing, especially in the current economic climate, and a clear indication that our strategy is working. We continue to believe in the growing appetite for video entertainment across the African continent,” said Multichoice Group CEO, Calvo Mawela.
In Nigeria, the payTV giant said increase in revenue has resulted from growth in subscriber base and increase in the price of some of its subscription packages over which it is currently at war in with the Federal Competition and Consumer Protection Commission (FCCPC).
The FCCPC is in court with Multichoice Nigeria over its price increment which the commission regards as outrageous. Multichoice Nigeria has blamed the increase on rising cost of delivering services including heavy cost of equipment maintenance and constant reliance on fuel generators to keep service going.
“The cost of doing business in Nigeria is five times the cost of doing same business elsewhere on the continent,” said a senior official of Multichoice Nigeria in Lagos.