MultiChoice has recorded a notable decline in its customer base, especially in Nigeria. The company’s financial report for the fiscal year ending on March 31, 2024, indicated an 18% decrease in active subscribers in Nigeria.
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The action immediately highlights the reduction in disposable income among Nigerians due to the challenging economic conditions, the depreciation of the naira, removal of fuel subsidies, and escalating inflation rates.
“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 resulted in a 9% decline in the group’s overall active subscribers.
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“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.
According to MultiChoice, the reviewed period represents the most challenging macroeconomic conditions for its ROA business since 2016, characterized by high double-digit inflation across many of the group’s key markets, which has exerted significant pressure on customer purchasing power.
“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 added.
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