MultiChoice Group Increases Its Subscription Numbers - Says Calvo Mawela, Group CEO
The MultiChoice Group (MCG) seems to have held up well in a harsh consumer climate by, according to reports, delivering subscriber growth of 6% YOY or 0.5 million linear pay-TV subscribers on a 90-day active basis. The 90-day active linear pay-TV subscriber base climbed by 1.4 million, bringing the total to 20.9 million homes.
The above mentioned includes 8.9 million homes in South Africa and 11.9 million in the rest of Africa. A remarkable achievement to have obtained despite production stoppages and travel restrictions brought about by the pandemic.
Calvo Mawela, chief executive officer of MCG, says, "this is a 7 per cent year-on-year (YOY) increase, driven by increased consumer demand for video entertainment products, continued mass-market penetration, and an improvement in Southern Africa's electricity problems. The pandemic taught the Group more about what is possible, having started the year with significant interruptions in programming schedules, poor macroeconomic prospects for several markets, and dramatically weaker currencies. The Group, together with staff, met all of its critical performance criteria while also providing greater value to shareholders by declaring a US$ 184.1 million dividend.
The greater profitability can be attributed to three important sporting events not expensed in the previous period. A strong focus on the Group's cost optimisation program, lower operating costs in a COVID-19 environment, and a temporary shift in content expenses were possible due to the sporting event delays. The business maintained its differentiating strategy by increasing its investment in local content, producing 19 per cent more content than the previous year - a total of 4 567 hours. As a result, the total local content collection currently reaches 62 000 hours. Local content accounted for 42 per cent of the company's general entertainment spending, and it is on track to meet its 45 per cent target by FY22.
The pay-tv provider now has a highly engaged member base of 20.9 million, with an average of five persons per home, approximately reaching 100 million people. MultiChoice has a chance to improve its revenue prospect by continuing to expand the entertainment ecosystem with innovative solutions for their consumers'.