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MultiChoice Reports 18% Decline in Nigerian Subscribers Amid Economic Downturn
Author Name
1/1/2035
MultiChoice has reported a significant decline in its subscriber base, particularly in Nigeria, according to the company's financial results for the year ending March 31, 2024. The report reveals an 18% drop in active subscribers in Nigeria, reflecting the impact of the country's challenging economic conditions.
The decrease in subscriptions underscores the shrinking disposable income among Nigerians due to a struggling economy, a sharp decline in the naira, the removal of fuel subsidies, and soaring inflation rates.
"The Nigerian economy and consumers faced persistent challenges through FY24 (Fiscal Year),"
MultiChoice stated.
"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%)."
The company's Return on Assets (ROA) from Nigeria dropped from 44% to 35%. This decline in the Nigerian subscriber base contributed to a 9% decline in the group's total 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 prioritize basic necessities over entertainment, while the South African business showed more resilience with a 5% decline,”
MultiChoice added.
The reviewed period is noted as the toughest set of macroeconomic conditions for MultiChoice's Rest of Africa (ROA) business since 2016, with high double-digit inflation in many of the group's core markets significantly pressuring customer spending power.
"The official and parallel naira exchange rates reached peaks of ₦1600:1USD and ₦1900:1USD respectively in February 2024, with several other African markets also experiencing extreme foreign exchange depreciation,"
MultiChoice stated.
