Multichoice Nigeria, pay-tv operator, raked in N133.2 billion in revenue from subscriptions in the last one year, according to the Group’s financial results for the full year ended March 31, 2019. According to the results released to the Group’s investors last week, the Nigeria operating unit generated R5.3 billion in the year under review, which amounts to N133.2 billion when converted at the current exchange rate of N25.14 to R1, according to Newtelegraph.
The revenue from Nigeria in the 2019 financial year represented 24.8 per cent growth when compared with N100 billion (R4 billion) recorded in the previous financial year. The country accounted for 10.6 per cent of the Group’s total revenue for the year, which stood at R50 billion. Multichoice attributed the increase in revenue to growth in subscriber base and increase in the price of some of its subscription packages.
The results showed that Multichoice Nigeria increased its premium package price by seven per cent in the year under review, while the price of its mid package was increased by eight per cent. However, the company said it reduced the price of its lowest package targeted at mass subscribers by three per cent in the same period.
In terms of number of household subscribers, Nigeria was categorised among other operating units of the Group in Africa, which include Angola, Zambia, Kenya, Uganda and Mozambique to become a separate entity known as Rest of Africa (RoA), aside South Africa. According to the report, the Group’s total subscriptions grew by 12 per cent year-on-year to hit 15.1 million. South Africa accounted for 7.4 million of the total subscriptions while the RoA had 7.7 million.
Commenting on the result, Calvo Mawela, Multichoice Group CEO, said the Group was able to increase revenue by six per cent year-on-year and trading profit by 11 per cent to R7 billion. He added that Multichoice had also invested more in local content and stepped up production of local content to 4,600 hours.
“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,” he said.