MultiChoice Nigeria - Afrikan Heroes

MultiChoice Bemoans Forex Losses as Core Remains Stable

June 9, 2023

MultiChoice CEO in South Africa Nyiko Shiburi

Africa’s leading entertainment giant Multichoice has said that difficulty in repatriating money from Nigeria, coupled with the weak South African economy, will hurt the Group’s full-year financial results, though the business is still expected to eke out a slight improvement in core headline earnings per share (Heps).

In a trading statement on Thursday, MultiChoice said trading profit is expected to be between 0% and 5% lower, tempered by factors such as increased decoder subsidies aimed at accelerating subscriber growth.

For the 12 months to end-March, the group benefited from strong subscriber growth, a return to profitability in the “rest of Africa” segment and cost savings through a cost-containment programme that exceeded targets.

Trading profit will decline by as much as 5% compared to the R10.3-billion reported a year ago

But a “challenging” South African environment and increased investment in decoder subsidies and marketing related to the 2022 Fifa World Cup eroded those gains.

MultiChoice has long regarded trading profit and core Heps as the most appropriate measures of operating performance as they adjust for non-recurring and non-operational items.

It said trading profit will decline by as much as 5% compared to the R10.3-billion reported a year ago and includes costs associated with the partnership with Nasdaq-listed Comcast and its subsidiary NBCUniversal announced earlier this year. On a constant-currency basis, trading profit is expected to be between 3% and 8% higher.

Core Heps will be between 0% and 4% higher than 2022’s R8.14 and includes realised foreign exchange gains and losses but excludes the impact of Nigerian cash-extraction losses, which the group did not quantify specifically in the trading update.

Heps, a closely watched financial metric among South African investors, will be severely impacted by what the group will be hoping are once-offs: higher unrealised forex losses (including transponder leases) stemming from the sharp deterioration in the value of the rand against the US dollar and an increase in forex losses associated with the repatriation of cash from Nigeria.

In addition to the above, earnings per share (EPS) will also be impacted by an impairment at sports betting company KingMakers Group related to an expected further deterioration in the value of Nigeria’s naira. EPS will decline by as much as R11.42, from a positive R3.18 before. Heps will be as much as R6.90 lower, from a positive R3.81 before, splashing the income statement in red ink.

MultiChoice Group shares closed down 4.3% in Johannesburg on Thursday following the publication of the trading statement. They have lost 23% over the past 12 months, to Wednesday’s close.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

MultiChoice Denies It Has to Pay $2.2-Billion Tax Backlog to Nigeria

August 30, 2021

Africa’s leading entertainment giant, Multichoice has denied speculations making the rounds that it has been ordered by a Nigerian appeal tribunal to pay 50% of an N1.8-trillion ($4.4-billion) disputed tax backlog imposed on it by Nigeria’s federal tax agency, the Federal Inland Revenue Service (FIRS).

According to the reports, MultiChoice had to pay $2.2-billion as a deposit and the condition of the satellite pay-TV company’s case being heard by authorities, the Federal Inland Revenue Service (FIRS) said in an email statement over the week.

However, MultiChoice Nigeria replied in a statement that the direction issued by the tribunal does not legally compel the company to pay 50% of N1.8-trillion, being half of the disputed tax assessment which is under appeal.

“The direction issued by the TAT in accordance with paragraph 15(7) of the Fifth Schedule to the FIRS Establishment Act requires Multichoice Nigeria to deposit with FIRS an amount equal to the tax paid by Multichoice Nigeria in the preceding year of assessment or one half of the disputed tax assessment under appeal, whichever is the lesser amount plus 10%,” FIRS says in the statement.

“The lesser amount is the tax paid by Multichoice Nigeria in the previous assessed year which is substantially less than the disputed assessment.”

MultiChoice says that it continues to engage with FIRS in an attempt to resolve the issue.

It could be recalled that FIRS instructed banks in the country to freeze the accounts of MultiChoice’s subsidiary in Nigeria for allegedly breaching agreements and denying access to their records for auditing.

“It was discovered that the companies persistently breached all agreements and undertakings with the Service, they would not promptly respond to correspondences, they lacked data integrity and are not transparent as they continually deny FIRS access to their records,” FIRS said at the time.

MultiChoice responded that despite the crackdown by FIRS, its operations in Nigeria were continuing as normal.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigeria Freezes MultiChoice Accounts, Demands N1.8 Trillion

July 8, 2021

Nigeria’s Federal Inland Revenue Service has instructed banks to freeze the accounts of media entertainment firm MultiChoice Africa and its Nigerian subsidiary for breaching agreements and denying access to their records for auditing. Multichoice Nigeria is a subsidiary of South African-headquartered MultiChoice Group, which provides television and other entertainment services across Africa.

The banks would have to recover ₦1.8-trillion naira (R63-billion) in outstanding tax obligations from MultiChoice Africa and MultiChoice Nigeria, the Federal Inland Revenue Service (Firs) said in a statement.

“It was discovered that the companies persistently breached all agreements and undertakings with the service, they would not promptly respond to correspondences, they lacked data integrity, and are not transparent as they continually deny Firs access to their records,” the tax agency said.

MultiChoice Group said it would issue a statement soon. A representative of its Nigerian subsidiary could not immediately be reached by phone for comment.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

MultiChoice Slashes Prices on DStv, GOtv Decoders

January 31, 2021

Africa’s leading video entertainment provider, MultiChoice Nigeria, has announced a price slash on its DStv and GOtv decoders starting Monday, February 1st, 2021. The price slash will see the DStv HD decoder, dish kit with Compact package subscription drop from N18,600 to N9,900 on Confam package, while GOtv decoder, GOtennae with GOtv Jolli package subscription will go from N8,400 to N6,900.

Chief Customer Officer, MultiChoice Nigeria, Martin Mabutho, — Chief Customer Officer, MultiChoice Nigeria, Martin Mabutho

DStv Confam is one of two recently improved DStv packages specially designed for the Nigerian family. With over 120 channels, DStv Confam offers the best of family time with international entertainment, kids, news and sports boasting of a range of channels including SuperSport La Liga, CBS Reality, FOX, BET and Cartoon Network.

GOtv Jolli, also a recently improved package on the DTT offering, offers a broad selection of over 68 local and international channels to choose from. Some of the channels available include SuperSport Football, ROK 2, Telemundo, FOX, Davinci Learning and Africa News.

Speaking at a virtual media briefing held on Friday, 29 January, Chief Customer Officer, MultiChoice Nigeria, Martin Mabutho, explained that the price slash is part of MultiChoice’s long line of efforts to lessen the economic impact of COVID on customers and a reflection of its commitment to making quality entertainment more accessible to Nigerians.

“With this discount, we are lowering the entry barrier for new customers to get a DStv or GOtv decoder as staying connected to credible information and other quality programming can be comforting for many families during these trying times,” said Mabutho. Mabutho also listed some of the company’s relief strategies deployed during the first wave of the pandemic which includes cash donations of N200 million and N50 million to the Federal Government and Lagos State Government respectively, N400 million to the creative industry, whose professionals experienced disruptions in productions; donation of 30,000 Personal Protective Equipment and 30,000 face masks to hospitals and Non-Governmental Organisations as well as an approved inventory worth over N550m highlighting NCDC’s COVID-19 helplines and PSA materials on over 10 channels on DStv and GOtv.

“In addition to the discount we are currently running our DStv Step-Up offer which gives our customers on lower packages an opportunity to experience programming on higher packages, and a GOtv Max offer which sees customers on Jolli and Jinja enjoy a special discount of N2,999 instead of N3,600 per month,” Mabutho added. The discounted DStv and GOtv bundle offer will be available from Monday, February 1st 2021 for a limited time only.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

DStv Under Fire in Africa over ‘Ancient Content’, Repeats

May 4, 2020

Martin Mabutho, the chief commercial officer of MultiChoice Nigeria

Cable TV provider, Multichoice has come under fire across Africa over ’vintage content’ and repetitive repeats of broadcasts on DStv channels. In South Africa, an online petition on change.org so far 189,385 people of the 200,000 target have signed, demanding “DStv to give South African subscribers a payment break or decrease prices during Covid-19.”

South African subscribers accuse DStv of discounting subscription charges in other countries like Nigeria while ignoring their biggest market. There are 8.2 million DStv subscribers in South Africa and 10.7 million subscribers from the rest of Africa raking in 25.7bn rand (about Shs 5.1 trillion) in revenue in the first quarter of FY 2019/20.

Nigeria is DStv’s biggest market outside South Africa – contributing about 33 per cent of the total subscription revenue for rest of Africa (RoA) in 2018. Kenya and Zambia both contributed 12 per cent each while other markets contributed 43 per cent. In the first half of FY 2019/20, Nigeria contributed 38 per cent, Kenya 10 per cent and Zambia at 9 per cent and the rest of Africa 42 per cent according to figures from MultiChoice Group.

Martin Mabutho, the chief commercial officer of MultiChoice Nigeria is quoted as saying that the discounts are a way to thank their consumers for consistent loyalty.“The discounts given are in line with MultiChoice’s mission to provide quality content and a chance for their loyal and valued customer base to experience a wider range of content on higher packages.”

DStv and GOtv subscribers in Nigeria have been granted up to 44 per cent and 74 per cent respectively – in a bid to ease the impact of the ongoing socio-economic crisis due to the coronavirus outbreak. While South Africans think DStv is discounting in the rest of Africa other than South Africa, Ugandan subscribers are complaining of being treated unfairly by DStv. “Help me understand why @DStv discounts box office in SA and not the rest of Africa @DStv_Kenya @DStvUganda we must be children of a lesser God,” Henry Rugamba, a Ugandan wrote on Twitter.

“You just opened pandora’s box. As a stay home incentive box office is discounted in [South Africa] but not for the rest of Africa is that is really fair and appreciative of their continental clients. This is indefensible and a clear show of their respect for us the non-SA customers,” Rugamba added. In response, DStv said they operate under different economic markets hence the different discount parameters.

Live sport and entertainment events including football, athletics, basketball were DStv’s selling points. But with the Covid-19 outbreak, nearly all sports events were banned across the world due to the risk of exposure among the players and supporters. With the majority of people now staying home, most subscribers have now more time for television, especially during the lockdowns. Many subscribers have expressed their displeasure at DStv for continuing to charge premium rates minus live sports or events. A #DSTVMustFall hashtag has been trending for a couple of weeks calling on DStv to reduce their subscription charges. For those in need of fresh movies, DStv says there is an option to watch the latest movies at Shs 8,000 on Box Office and Catch Up for series that are broadcast on almost the same day they are released worldwide.

“Drop the price. There’s a huge difference between Netflix yearly price and DStv premium price. So we demand dstv prices to drop not only during the pandemic, wrote Michael Ramalivhana on change.org. “You repeat movies. You play 1900 movies on top of that you charge us a lot of money.” While Nick Steen from South Africa, said “getting more and more expensive for less and less value. Gym’s and many others have cut prices when they can’t deliver the expected service. DStv must do the same.”

“These guys @DStv should do a brand change to #DSRTV i.e. Repeat TV old series Top Gear is 7 years old Friends ended in 2004, old movies #beverlyHillsCop 1984 we need to be liberated from this theft @DStvUganda @UCC_ED #SaveUS,” wrote Rugamba. Multichoice Uganda in a statement explained why they are not considering subscription discounts.

“As much as possible, MultiChoice consistently strives to absorb its operating costs possible to bring our customers the best value. Although we are unable to give free subscriptions at this time, we have launched the “DStv Tweyanziza” and GOtv “Mwebale Nnyo” offers for our subscribers with effect from 20th April 2020.” the statement reads.

“These offers are our gestures to give our customers even more value during this difficult time. We are giving DStv and GOtv customers access to all the channels available on the next higher package from their current one if they pay their current subscription in full. We know times are tough and we will continue to strive to add value to our subscribers at a time when they need it.” it added.

On repeated content, Multichoice acknowledged their subscriber discontentment saying they are “busy working with our channel partners on reducing the number of repeats and offering more fresh content on DStv. While we won’t do away with repeats entirely, our plan is to cut down where we can and bring you more fresh content. We’ve already implemented some changes to some of our channels to improve our customers’ viewing experience. For example, M-Net Edge and M-Net 101 which show series were merged into one channel to reduce on the series repeats.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry