{"id":353083,"date":"2019-11-11T16:28:45","date_gmt":"2019-11-11T14:28:45","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=353083"},"modified":"2019-11-11T16:28:45","modified_gmt":"2019-11-11T14:28:45","slug":"heres-how-much-money-multichoice-makes-per-subscriber","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/media\/353083\/heres-how-much-money-multichoice-makes-per-subscriber\/","title":{"rendered":"Here’s how much money MultiChoice makes per subscriber"},"content":{"rendered":"

The MultiChoice Group (MCG) has released its interim report for the period ended 30 September 2019.<\/p>\n

The group said that it added 1.2 million 90-day active subscribers, representing 7% year-on-year (YoY) growth, taking the overall 90-day active subscriber base to 18.9 million households at 30 September 2019.<\/p>\n

Revenue was up 4% (3% organic) to R25.7 billion, including subscription revenue of R21.2 billion, which grew at similar rates.<\/p>\n

Core headline earnings were up 24% on the prior period at R1.9 billion, despite the impact of the additional 5% share in SA allocated to the group’s BEE scheme, Phuthuma Nathi in March 2019.<\/p>\n

The group said that top-line momentum was affected by the group’s strategic decision not to increase Premium prices in South Africa.<\/p>\n

It added that hardware sales and advertising revenues were lower due to the one-off prior year events, while macro-headwinds in certain markets affected disposable income and thus consumer demand.<\/p>\n

The DStv Satellite Television service provider listed on the Johannesburg Stock Exchange (JSE) at the end of February, having been spun off from Naspers.<\/p>\n

MultiChoice delivers local and international entertainment and sport content to around 14-million households in 50 African markets. It also includes the production of over 4,500 hours of local content in 10 studios across Africa.<\/p>\n

Having opened trading at a price of R95 on the 27 February, shares in MultiChoice reached R131.81 in afternoon trade on the JSE.<\/p>\n

South Africa<\/strong><\/p>\n

The South African business delivered solid results, reporting subscriber growth of 7% YoY or 600,000 subscribers on a 90-day active basis.<\/p>\n

The group said that it now has 7,675,000 subscribers in the country – although this figure includes DStv, Showmax and other subscription services.<\/p>\n

The Average Revenue Per User (ARPU) per month for South Africa was R292 in South Africa<\/strong>, compared to R111 in the Rest of Africa when looking at a 90-day active subscriber basis.<\/p>\n

The group calculates ARPU by dividing average monthly subscription fee revenue for the period.<\/p>\n

The subscription fee revenue includes BoxOffice rental income but excludes decoder insurance premiums and reconnection fees.<\/p>\n

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The results show that the ARPU for premium subscribers declined from\u00a0 R597 to R581 – in line with a 3% decrease in Premium subscribers.<\/p>\n

By comparison, the group showed growth in its mass (R88 per user) and mid-market (R301 users) accounts.<\/p>\n

“We are pleased with our performance and our ability to navigate a very challenging economic climate,” said Group CEO Calvo Mawela<\/p>\n

“The group\u2019s cost-saving objectives for FY20 remain on track with R700 million in costs eliminated from the base during 1H FY20, mainly as a result of the continued shift in spend towards more cost-effective local content, innovation in customer care, contract renegotiations, hardware savings and the introduction of platform efficiencies.”<\/p>\n

\n

Read: SABC streaming services to target mobile phone users<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The MultiChoice Group (MCG) has released its interim report for the period ended 30 September 2019.<\/p>\n","protected":false},"author":10,"featured_media":243829,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5554],"tags":[78,26,1253],"class_list":["post-353083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media","tag-dstv","tag-headline","tag-multichoice"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=353083"}],"version-history":[{"count":15,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353083\/revisions"}],"predecessor-version":[{"id":353125,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/353083\/revisions\/353125"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/243829"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=353083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=353083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=353083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}