{"id":406499,"date":"2020-06-10T14:20:29","date_gmt":"2020-06-10T12:20:29","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=406499"},"modified":"2020-06-10T14:20:29","modified_gmt":"2020-06-10T12:20:29","slug":"heres-how-much-money-multichoice-makes-per-subscriber-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/media\/406499\/heres-how-much-money-multichoice-makes-per-subscriber-2\/","title":{"rendered":"Here\u2019s how much money MultiChoice makes per subscriber"},"content":{"rendered":"<p>The MultiChoice Group (MCG) has released its financial results for the full-year 31 March 2020.<\/p>\n<p>The group reported a 38% growth in core headline earnings to R2.5 billion, with consolidated free cash flow increasing by 59% to R5.2 billion, driven mainly by an improvement in the trading results from the Rest of Africa.<\/p>\n<p>Revenue was up 3% to R51.4 billion and included R42.8 billion in subscription revenue which increased 4% YoY.<\/p>\n<p>The group said that it added 900,000 90-day active subscribers, representing 5% growth year-on-year (YoY).<\/p>\n<p>This took the overall subscriber base to 19.5 million households, split between 8.4 million households in South Africa and 11.1 million households in the Rest of Africa.<\/p>\n<p><strong>South Africa<\/strong><\/p>\n<p>MultiChoice said that its South African business delivered solid results, reporting subscriber growth of 6% YoY or 500,000 subscribers on a 90-day active basis.<\/p>\n<p>&#8220;The impact of Covid-19 and the associated lockdown saw an uplift in subscribers towards the end of March,&#8221; it said.<\/p>\n<p>&#8220;The ongoing change in subscriber mix towards the mass market, combined with the pricing strategy, resulted in monthly average revenue per user (ARPU) <strong>declining 4% from R302 to R290.&#8221;<\/strong><\/p>\n<p>The group calculates ARPU by dividing average monthly subscription fee revenue for the period.<\/p>\n<p>The subscription fee revenue includes BoxOffice rental income but excludes decoder insurance premiums and reconnection fees.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Multichoice.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-406503\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Multichoice.png\" alt=\"\" width=\"900\" height=\"841\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Multichoice.png 591w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/06\/Multichoice-300x280.png 300w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n<p>Despite tight cost controls, Multichoice said that trading profit increased only 1% YoY due to muted revenue growth and the cost impact of broadcasting three major sporting events in the same financial year.<\/p>\n<p>This included the broadcast of the ICC Cricket World Cup (CWC), the Africa Cup of Nations (AFCON) and the Rugby World Cup (RWC) on SuperSport.<\/p>\n<p>MultiChoice added that connected video users on both the DStv Now and Showmax platforms continue to grow as online consumption increases.<\/p>\n<p>To position the business for the future, leverage the group\u2019s scale and enhance the product ecosystem by providing access to a wider variety of content, the group recently concluded distribution agreements with two major international Subscription Video on Demand (SVOD) providers,&#8221; it said.<\/p>\n<p>&#8220;Showmax also commenced the trialling of sport to subscribers with positive early user engagement.&#8221;<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/mobile\/406423\/uber-cash-launches-in-south-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">Uber Cash launches in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The MultiChoice Group (MCG) has released its financial results for the full-year 31 March 2020.<\/p>\n","protected":false},"author":10,"featured_media":136627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5554],"tags":[26],"class_list":["post-406499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/406499","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=406499"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/406499\/revisions"}],"predecessor-version":[{"id":406511,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/406499\/revisions\/406511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/136627"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=406499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=406499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=406499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}