MultiChoice grows revenue by 20% for the year ending 31 March 2013; tops 6.7 million subscribers across Africa.

The satellite pay-TV business MultiChoice has grown its revenue by 20% to R30,3 billion for the year ending on 31 March 2013 and has increased its subscriber base by 1,1 million new subscribers to now top 6,7 million subscribers across 48 markets across Africa.

The media group Naspers which owns MultiChoice released its financial report for the financial year ending 31 March 2013, with the pay-TV business side which achieved 18% growth in trading profit to R7,6 billion for the year.

Naspers says the pay-TV trading profit was somewhat weighed down by the company’s increased investment in digital terrestrial television (DTT), as well as investments in local content production. MultiChoice paid R1,6 billion to subsidise decoders.

Naspers’ pay-TV business now produces more than 6 000 hours per year at a cost of R1 billion in local TV content in South Africa, Kenya and Nigeria. Seven further locally programmed TV channels were launched on DStv in the past financial year.

MultiChoice’s GOtv brand for digital terrestrial television is now operational in 8 countries across Africa and reaches 376 000 households. MultiChoice’s DStv Compact bouquet accounted for 38% of growth and the base of DStv PVR decoder users grew by 26% to 956 000.

DStv Compact subscribers now comprise 37% of all DStv subscribers, DStv Premium 34% and the rest is 27%.

In South Africa 4,451 million households now have access to DStv. That is up from 3,981 million a year before.

Meanwhile the average revenue per DStv subscriber increased from R298 per month to R307 per month, although MultiChoice sees that decreasing in the future as the pay-TV business looks to aggressively court the lower subscriber base.

Programming cost increased by 15%. Naspers cites increasing regulatory pressures, and that competition is growing, especially from the online sphere.

MultiChoice will continue to extends its online services, and foresees continued subscriber growth.Naspers warns that more regulation in the pay-TV market “may stifle innovation”.

SOURCE: TV with Thinus