MultiChoice Group faces major problems after losing money and customers. The pay-TV company lost 1.2 million viewers last year. Company leaders say tough times hit their business hard. African economies struggled and people had less money to spend. Streaming services like Netflix also took away customers.
The company lost 2.8 million viewers over two years. Currency changes cost them 10.2 billion rand when African money became worth less. MultiChoice tried to fix things by cutting costs and raising prices. They saved 3.7 billion rand through these changes. The company still lost money despite these efforts.
Cash flow became a serious worry for the business. They spent 500 million rand more than they earned. Last year they actually made 600 million rand. The company paid back loans early and sold part of their insurance business. They kept 5.1 billion rand in cash and can borrow 3 billion more if needed.
Showmax streaming service grew by 44 percent and added more users. This growth could not make up for other losses across the company. Total revenue fell 9 percent to 50.8 billion rand. French company Groupe Canal wants to buy MultiChoice for 125 rand per share.
The company lost 2.8 million viewers over two years. Currency changes cost them 10.2 billion rand when African money became worth less. MultiChoice tried to fix things by cutting costs and raising prices. They saved 3.7 billion rand through these changes. The company still lost money despite these efforts.
Cash flow became a serious worry for the business. They spent 500 million rand more than they earned. Last year they actually made 600 million rand. The company paid back loans early and sold part of their insurance business. They kept 5.1 billion rand in cash and can borrow 3 billion more if needed.
Showmax streaming service grew by 44 percent and added more users. This growth could not make up for other losses across the company. Total revenue fell 9 percent to 50.8 billion rand. French company Groupe Canal wants to buy MultiChoice for 125 rand per share.
