MultiChoice’s latest annual results are in, and one of the major highlights is the impressive performance of its streaming service, Showmax. The company has released its financial figures for the year ended March 31, 2024, and Showmax’s FY2024 performance is turning heads.
Hitting the Billion-Rand Mark
Showmax generated a staggering R1 billion in revenue during the 2024 financial year, marking a 22% increase from the previous year’s figures. This milestone achievement clearly showcases the growing appetite for streaming services in the region and Showmax’s ability to capitalize on this trend.
According to MultiChoice (thanks to MyBroadband), the 2024 financial year was a pivotal one for Showmax. After officially concluding its partnership with Comcast in April 2023, the long-awaited relaunch of the streaming platform took place in February 2024. This strategic move appears to have paid off handsomely, with Showmax’s revenue soaring from approximately R820 million in FY2023 to a cool R1 billion in FY2024.
While Showmax’s trading losses increased to R2.6 billion, MultiChoice noted that this figure fell within the expected range of R3 billion to R4 billion. The company attributed this increase to operational expenditure and depreciation shifting into the FY2025 financial year, given the launch of Showmax towards the end of FY2024.
MultiChoice expressed enthusiasm about Showmax’s performance post-relaunch, stating that the growth compensated for the termination of its higher-average revenue per user (ARPU) Showmax Pro service. “Showmax, which relaunched in February, is showing encouraging early traction,” said MultiChoice. “It delivered record single-month growth in March 2024, with the paying subscriber base growing 16% from the migrated base at relaunch to year-end.”
Subscriber Figures and Future Projections
To that end, MultiChoice highlighted several impressive figures related to Showmax’s subscriber base post-relaunch. Notably, 100% of subscribers had migrated to the new platform and subscriptions, with over 88% of those who migrated remaining active and paying for the service.
Looking ahead, former MultiChoice connected video boss Yolisa Phahle expressed ambitious targets for Showmax. In late May 2023, Phahle stated that Showmax aimed to generate revenue of more than $1 billion after five years, with a trading profit breakeven target in the 2027 financial year. Additionally, the company is targeting EBITDA margins of 25% and free cash flow margins of around 20% at scale.
With Africa being touted as the final frontier for SVOD (Subscription Video On Demand) growth, Showmax is positioning itself as the leading streaming platform on the continent with its revamped Showmax 2.0 launch.
As the streaming wars continue to gain steam globally, MultiChoice’s commitment to Showmax appears to be paying dividends, positioning the company as a formidable player in the African market. With its impressive FY2024 performance and ambitious future targets, Showmax is undoubtedly one to watch in the competitive streaming market.
