Broadcasting giant, Multichoice has decided to increase the price of its packages in Nigeria just days after the company experienced a substantial financial loss. The company recently lost $72m as seen in its Q3 report for 2023. Shortly after, MultiChoice’s offerings shot up as high as 20%.
As reported a few weeks back, the currency debacle in Nigeria and power issues in South Africa made operating in the country a complex challenge for the broadcasting company.
To elaborate, the issue Multichoice faced in Nigeria was the result of a decision in June to allow the Naira to trade more freely against the dollar, bringing about a 40% deflation.
The company was then forced to reevaluate inter-group loans, resulting in foreign exchange losses. However, Multichoice noted that it enjoyed significant expansion through the addition of 1.4 million new customers in the year under review.
A source close to the story revealed to the Punch that the currency issues in Nigeria spurred other complications including including taxation and logistics, among others that eventually resulted in the loss.
“Yes. We have increased our rates. We buy content in dollars but earn in naira. If we take off a channel or stop acquiring content that our customers are used to, we will be slammed,” the source revealed to the Punch.
“We buy diesel. We pay taxes. Even before this year, with the dollar and fuel subsidy removal. We pay billions in licensing fees. We operate several offices. We have to pay staff,” the source added.
Source: BI
