Multichoice is relying on its sports betting division Kingmakers for growth as DSTV pay-TV subscribers decline, with Kingmakers seeing a 37% user increase and 26% revenue growth in Nigeria.
Multichoice, the pay-TV operator, is increasingly turning to its sports betting division, Kingmakers, for growth as its traditional DStv and GOtv businesses experience a decline in subscribers. The company's recent financial results for the year ended March 31, 2024, revealed a 37% increase in users of its Kingmakers betting platform in Nigeria, accompanied by a 26% year-on-year revenue growth from the online gaming business in constant currency terms.
This surge in the betting business comes as a reprieve for Multichoice, whose pay-TV operations suffered an 18% decline in DStv and GOtv subscribers, partly due to economic hardship and three consecutive price increments implemented within the last year. The company reported a loss of 4.148 billion rands ($224.87 million) for the fiscal year, an increase from the previous year's loss of 2.9 billion rands ($157.21 million), attributing it to foreign exchange losses in several African markets, including Nigeria.
The growth in the betting segment indicates that more Nigerians are turning to gambling as a means of generating additional income amid difficult economic conditions and rising inflation. Multichoice had acquired a stake in the Nigerian online sports betting company BetKing, now rebranded as Kingmakers, in 2020 and subsequently increased its shareholding to 49% in 2021, aiming to leverage its extensive sports coverage to boost the betting business.
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