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DSTV Increased subscription by 8.42% to N10,300! How do we respond?

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If you haven’t heard, DSTV just increased subscription to N10,300 for their premium bouquet. Based on this it is pretty obvious the entry of HiTv had all but increased the cost of pay tv. I blogged about it a while back and it’s a term I call negative competition.

Strange as it seems, it is still cheaper than the combined cost of N15,500 when HiTv was at their highs. At that time HitTv was N6,000 and DSTV 9,500. DSTV will rightly argue that their increase is just a “mere” N800 which is still N1,700 cheaper than it was back then.

READ MORE: MTN Nigeria: Accelerated growth in data revenue to buoy earnings despite soft macro conditions

The point therefore is sometimes competition don’t make sense when the players are very few and control a large portion of the product or service. If there wasn’t HiTv we probably still will be paying N10,300 with DSTV owning rights to the programs HiTv has and vice versa. The only way to stop all this exploitation is for the Government to pursue a rights sharing system between both players. That way HiTv will allow DSTV show programs on that they have a right to and vice versa. Therefore you really need not own both decoders which by all accounts is the case for most Nigerians. A situation I consider preposterous.

People should respond by directing their protest at content sharing and not at forcing one party to reduce price. That way you need not own 2 decoders and surely prices will crash and customer satisfaction will take center stage. I’m sure if it were HiTv that had most of the programs they will increase prices to. Recall that a their height their prices jumped almost 95% from N3,500 to N6000.

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See DSTV email confirming the increase below.

 

1 March 2011

Dear Valued Subscriber

RE: Annual subscription price increase for DStv

Please be advised that MultiChoice Nigeria annual subscription price increase will become effective 1 April 2011. In determining a price increase MultiChoice takes into account many factors including, and amongst others, the impact on the subscriber, operational costs, satellite lease costs, programming costs and efficiencies effected within the company.

Please see new DStv subscription pricing below:

Premium Bouquet: N9,500 to N10,300
Premium Bouquet + Asian: N11,500 to N12,420
Access Fee *: N1,200 to N1,800

* This applies in a case of Dual View installation.

However, for the first three months DStv will be discounting the new DStv Premium subscription price by N300 per month which means you will only pay N10,000 for April, May and June 2011 after which the full price of N10,300 will be billed. This initiative is being undertaken to relieve the pressure of the price increase to our loyal DStv Premium subscribers.

DStv continues to provide world-class home television entertainment, news and sports programming in line with the best digital pay television platforms worldwide.

We are most grateful for your continued support and will continue to provide a service that is consistent, efficient, and accessible.

Yours sincerely

Joseph Hundah
Managing Director
MultiChoice Nigeria

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Ugo Obi-chukwu "Ugodre" is a chartered accountant with over 16 years experience in financial management, corporate finance and financial analysis. He is also a retail investor and a personal finance advocate with over a decade experience investing in the Nigerian stock market.Ugo is the founder/Publisher of Nairametrics and blogs regularly on the website.

4 Comments

4 Comments

  1. victoria

    March 17, 2011 at 6:36 am

    I used to think that more customers meant less increase in subscription fees,but with dstv,I thought wrong,and many nigeriana also got it wrong. Dstv has had a habit of increasing their susbription fees as it pleases them. With the number of subscribers daily,doesn't it account for something? That dstv should start deducing their fees and adding more channels and stop the repeating programmes over and over again?,can dstv learn to show current movies and documentries. Can dstv also cut down ontheir prices,nigerians are struggling here and we have the higest number of subscribers in Africa. The monopoly is just crazy n their services really suck.

  2. Ugodre

    March 17, 2011 at 11:55 am

    I agree with you completely. The only way to fight this off is through content sharing and pay per view. That way new players can come into the market and still show big events like football etc resulting in a price reduction

  3. Oriyomi

    September 20, 2011 at 9:40 am

    The Nigeria society is a funy one, it gives room to exploitation and stream blue murder when somebody takes the opportunity. At the onset of GSM we complained that the N50 cost per minute was too high while Government havested a huge amount of money it promised to invest in rural telephony, where is it today? We have TV/Radio stations that are glorified hobbyist stations with no improvement in programming. Dstv does it research and responds to the needs of it subscribers,NOLLY wood;Hausa, Yoruba and Igbo programming +premiership and champions league are atestation of their dynamic programming to the satisfaction of the subscribers. The Nigeria market is a very big one that can be self regulating if the stagnating local stations can challenge the Dstv

  4. Ugodre

    September 20, 2011 at 9:52 am

    I agree with you Oriyomi. But we cant keep being at the receiving end of both the Government and Private Sector.

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Companies

Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.

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Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

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Companies

Cutix Plc forecasts N148 million profit in Q4 2021

Cutix Plc has projected that its revenue will double and profit will increase by 9% to N148 million.

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Cutix Plc, dividend

Cutix Plc has projected that in the fourth quarter of its financial year 2021, its revenue will double and profit will increase by 9% to N148 million.

These projections were made by the company in a recent earnings forecast issued by the Management, and signed by the Company’s CEO and CFO.

READ: Vitafoam shares gain 9.6%, as company reports N4.11 billion as profit in 2020

Key highlights of the earnings forecast for Q4 ended April 30, 2021

  • Revenue to increase to N1.66billion, 100% Q-o-Q.
  • Cost of Sales to increase to N1.16 billion, 70% Q-o-Q.
  • Distribution, Admin & Other expenses to increase to N232.89 million, 14%% Q-o-Q.
  • Other Income to remain unchanged at N2.50 million,
  • Finance Charges to increase slightly to N47.38 million, 3% Q-o-Q.
  • Operating income to increase to N227.83 million, 14% Q-o-Q.
  • Taxation is projected at N79.74 million.
  • While Profit attributable shareholders is projected at N148.10 million.

READ: Royal Exchange Plc forecasts N500.83 million PAT in Q1 2021

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Bottom line

The earnings forecast was made on the ground that the Nigerian economy will continue improve, as the country recovers from the impact of COVID-19. In this regard, revenue in the fourth quarter of 2021 will be slightly higher than the revenue projected in the third quarter of 2021.

READ: Okomu Oil Plc records 27.01% decline in 2020 Q3 revenues

However, the increase in the cost of sales driven by the input cost will pressure profitability to the tune of N148.10 million, which is 9% higher than the profit after tax made in the corresponding quarter of 2020.

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Companies

PZ Cussons proposes dividend payout of N397 million to the shareholders

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397 million to the shareholders of the company.

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PZ Cussons Plc, PZ Cussons Nigeria Plc

The Board of Directors of PZ Cussons Nigeria Plc has proposed the payment of N397.047 million to the shareholders of the company who currently hold the 3,970,477,045 fully paid ordinary shares of the company.

This disclosure was made public by the company in a notification issued and signed by the Company Secretary, Jacqueline Ezeokwelume, today the 7 January 2021.

She explained further that if the dividend of ten (10) Kobo per share recommended by Directors is approved by members at the Annual 72nd General Meeting, the dividend payments will be made on Monday, 1 February 2021.

What you should know

  • The Register of Members and Transfer Books of the Company will be closed from Monday, 11 January 2021 to Friday, 15 January 2021 (both dates inclusive) for the purpose of preparing an up-to-date Register of Members.
  • However, only shareholders whose names appear in the Register of Members and Transfer Books at the close of business on 19th October 2020 will receive the dividend on Monday, 1 February 2021.

What they are saying

Mr. Gbenga Oyebode, MFR, the Chairman of PZ Cussons Nigeria Plc, in his address said:

  • “Fellow shareholders, the Board of Directors is recommending to the shareholders at this AGM, a dividend pay-out of N397,047,700 representing 10 Kobo per share (2019: 15 Kobo per share). If approved, the dividend will be paid to shareholders on Monday, 1 February 2021 after deducting the appropriate withholding tax.”

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