Multichoice, the owners of Dstv, Supersports and majority shareholders of Multichoice Nigeria are a dominant force in the operation of pay-television and internet subscriber platforms in Africa. In Nigeria, they are mostly undisputed in the Pay-Television business, taking out competitors to the cleaners over the last decade or so. Such dominance is bound to be reflected in their bottom line one would think.
According to their audited accounts for the year ended March 2012, the company posted a revenue of R20b (N370b)!!!. They also posted an operational profit of R5.8b(N107.59b). Net profit was R4.1b (N76b). In other words, the company in terms of margins, posted 29% in operational profit margin and 21% in profit margins respectively bettering last years results. The company is also able to generate operational cashflows of R5b (N92b) and free cashflows of R4.1b (N76b). Only Nigerian Banks post figures close to this.
On subscriptions alone, the company was able to rake in R13.3b (N246b) 4 times the cost of its programming and film rights. On Return on Equity, the company posted juicy 49% beating the 45% posted last year. Now is there any Pay TV company in Nigeria that can compete? Your guess is as good as mine.