Sawatdee,
Victoria from Techpoint here,
- MultiChoice swings to R2bn gain despite subscriber dip
- MTN Uganda spins off to cash in on fintech
- Yellow Card pushes back at Bank of Ghana over false claims
MultiChoice swings to R2bn gain despite subscriber dip
MultiChoice has pulled off a major turnaround, swinging from a hefty loss to a net gain of R2.02 billion ($108 million) for the financial year ending March 31, 2025. That’s a R4.54 billion ($243 million) reversal from the R2.52 billion ($135 million) loss the group posted the year before. A big driver of that recovery? The sale of a 60% stake in its insurance business to Sanlam, which gave the numbers a solid boost.
But the broader picture is more mixed. Group revenue dropped 9% to R49.98 billion ($2.67 billion), down from R55 billion ($2.94 billion) the previous year. That dip came largely from weaker subscription revenues, impacted by foreign exchange issues and a shrinking customer base. MultiChoice also felt the effects of deconsolidating the insurance business. South Africa held steady with a slight revenue increase to R41.73 billion ($2.23 billion), but operations in the rest of Africa and the Showmax division dragged overall performance down.
Showmax is still in heavy investment mode. Just over a year after its relaunch as “Showmax 2.0” in partnership with Comcast’s NBCUniversal, the streaming service saw a 44% jump in subscribers, despite pulling out of markets outside Africa. That growth came at a steep price, though. Showmax’s trading losses widened nearly 88% to R4.95 billion ($265 million), up from R2.64 billion ($142 million) the previous year, while its revenues dropped from R1.32 billion ($71 million) to R1.05 billion ($56 million).
MultiChoice explained that part of the dip in Showmax revenue was due to cutting its Pro and Diaspora services. Strip those out, and it claims the core platform’s revenue grew by 5%. The company says this was a peak spending period aimed at improving content, growing distribution deals, and expanding payment options. It expects tech costs to ease going forward, helping the platform inch closer to profitability.
That said, overall subscriber numbers are still slipping. MultiChoice lost a total of 1.18 million subscribers in the year ending March 2025, with its total subscriber base dropping 8% from 15.69 million to 14.51 million. The loss was evenly split, with 600,000 subscribers dropping off in South Africa and another 600,000 across the rest of Africa. Its 90-day active users also declined by 11% to 18.59 million.
Looking ahead, MultiChoice is betting on a digital-first future to drive long-term growth. While Internet data costs and macro challenges, especially in markets like Nigeria, remain obstacles, the group is banking on Showmax, DStv Internet, and other streaming products to bring in the next wave of growth. It’s a risky play, but if subscriber numbers stabilise and content investment pays off, the group may be able to hold its ground in an increasingly crowded digital media landscape.
MTN Uganda spins off to cash in on fintech
MTN Uganda is officially spinning off its fintech division, separating it from its core telecom business to create a standalone company. The move is part of MTN Group’s broader plan to do the same in Nigeria and Ghana by mid-2025, and it’s a big step for Uganda’s mobile money scene.
This isn’t just a business play, it’s also about meeting regulatory demands. Uganda’s National Payment Systems Act 2020 requires mobile money services to run as independent entities. Now, MTN’s fintech arm will have more room to grow, raise capital, and compete more fiercely in a space currently dominated by players like Airtel Money.
By going solo, MTN’s fintech unit can now better adapt to Uganda’s fast-evolving digital finance space. It also becomes more attractive to outside investors looking for a focused bet on mobile money growth in East Africa. With clearer governance and a dedicated strategy, MTN is betting big on fintech.
The company isn’t stopping at structure either. Earlier this year, MTN Group partnered with Network International to upgrade its payment processing game across Africa. It’s all part of a wider strategy to cement MTN as a digital finance powerhouse, while cutting costs through network-sharing deals, a play inspired by European telcos.
Uganda, for its part, is embracing the fintech wave. In 2024, the country launched new regulatory platforms to boost innovation and oversight. Fintechs are already outpacing traditional banks with more flexible and accessible financial services, and MTN’s timing couldn’t be better.
Once the spin-off is done, MTN Uganda’s fintech arm is expected to be one of the region’s hottest fintech players. With backing from big names like Mastercard, fresh investment opportunities, and a push to expand remittance services and financial inclusion, all eyes will be on what comes next.
Yellow Card pushes back at Bank of Ghana over false claims
Yesterday, the Bank of Ghana issued a public warning about unlicensed digital platforms, and one name on that list caught attention — Yellow Pay, a USD stablecoin service linked to Yellow Card Financial. The move sparked confusion and concern, given Yellow Card’s existing operations in Ghana.
Yellow Card quickly pushed back, clarifying that Yellow Card Ghana Limited, its local subsidiary, has no ties to Yellow Pay or HanyPay, the third-party company allegedly spreading misinformation. Yellow Card insisted it hasn’t partnered with HanyPay in any way.
Per the company, HanyPay tried to onboard with them late last year, but that process was never completed. Then, in February, HanyPay released a press statement claiming a stablecoin integration with Yellow Card, something the company calls completely false and unauthorised. Yellow Card said it addressed the situation with the central bank earlier this month.
Yellow Card Ghana also emphasised that it’s a legitimate player, incorporated in 2020 and registered with the Financial Intelligence Centre and the Data Protection Commission in Ghana. It operates within the bounds of the law, and says it’s baffled by the Bank of Ghana’s decision to issue the notice despite being given the facts.
“It is most unfortunate that the Bank of Ghana determined to publish this notice,” said Craig Stoehr, General Counsel at Yellow Card. He stressed that the company had already clarified things with the Bank before the public statement went out.
Despite the dust-up, Yellow Card says it remains fully in support of digital asset regulation in Ghana. The company welcomed the Bank’s draft crypto guidelines released last August and looks forward to more comprehensive rules expected by September.
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Have a superb Thursday!
Victoria Fakiya for Techpoint Africa.
