This move is driven by the company’s response to financial constraints and the challenges it faces in maintaining a healthy balance sheet.
As per the Daily Investor, MultiChoice CFO Tim Jacobs stressed the importance of price increases for DStv, keeping in line with inflation rates. Jacobs pointed out that these adjustments are crucial to making sure the company can grow steadily and still provide high-quality content.
“For many years, especially in South Africa, we have priced our products at less than half of inflation. We’ve been concerned and watching the consumer’s wallet,” Jacobs said.
In the past six months, MultiChoice saw a 1% decrease in overall revenue, totaling about R28.33 billion, including a 3% decline in earnings from their important South African business.
Despite raising TV package prices by 4.3% earlier this year, the company reported a substantial loss of R911 million, a stark contrast to the R55 million profit earned during the same period last year.
Jacobs, shedding light on the company’s current situation, shared, “We are actually to the point now, with load-shedding and our revenue number coming under so much pressure, that we have to be a little bit more disciplined about recovering some of our costs,” while also anticipating, “The chances are that we’re gonna be looking at inflationary price increases, both in the South African market and the rest of Africa.”