Multichoice, a leading pay-TV operator, has reported significant growth in its Nigerian betting business for the financial year ending March 31, 2024. The number of users of its betting platform, KingMakers, increased by 37%.
This information was revealed in the company’s recently released financial results.
During the same period, Multichoice saw an 18% decline in subscribers for its main services, DStv and GOtv. This drop is partly due to economic hardships and three consecutive price hikes in the past year.
As inflation worsens, more Nigerians turn to betting, hoping to earn extra money.
Despite declines in its Pay-TV sector, Multichoice noted a 26% year-on-year revenue increase in its online gaming business in Nigeria, measured in constant currency.
However, in USD terms, the company reported $147 million in revenue, down 26% from the previous year due to the weaker naira.
“KingMakers saw strong growth in Nigeria, with monthly active users up 37% year-on-year and gross gaming revenues up 26% in constant currency,” the company said.
The weak naira affected the USD147 million revenue, but the business reported a positive EBITDA of USD2 million. By the end of December, the business retained a cash balance of USD113 million to fund growth initiatives.
Overall, Multichoice reported a financial loss of 4.148 billion rands ($224.87 million) for the year ending March 2024, up from a loss of 2.9 billion rands ($157.21 million) the previous year. The losses were attributed to foreign exchange losses in Nigeria, Kenya, Zambia, and Angola.
In 2020, Multichoice entered the Nigerian betting market by acquiring a 20% stake in BetKing, now KingMakers, for R1.3 billion. In 2021, the company increased its stake to 49% for $281.5 million, bringing its total investment to R5.9 billion.
Multichoice aimed to leverage its sports coverage to boost the betting business. According to KingMakers, 77% of DStv subscribers are active betters or engage in match predictions, providing a solid customer base for betting.
A KPMG report predicted Africa’s gambling market would reach $37 billion by 2022, with sports betting driving much of that growth. Sports betting’s Gross Gaming Revenue (GRR) is expected to rise by 17% by 2027, with online betting revenues growing from $2.9 billion to $5.5 billion.
Multichoice cited these impressive growth projections as a key reason for their investment in the sports betting industry.
