MultiChoice, the prominent Pay-TV operator, has reported robust growth in its betting business in Nigeria, as its platform, KingMakers, saw a significant 37% increase in users for the financial year ending March 31, 2024. This growth comes against the backdrop of an 18% decline in subscribers for its main services, DStv and GOtv, attributed to economic challenges and multiple price hikes over the past year.
In a recent financial release, MultiChoice highlighted a 26% year-on-year revenue rise from Nigeria in constant currency for its online gaming division, providing a notable boost amid declining Pay-TV subscriptions. However, in USD terms, revenue was down 26% due to the impact of the weaker naira.
The company’s foray into the betting sector began with its acquisition of a 20% stake in Nigerian sports betting firm BetKing, now rebranded as KingMakers, in 2020. MultiChoice subsequently increased its stake to 49% in 2021, aligning with its strategy to leverage extensive sports coverage to drive betting engagement among its customer base.
Despite an overall loss of 4.148 billion rands ($224.87 million) for the fiscal year, primarily attributed to forex losses in several African markets, MultiChoice remains optimistic about KingMakers’ growth prospects. Internal data from KingMakers indicates that 77% of DStv subscribers actively participate in betting or match predictions, underscoring the synergy between Pay-TV and online gaming.
The African gambling market, particularly sports betting, is poised for substantial growth, with projections indicating a rise from $2.9 billion to $5.5 billion in online betting revenues by 2027. MultiChoice’s strategic investment in KingMakers aligns with these promising market dynamics, aiming to capitalize on the continent’s burgeoning betting industry.
