Pay-TV operator Multichoice has recorded significant growth in its betting business in Nigeria for the financial year ended March 31, 2024. The company’s betting platform, KingMakers, saw a 37% increase in active users during the period.
This growth in the betting business came amid an 18% decline in subscribers for Multichoice’s main business, DStv and GOtv, partly due to economic hardship and three consecutive price increments implemented by the company in the last one year.
The shift towards betting among Nigerians is seen as a means of survival, with people hoping to make more money by gambling with the little they have as inflation bites harder. This trend has provided a reprieve for Multichoice, whose Pay-TV business suffered declines across its operations.
Multichoice disclosed that the online gaming business saw a 26% year-on-year revenue increase from Nigeria in constant currency. However, in reported currency (USD), the company noted that the $147 million revenue for the year was 26% lower than the previous financial year due to the impact of the weaker Nigerian Naira.
“KingMakers reported strong growth in the online business in Nigeria, with monthly active users up 37% YoY and online gross gaming revenues up 26% YoY in constant currency,” the company stated in its financial results.
The company’s overall financial performance for the year showed a loss of 4.148 billion rands ($224.87 million), an increase from a loss of 2.9 billion rands ($157.21 million) the previous year, which the company attributed to foreign exchange losses in Nigeria, Kenya, Zambia, and Angola.
Multichoice’s entry into the booming betting business in Nigeria came in 2020 when it acquired a 20% stake in Nigerian online sports betting company BetKing, now known as KingMakers. The video entertainment firm later increased its stake to 49% in 2021, leveraging its extensive sports coverage to boost the betting business.
According to a report by KPMG, Africa’s gambling market was predicted to reach a value of $37 billion by 2022, with sports betting accounting for most of that growth. The majority of Africa’s Gross Gaming Revenue (GRR) is sports betting, which is expected to rise by 17% by 2027, with online betting revenues growing from $2.9 billion to $5.5 billion.
