Check Point® Software Technologies Ltd. (www.CheckPoint.com) (NASDAQ: CHKP), a leading AI-powered, cloud-delivered cybersecurity platform provider, has published its Global Threat Index for May 2024.

Download document: https://apo-opa.co/45k3KCE

The Index assesses the cybersecurity risk of countries worldwide, with a lower rank indicating higher risk and a higher rank indicating lower risk.

The May 2024 Index highlights significant variations in cybersecurity risk levels across African countries. Egypt ranked highest on the Index among the 111 countries surveyed, followed by Namibia (108th) and South Africa (68th). Ethiopia and Zimbabwe faced the highest risks, being placed second and third respectively on the Index. Other African countries continue to face cybersecurity challenges with Angola (5), Maldives (6), Kenya (9), Ghana (11), Mauritius (18), Morocco (21), Uganda (23) and Nigeria (40) having among the lowest rankings.

“Egypt, Namibia and South Africa’s positions in the Global Threat Index for May 2024 underscore the effectiveness of their strategic approaches to cybersecurity,” says Vincent Mabaso, Distribution Lead: Africa, Check Point Software Technologies. “Their success serves as a model for other African nations striving to improve their cybersecurity posture.”

LockBit is back!

Last month, researchers uncovered a malspam campaign orchestrated by the Phorpiex botnet. The millions of phishing emails sent contained LockBit Black – based on LockBit3 but unaffiliated with the Ransomware group. In an unrelated development, the actual LockBit3 ransomware-as-a-Service (RaaS) group surged in prevalence after a short hiatus following a global takedown by law enforcement, accounting for 33% of published attacks.

The original operators of the Phorpiex botnet shut down and sold the source code in August 2021. However, by December 2021, Check Point Research (CPR) discovered it had reemerged as a new variant called “Twizt”, operating in a decentralized peer-to-peer model.

In April of this year, the New Jersey Cybersecurity and Communications Integration Cell (NJCCIC) (https://apo-opa.co/4ceXqPc) found evidence that Phorpiex botnet, which ranked sixth in last month’s threat index, were being used to send millions of phishing emails as part of a LockBit3 ransomware campaign. These emails carried ZIP attachments (https://apo-opa.co/4ceXtum) that, when the deceptive .doc.scr files within were executed, triggered the ransomware encryption process. The campaign used over 1,500 unique IP addresses, primarily from Kazakhstan, Uzbekistan, Iran, Russia, and China.

Meanwhile, the Check Point Threat Index highlights insights from “shame sites” run by double-extortion ransomware groups posting victim information to pressure non-paying targets. In May, LockBit3 reasserted its dominance, accounting for 33% of published attacks. They were followed by Inc. Ransom with 7% and Play with a detection rate of 5%. Inc. Ransom recently claimed responsibility for a major cyber incident that disrupted public services at Leicester City Council (https://apo-opa.co/4bUharv) in the UK, allegedly stealing over 3 terabytes of data and causing a widespread system shutdown.

“While law enforcement bodies managed to temporarily disrupt the LockBit3 cybergang by exposing one of its leaders and affiliates in addition to releasing over 7,000 LockBit decryption keys (https://apo-opa.co/3KHKcim), it is still not enough for a complete takedown of the threat. It is not surprising to see them regroup and deploy new tactics to continue in their pursuits,” said Maya Horowitz, VP of Research at Check Point Software.

“Ransomware is one the most disruptive methods of attack employed by cybercriminals. Once they have infiltrated the network and extracted information, the options are limited for the target, especially if they cannot afford to pay the ransom demands. That is why organisations must be alert to the risks and prioritise preventative measures.”

Top malware families

*The arrows relate to the change in rank compared to the previous month.

FakeUpdates was the most prevalent malware last month with an impact of 7% worldwide organisations, followed by Androxgh0st with 5%, and Qbot with 3%.

1. ↔ FakeUpdates – FakeUpdates (AKA SocGholish) is a downloader written in JavaScript. It writes the payloads to disk prior to launching them. FakeUpdates led to further compromise via many additional malware, including GootLoader, Dridex, NetSupport, DoppelPaymer, and AZORult.

2. ↔ Androxgh0st – Androxgh0st is a botnet that targets Windows, Mac, and Linux platforms. For initial infection, Androxgh0st exploits multiple vulnerabilities, specifically targeting- the PHPUnit, Laravel Framework, and Apache Web Server. The malware steals sensitive information such as Twilio account information, SMTP credentials, AWS key, etc. It uses Laravel files to collect the required information. It has different variants which scan for different information.

3. ↔ Qbot – Qbot AKA Qakbot is a multipurpose malware that first appeared in 2008. It was designed to steal a user’s credentials, record keystrokes, steal cookies from browsers, spy on banking activities, and deploy additional malware. Often distributed via spam email, Qbot employs several anti-VM, anti-debugging, and anti-sandbox techniques to hinder analysis and evade detection. Commencing in 2022, it emerged as one of the most prevalent Trojans.

Top exploited vulnerabilities 

Last month, “Command Injection Over HTTP” was the most exploited vulnerability, impacting 50% of organisations globally, followed by “Web Servers Malicious URL Directory Traversal” at 47% and “Apache Log4j Remote Code Execution” with 46%.

1. ↔ Command Injection Over HTTP (CVE-2021-43936, CVE-2022-24086) – A command Injection over HTTP vulnerability has been reported. A remote attacker can exploit this issue by sending a specially crafted request to the victim. Successful exploitation would allow an attacker to execute arbitrary code on the target machine. 

2. ↔ Web Servers Malicious URL Directory Traversal (CVE-2010-4598,CVE-2011-2474,CVE-2014-0130,CVE-2014-0780,CVE-2015-0666,CVE-2015-4068,CVE-2015-7254,CVE-2016-4523,CVE-2016-8530,CVE-2017-11512,CVE-2018-3948,CVE-2018-3949,CVE-2019-18952,CVE-2020-5410,CVE-2020-8260) – There exists a directory traversal vulnerability On different web servers. The vulnerability is due to an input validation error in a web server that does not properly sanitize the URI for the directory traversal patterns. Successful exploitation allows unauthenticated remote attackers to disclose or access arbitrary files on the vulnerable server.

3. ↑ Apache Log4j Remote Code Execution (CVE-2021-44228) – A remote code execution vulnerability exists in Apache Log4j. Successful exploitation of this vulnerability could allow a remote attacker to execute arbitrary code on the affected system.

Top Mobile Malwares

Last month, Anubis was in first place as the most prevalent Mobile malware, followed by AhMyth and Hydra.

1. ↔ Anubis – Anubis is a banking Trojan malware designed for Android mobile phones. Since it was initially detected, it has gained additional functions including Remote Access Trojan (RAT) functionality, keylogger, audio recording capabilities and various ransomware features. It has been detected on hundreds of different applications available in the Google Store.

2. ↔ AhMyth – AhMyth is a Remote Access Trojan (RAT) discovered in 2017. It is distributed through Android apps that can be found on app stores and various websites. When a user installs one of these infected apps, the malware can collect sensitive information from the device and perform actions such as keylogging, taking screenshots, sending SMS messages, and activating the camera, which is usually used to steal sensitive information.

3. ↑ Hydra – Hydra is a banking Trojan designed to steal banking credentials by requesting victims to enable dangerous permissions and access each time the enter any banking app.

Top-Attacked Industries in Africa

According to the data, the top attacked industries last month in Africa were:

Government/Military
Finance/Banking
Communications

Last month, Education/Research remained in first place in the most attacked industries globally, followed by Government/Military and Communications.

Top Ransomware Groups

The following data is based on insights from ransomware “shame sites” run by double-extortion ransomware groups that post victim information. Last month, LockBit3 was the most prevalent ransomware group last month, responsible for 33% of the published attacks, followed by Inc. Ransom with 7% and Play with 5%.

LockBit3 – LockBit3 is a ransomware, operating in a RaaS model, first reported in September 2019. LockBit targets large enterprises and government entities from various countries and does not target individuals in Russia or the Commonwealth of Independent States. Despite experiencing significant outages in February 2024 due to law enforcement action, LockBit has resumed publishing information about its victims.
Inc. Ransom – Inc. Ransom is a ransomware extortion operation that emerged in July 2023, performing spear-phishing attacks and targeting vulnerable services. The group’s main targets are organisations in North America and Europe across multiple sectors including healthcare, education, and government. Inc. ransomware payloads support multiple command-line arguments and uses partial encryption with a multi-threading approach.
Play – Play Ransomware, also referred to as PlayCrypt, is a ransomware that first emerged in June 2022. This ransomware has targeted a broad spectrum of businesses and critical infrastructure across North America, South America, and Europe, affecting approximately 300 entities by October 2023. Play Ransomware typically gains access to networks through compromised valid accounts or by exploiting unpatched vulnerabilities, such as those in Fortinet SSL VPNs. Once inside, it employs techniques like using living-off-the-land binaries (LOLBins) for tasks such as data exfiltration and credential theft.

“While there are commonalities in the industries targeted by cybercriminals across different regions, specific sectors such as Government/Military, Finance/Banking, and Communications are consistently at high risk. African countries must continue to enhance their cybersecurity measures to protect these critical industries from evolving threats

Ransomware and the other cyber threats listed are among the most disruptive methods employed by cybercriminals globally. Organisations must be proactive, not reactive, in their cybersecurity strategies. Preventative measures, continuous monitoring, and rapid response protocols are crucial to mitigating the impact of these attacks,” Mabaso concludes.

Distributed by APO Group on behalf of Check Point Software Technologies Ltd..

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About Check Point Research: 
Check Point Research provides leading cyber threat intelligence to Check Point Software customers and the greater intelligence community. The research team collects and analyzes global cyber-attack data stored on ThreatCloud to keep hackers at bay, while ensuring all Check Point products are updated with the latest protections. The research team consists of over 100 analysts and researchers cooperating with other security vendors, law enforcement and various CERTs. 

About Check Point Software Technologies Ltd. : 
Check Point Software Technologies Ltd. (www.CheckPoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organisations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services. 

Africa to Silicon Valley (A2SV), is a leading tech academy and incubator, backed by Google,  training African university students, connecting them with career opportunities, and creating tech-driven solutions addressing community challenges.

A2SV proudly participated in GITEX AFRICA 2024, Africa’s premier technology showcase, held from May 29 to 31 in Marrakesh, Morocco. A team of 40 representatives from A2SV attended the event, highlighting the organization’s commitment to advancing technology and innovation in Africa, and playing a key role in the digital transformation of the continent.

The A2SV team featured 6 projects:

Adot (https://www.Adot.life): Combining medical and tech expertise, Adot offers a platform for pregnancy monitoring, localized maternal health information, and community support tailored for African mothers.

AKIL (https://AKILconnect.org):  Akil brings together NGOS and volunteers in a painless and centralized approach, helping NGOs easily connect with volunteers and volunteers with the causes they want to support. AKIL facilitates these meaningful connections to maximize the impact of NGOs and passionate volunteers.

SkillBridge (https://SkillBridge.academy): Skillbridge transforms learning and exam preparation in Africa with an AI-powered, customized learning platform where students gain access to learning resources, personalized learning paths, and gamification.

AfroChat (https://AfroChat.app): AfroChat is a centralized platform providing a much-needed easy access to a wide range of AI services with affordable pricing. Through awareness education and affordable pricing, AfroChat ensures that more businesses and people, including those with low incomes, can benefit from advanced AI technologies.

RateEat (https://RateEat.app): RateEat simplifies the food search process with up-to-date restaurant information and filtering options based on price, location, and rating. The platform offers image and video reviews with ratings for item-specific feedback on individual dishes.

Eskalate (https://www.Eskalate.io): Eskalate empowers businesses by connecting them with Africa’s top engineering talent. By providing access to skilled software developers who have graduated from A2SV’s rigorous software engineering training program, Eskalate powers local and global business with their number one asset — talent. Some examples of its partners include Google, Bloomberg, Databricks, and Amazon.

The expo at GITEX AFRICA provided an excellent opportunity for A2SV to demonstrate its talent, innovation, and impact to industry leaders, investors, and tech enthusiasts from across Africa and beyond. A2SV’s exhibitor projects were highly praised, including reaching semi-finals at the startup pitch competition, and also received valuable constructive feedback.

“I am particularly happy that A2SV is well-represented at GITEX Africa with 40 A2SVians and I believe this is an invaluable opportunity for us to demonstrate our capabilities,” said Emre Varol, A2SV’s founder and CEO. “Events like GITEX Africa help us create visibility and form meaningful partnerships aligned with our mission of democratizing access to opportunity and innovation.”

Since its founding, A2SV has trained over 800 students via its free, rigorous program (in-person and remote), employed 142 of them as it expands its operations to more countries in Africa, and connected 65 students with career opportunities at leading tech companies. Additionally, A2SV has started developing technology projects as early seed ventures, further driving innovation and growth.

“We continue to see that digital transformation will be key to Africa’s future, especially as the continent has the youngest population in the world. For that, we need capital and talent but without the talent capital alone can’t do much,” said Yordanos Asmare, A2SV’s Head of Talent and Partnerships. “At A2SV, we have over 800 students who are ready to tackle Africa’s challenges and solve them better than outsiders. We are showing the world that A2SV has the means to do that.”

For more information about A2SV and its projects, please visit A2SV.org

Distributed by APO Group on behalf of GITEX Africa.

Media contact:
Yordanos Asmare
A2SV
yordanos@a2sv.org

About A2SV:
A2SV is an international nonprofit started in 2019 working to bridge the gap between students across African countries and Big Tech. With the tech industry becoming increasingly competitive, the nonprofit is on a mission to provide opportunities for talented software engineers to grow their careers, learn from industry experts and use this knowledge to better their local communities through digital innovation. A2SV currently partners with universities in Africa to provide students with free training and pathways for internships in leading tech companies including Google and Bloomberg. Their annual continent-wide Hackathon further aims to diversify the industry by encouraging youth to address unique challenges in their communities through tech-led initiatives. To learn more about A2SV, visit our website at A2SV.org.

Infobip (www.Infobip.com), global leader in omnichannel communication solutions, proudly announced the launch of enhanced Voice connectivity services in Morocco today. The unveiling event, held in Casablanca, marked a significant milestone in Infobip’s expansion within the region, reinforcing its commitment to delivering unparalleled communication services to local and international businesses.

The introduction of stronger Voice connectivity is positioned to transform the communication landscape in Morocco, providing enhanced reliability and connectivity for voice services. By addressing common issues such as packet loss and call latency, Infobip is poised to offer superior call quality and stability, ensuring seamless communication experiences for its users.

Revolutionizing voice services in Morocco

Infobip’s new Voice connectivity services are a testament to the company’s dedication to innovation and customer satisfaction. This initiative enables Infobip to offer local connections with local numbers, significantly increasing call answer rates and reducing call drop-offs. With low latency calls and reliable connections, businesses can now enjoy crystal-clear voice communication, enhancing customer interactions and support services.

Enhanced capabilities and customer benefits

The introduction of greater Voice connectivity brings several advantages to Infobip’s clients. One of the primary benefits is the availability of local numbers, which boosts the likelihood of calls being answered. Organizations can add privacy features, such as Number Masking which anonymizes private numbers of both parties, adding an extra layer of security to 2-way communications.

Moreover, Infobip’s Voice services are designed to support various use cases tailored to different industries. For instance, the Call Link feature enables immediate customer support and remote diagnosis via video calls, while automated voice message broadcasts and IVR call flows streamline customer interactions. These solutions provide contextualized support that goes beyond text-based messaging, offering a more personalized and effective communication experience.

Positioning Infobip as a market leader

The launch of voice connectivity cements Infobip’s approach in the region. With the widest-reaching network of direct connections, Infobip ensures low latency and reliable call connections regardless of where the calls are routed. This strategic investment solidifies Infobip’s market presence and underscores its commitment to delivering reliable communication solutions.

Infobip’s comprehensive control over voice scenarios through APIs allows customers to tailor call flows to their specific needs, providing unmatched flexibility and customization. Predefined use cases can be built and deployed in hours enable clients to quickly adopt and implement voice solutions with minimal development effort, making it easier for businesses to integrate advanced communication capabilities into their operations.

Customer-centric approach

Infobip’s focus on easily accessible connections between businesses and users is at the core of its strategy. By understanding the unique needs and goals of its clients, Infobip can develop relevant use cases that deliver tangible value. The new Voice connectivity services are already operational, and businesses in Morocco can immediately benefit from its advanced features and capabilities. This focus spans across industries such as Banking, Retail, and Telco, where Infobip provides significant value.

The event in Casablanca featured insightful presentations and live demonstrations, showcasing the transformative potential of Infobip’s Voice services. Attendees from various industries had the opportunity to explore how these solutions could be applied to their specific use cases, fostering a deeper understanding of the benefits and applications of advanced voice communication.

Looking ahead

As Infobip continues to innovate and expand its offerings, the enhanced Voice connectivity in Morocco represents a significant step forward in enhancing communication infrastructures. By leveraging cutting-edge technology and a customer-centric approach, Infobip is well-positioned to lead the market and set new standards in voice communication.

Infobip’s Regional Manager, Imane Rifki, reflected on the latest company updates in the local market: “We are dedicated to continuously improving the communication experiences that businesses across Morocco provide to their clients. We are enablers of high-quality services and conversational experiences in different industries, and the launch of the local Voice connectivity is just one example of our commitment to driving progress.”

For more information about Infobip’s Voice services and the new data center, visit Infobip’s website (www.Infobip.com).

Distributed by APO Group on behalf of Infobip.

About Infobip:
Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey. Accessed through a single platform, Infobip’s omnichannel engagement, identity, user authentication and contact centre solutions help businesses and partners overcome the complexity of consumer communications to grow business and increase loyalty. With over a decade of industry experience, Infobip has expanded to 75+ offices globally. It offers natively built technology with the capacity to reach over seven billion mobile devices and ‘things’ in 6 continents connected to over 9,700+ connections of which 800+ are direct operator connections. Infobip was established in 2006 and is led by its co-founders, CEO Silvio Kutić, Roberto Kutić and Izabel Jelenić.

Recent award wins include:

• Infobip ranked as number one Communications Platform as a Service (CPaaS) provider, in the inaugural MetriRank CPaaS Report from Metrigy (Dec 2023)

• Omdia Ranks Infobip as Leader for the second year running in its CPaaS Universe Report (Nov 2023)

• Infobip named a Leader in the Gartner® Magic Quadrant™ for Communications Platform as a Service (CPaaS) 2023 (Sept 2023)

• Infobip named a Leader in the IDC MarketScape: Worldwide Communications Platform-as-a-Service (CPaaS) 2023 Vendor Assessment (May 2023)

• Infobip named a leader in the Juniper Customer Data Platform Leaderboard Report (July 2023)

• Infobip named a leader in the CPaaS Leaderboard, Juniper Research (Feb 2023)

• Infobip named a leader in the CCaaS Leaderboard, Juniper Research (Dec 2023)

MultiChoice Group (www.MultiChoice.com/) demonstrated resilient operational performance for the year ended March 2024 (FY24), delivering a 26% trading profit margin in South Africa, while increasing trading profit in the Rest of Africa by 48%, despite very challenging macro-economic conditions. Clear strategic milestones were reached, with the group successfully launching Showmax 2.0, SuperSportBet and Moment, all of which are now revenue-generating and supporting the group’s future growth prospects.

Download document: https://apo-opa.co/4cj3eXQ

“Four years after setting out a clear strategy of building Africa’s entertainment platform of choice and investing in services to support a broader ecosystem, our three core segments are now fully operational: video entertainment, interactive entertainment and fintech. Our focus now shifts to building on these solid foundations to drive growth in these new areas, and on further enhancing business efficiency across our operations.

While we are not alone in feeling the challenges of a weak consumer environment, I am proud of the speed and effectiveness of the team in implementing strategic actions to retain customers, safeguard cash generation and drive costs savings which surpassed our targets. It is the strength of this team, the quality of the underlying business and the clarity of our strategy which underpins my confidence in delivering on our potential,” said Calvo Mawela, MultiChoice Group CEO.

Some key points for the past financial year:

Subscriber base: Given the challenging consumer environment, overall active subscribers declined by 9%. This was mainly due to a 13% decline in the Rest of Africa business, with Nigeria, Angola and Zambia most affected, while the South African business was more resilient, declining by only 5%.   
Group revenue: increased by 3% on an organic basis. However, due to weaker local currencies and consumer pressure, reported Group revenue declined by 5% to ZAR56.0bn.
Subscription revenues: grew by 2% on an organic basis. However, on a reported basis, subscription revenues declined by 7% due to a weaker Naira.
Group trading profit: increased 24% on an organic basis, despite the additional ZAR1.4bn investment in Showmax to drive future growth. After factoring in the ZAR4.5bn impact related to foreign exchange weakness, reported trading profit declined by 21% to ZAR7.9bn.
Positive operating leverage: Given the positive impact of the lower expenditure (including ZAR1.9bn in cost savings and ZAR1.5bn in reduced decoder subsidies), the group achieved positive operating leverage of 4.3% (i.e. a 3.3% organic revenue increase against a 1% organic reduction in operating expenses).
Adjusted core headline earnings: Higher realised hedging gains and benefits from a narrower gap between official and parallel Naira rate, was more than offset by the weaker trading profitability, resulting in adjusted core headline earnings (which now includes losses on cash remittances after tax and minorities) decreasing by 20% to ZAR1.3bn.
Free cash flow: amounted to ZAR589m, impacted by lower profitability and the  ZAR1.7bn in Showmax platform payments.
Retained cash and cash equivalents: ZAR7.3bn in cash (before short-term commitments) and access to ZAR4.1bn in undrawn borrowing facilities provides significant headroom and flexibility to fund opportunities.

MultiChoice is by far the largest producer of original content on the African continent. In FY24, the group again produced over 6 500 hours of local content and its local content library now has more than 84,000 hours of content, a 12% increase YoY.

The highlight for the year was Shaka Ilembe, which launched on Mzansi Magic in June to become Africa’s biggest TV series. Filmed entirely on location in South Africa, it was created through the skills and contributions of over 8 000 people. The premiere episode attracted over four million viewers and was the top-performing show with an audience share of over 45% in its time slot.

Other content highlights of the year was Reyka (season 2), Devil’s Peak and White Lies on linear (co-produced with Fremantle, Canal +, Abacus Distribution and BBC Studios-owned Lookout Point) and Spinners, Original Sin: My Son The Killer, and Catch Me a Killer, on streaming. Across Africa, the group launched 3 new proprietary channels – in Ethiopia (Maaddii Abol), Uganda (Pearl Magic Loko) and Mozambique (Maningue Magic Kool) while also producing content in Africa’s 4th most spoken language, Oromo.

SuperSport broadcast 34 490 live events during the year – arguably more live sport than any other broadcaster in the world. Highlights included the Rugby World Cup in France, the Cricket World Cup in India, a second  SA20 season in South Africa, AFCON, FIFA Women’s World Cup in New Zealand and Australia, as well as the Netball World Cup in Cape Town.

SuperSport Schools more than doubled its registered user base during the year. The fast-growing platform displayed more than 49 000 hours of live programming across 43 different sports codes, covering 900 school sport festivals and events, featuring more than 1 100 schools, and over 14 500 teams.

SEGMENTAL REVIEW

South Africa Pay-TV (MultiChoice South Africa)

Due to a strong focus on retention initiatives, the decline in active subscribers in South Africa was limited to 5%, despite the challenging environment. The base now stands at 7.6 million households.  Power outages experienced on 275 days of the year further discouraged potential subscribers without backup power.

Although the Premium bouquet is trending toward a stable base given the targeted retention efforts, the premium customer tier (which includes the Premium and Compact Plus bouquets) declined by 8%. The mid-market Compact base, which is most exposed to the macro-economic challenges, was down 9%, while the mass-market tier was 2% lower due to pressure in the Family base, the impact of loadshedding, and reduced decoder subsidies.

A consequent 3% decline in subscription revenues and softer advertising income weighed on the segment’s total revenues (-2% to ZAR33.6bn), but was partially offset by strong traction from new revenue streams, especially the insurance business (NMSIS) which reported a 35% increase in premium revenue to almost ZAR1bn. Several interventions to reduce costs enabled the SA business to achieve a trading margin of over 26%.  

Rest of Africa Pay-TV (MultiChoice Africa)

The business in the Rest of Africa faced the toughest macro-economic conditions in its core markets with high, double-digit inflation and extreme depreciation of local currencies, (especially in Nigeria, Angola, Kenya and Zambia) which impacted USD revenues by 32%.

The active subscriber base declined to 8.1m, but effective retention efforts contributed to an improved subscriber mix.

Due to the challenging market dynamics, the short-term focus of this business shifted from subscriber growth to safeguard profitability and cash flows. Several cost-saving initiatives were implemented, including scaling back significantly on decoder subsidies (-46% YoY or ZAR1.3bn), and reducing SG&A costs by ZAR500m. These interventions enabled the Rest of Africa business to increase trading profit by 48% YoY to ZAR1.3bn.

Sub-Saharan Africa SVOD (Showmax)

FY24 was a pivotal year for Showmax as it relaunched across 44 markets in sub-Saharan Africa on Peacock’s world-class platform, which is 4K/HDR and ATMOS ready. Almost 100% of the eligible customer base was migrated to the new Showmax platform, and 88% of those migrated had reactivated their accounts in the seven weeks to year-end.

Alongside local content from M-Net, Mzansi Magic, Africa Magic and Maisha Magic, Showmax ramped up its local content, releasing 59 original movies and series in SA, Nigeria, Kenya and Ghana (FY23: 48). Popular shows that drove viewership included Tracking Thabo Bester, Koek, The Mommy Club, Youngins, Red Ink, Adulting, Outlaws and Real Housewives of Durban in South Africa, Cheta’m, Real Housewives of Lagos, Dead Serious, Wura and Flawsome in Nigeria, and Single Kiasi and Second Family in Kenya.

Showmax revenues for the year grew by 22% (+22% organic) to ZAR1.0bn, while trading losses increased to ZAR2.6bn. These losses came in below the expected range of ZAR3-4.0bn. As noted before, due to the partnership agreement signed in 2023, 30% of Showmax’s funding requirements is contributed by Comcast.

Technology (Irdeto)

Irdeto’s strong execution, enabled it to become the market leader in managed security services for video with a 22% market share. It also saw significant success in combatting piracy, taking down some 30 000 streaming piracy services during the year. Revenue increased by 17% (7% organic) driven by external customers across video entertainment, gaming and connected transport, with some additional uplift from a weaker ZAR against the USD. Disciplined cost management supported a 23% trading margin.

Irdeto shipped its first keyless solutions to leading customers, including one of the largest fleet operators in the US market. This resulted in a revenue increase of 119% YoY in the connected transport division, with revenue from new services now representing a combined 35.7% of total revenues. 

Sports betting and interactive entertainment (KingMakers)

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. New products were also launched, including BetKing Casino and BetKing FootballGO, a virtual football sportsbook service.

Revenue of USD147m was affected by the weak Naira, while the business reported a positive EBITDA of USD2m. At the end of its December year-end the business had a retained cash balance USD113m to fully fund its growth initiatives.

KingMakers launched the SuperSportBet business in South Africa in January 2024. Its pre-game shows and live feed integration with SuperPicks, as well as the Playbook preview show were key drivers of uptake, further supported by SuperSportBet becoming the official betting partner of local soccer clubs, Kaizer Chiefs and Orlando Pirates.

Fin-tech (Moment)

After being founded during FY23, Moment officially launched in FY24. The business played a vital role in the Showmax relaunch stepping up to fill a critical payments gap. In January this year, Moment also began processing MultiChoice’s payments for DStv, reaching a milestone of processing USD85m in payments in early March 2024.

To-date, Moment has processed local and cross-border card payments in 44 Showmax markets and is already accounting for more than 20% of Group’s payment volumes. It also joined real-time payment networks in 18 countries, including South Africa, and is currently piloting instant payment and account activation for DStv.

The business raised an additional USD22m of funding, with MultiChoice contributing USD8m. As a result, Moment is now valued at USD82m and MultiChoice owns a 26% stake.

FUTURE PROSPECTS

The linear video-entertainment business remains the mainstay of the group’s operations and provides a valuable base from which to expand its service offerings. The new streaming, interactive entertainment, fintech and connectivity services are having a positive impact on the business, and more importantly, on the lives of its customers. Going forward, the group will focus its efforts on scaling Showmax, Moment, SuperSportBet, as well as on driving growth in insurance (NMSIS), DStv Internet and DStv Stream.

To counter the challenges around an uncertain economic recovery globally and across the group’s operating footprint, the group will continue to drive business efficiency and cost optimisation, with an increased cost savings target of ZAR2bn.

Not only should this mitigate the ongoing impact of currency volatility and consumer weakness on performance, but together with the company’s strategic plans to continue adapting its platforms to cater to customers’ evolving needs, it positions the group well to prosper once currencies stabilize and economies rebound.

Distributed by APO Group on behalf of MultiChoice Group.

MultiChoice Group Contact Details: 
Litlhare Moteetee
Senior Manager: Corporate Communications 
Litlhare.Moteetee@Multichoice.co.za     

Meloy Horn, Head of Investor Relations 
Mobile: +27 82 772 7123 
meloy.horn@multichoice.com    

About MultiChoice Group:
MultiChoice Group (MCG), listed on the Johannesburg Stock Exchange (JSE), is a leading provider of entertainment and related consumer services, with an expanding ecosystem, underpinned by scalable technologies, and a track record now spanning almost 40 years.  MCG provides video entertainment products and services through its linear and streaming platforms to 23.5m households across 50 countries on the African continent and continues to grow by producing and acquiring the best local, sport and international content and offering tiered subscription packages and aggregated streaming services to its customer base. MCG’s superior technology capabilities enables it to continue innovating around distribution, digital and payment solutions and content security to offer the best customer experience across the continent. Reaching up to 100 million individuals on a daily basis, the MultiChoice Group is using its scale and distribution to expand its platform to include sports betting and interactive entertainment, fin-tech services, household services (focused on internet connectivity and emergency response services) and ed-tech. Irdeto, MCG’s technology business, provides platform cybersecurity services which protect over 6bn devices and applications globally for some of the world’s best media and technology brands, as well as clients in the connected industries sector.