MultiChoice Writes Off $21M Deposited in Failed Heritage Bank

MultiChoice Group Limited has officially written off $21 million deposited in Nigeria's defunct Heritage Bank, following the bank's liquidation earlier this year.

This information was disclosed in the company's interim financial statements for the half-year ending September 30, 2024.

The write-off was deemed necessary after the Central Bank of Nigeria revoked Heritage Bank’s operating license on June 3, 2024, leading to the institution's closure. The financial statement noted, "Following the revocation of Heritage Bank’s banking licence by the Central Bank of Nigeria on 3 June 2024 and its subsequent liquidation, the group wrote off its receivable relating to the cash held with the bank."

MultiChoice reported a decline in cash remittances from Nigeria, extracting only $65 million during the review period compared to $91 million in the same period last year.

The company also experienced additional financial strain due to exchange rate losses. It stated, “The further depreciation of the naira against the US dollar has resulted in further foreign exchange losses on non-quasi equity loans,” contributing to a significant loss reflected in its income statement.

Moreover, Nigeria accounted for 63% of MultiChoice Group's subscriber losses in its Rest of Africa segment since FY23. The decline is attributed to severe economic pressures, including inflation and currency depreciation, with Nigeria reporting a net loss of 1.1 million active subscribers.

Before Heritage Bank's liquidation, MultiChoice had an account balance of N31.6 billion with the institution.