Canal+ revenue jumps 40% in first half on MultiChoice acquisition

Canal+ has announced a significant 40% leap in its first-half revenue, a performance largely attributed to its strategic acquisition of South African media group MultiChoice. The French audiovisual group's revenue climbed to 4.3 billion euros, up from 3.1 billion euros in the same period last year. This substantial growth has prompted Canal+ to reaffirm its annual financial objectives.

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We are quite satisfied with our financial results which demonstrate the change in scale of Canal+.

Maxime Saada, the CEO of Canal+, expressed considerable satisfaction with the financial results, highlighting the "change in scale" for the company. The acquisition of MultiChoice, a dominant player in pay-TV across English and Portuguese-speaking Africa, has expanded Canal+'s subscriber base to 41 million across more than 70 countries, quadrupling its reach in a decade. The company also reported achieving nearly half of its projected annual cost synergies, amounting to 120 million euros out of a planned 250 million euros, further validating the MultiChoice purchase.

Financially, the adjusted operating profit (EBITa) before exceptional items saw a robust increase of 68%, reaching 433 million euros. This performance, primarily driven by the consolidation of MultiChoice, pushed the profit margin to 10.1%. Saada noted a particular focus on revitalizing MultiChoice, which had been facing a downturn in subscribers, revenue, and profitability. He indicated that early signs of recovery are "very positive."

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We have a challenge to turn around MultiChoice which was experiencing declining subscribers, revenue, and profitability, and we have very positive initial signs.

In Africa, Canal+ has made efforts to boost MultiChoice's performance by making set-top boxes and satellite dishes more affordable for new subscribers and strengthening its distribution network. This has led to a 40% increase in new subscriber acquisitions within MultiChoice's territories compared to the previous year. The company also observed a "positive dynamic" in Europe, particularly in France, attributing it to stringent cost management and subscriber growth. Despite an uncertain macroeconomic and geopolitical climate, Canal+ remains confident in achieving its medium-term goals.

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We are very confident in our ability to achieve this objective and it validates the acquisition of MultiChoice for us.