Core Insights - Canal+ reported a successful first year as a listed company, exceeding financial objectives and achieving adjusted EBIT of €542 million, cash flow from operations of €606 million, and free cash flow of €448 million, all excluding Vietnam [4][5] Financial Performance - Revenues in content production and distribution slightly declined, attributed to a strong upcoming slate in 2024, but profitability remained high with a margin rate above 20% [1] - Europe experienced a turnaround with a 1.1% organic revenue growth and a 15% increase in adjusted EBIT for 2025 [2] - Canal+ ended 2025 with a customer base of 28 million, an increase of over 2 million from 2024, with retail subscribers growing by more than 1 million [3] Tax and Exceptional Items - A tax settlement resulted in €346 million of exceptional costs in 2025, primarily from a VAT settlement of €363 million [6] - Despite these exceptional items, Canal+ achieved a 119% cash conversion rate, with CFFO reaching €648 million before exceptional items [7] 2026 Guidance - For 2026, Canal+ expects moderate organic revenue growth and adjusted EBIT to rise to €565 million, with an EBIT margin exceeding 9% [8] - The company anticipates over €500 million of CFFO and more than €300 million of free cash flow before VAT and restructuring costs [9] MultiChoice Integration - Canal+ began consolidating MultiChoice in September 2025, addressing challenges through cost reductions and price increases, while aiming to reverse a negative cycle [12] - MultiChoice's trading profits declined significantly, and for 2026, Canal+ aims to lift adjusted EBIT to about €170 million [13][14] - The discontinuation of the Showmax service was highlighted as a necessary move to stop financial losses, with management noting losses exceeding €100 million [15] Long-term Outlook - The combined group is guided to achieve 2026 adjusted EBIT of €735 million, with CFFO over €600 million and free cash flow exceeding €250 million [17] - The medium-term outlook projects adjusted EBIT above €850 million and CFFO above €800 million by around 2028-2029 [17]

Canal+ will discontinue the loss-making Showmax streaming service developed by South Africa's MultiChoice https://t.co/5EL3PO0Y01 ...

Core Insights - Canal+ aims to leverage the acquisition of MultiChoice to capitalize on the growth potential in Africa, targeting a combined subscriber base exceeding 40 million and aiming for 50-100 million in the long term [4][10] Group 1: Market Opportunity - The African market presents significant growth opportunities, with a current population of approximately 1.2 billion projected to increase by 800 million by 2050, alongside GDP growth forecasts near 5% over the next five years [2] - Pay-TV penetration in Sub-Saharan Africa is around 32%, while OTT penetration is less than 5%, indicating a prime market for paid television growth [2][4] Group 2: Strategic Goals and Synergies - Canal+ has identified €80 million in cash savings for 2026 through content, supplier, and refinancing actions, with a target of over €400 million in EBITDA cost synergies by 2030 [3][5][14] - The company expects to convert a significant portion of these synergies into free cash flow, targeting over €300 million run-rate after interest and taxes by 2030 [5][13] Group 3: Content and Distribution - Canal+ and MultiChoice collectively offer more than 100 local channels and produce around 10,000 hours of fresh local content annually in over 20 languages, enhancing their competitive edge [7] - Sports content is a core focus, with rights to major leagues and events, which is expected to drive subscriber growth [8] Group 4: Integration and Management Strategy - The management has committed to not exiting any markets or reducing staff in South Africa for three years, emphasizing a focus on cost synergies rather than headcount reductions [11][17] - The integration plan includes trimming investments in loss-making platforms like Showmax while exploring partnerships, such as advanced discussions with Comcast [15]

Canal+ is studying the possibility of buying out the remaining stake in African streaming platform Showmax from Comcast https://t.co/Vjc7ooVxaA ...