Canal+ reported higher first-half revenue, profit and cash flow for 2026 as the integration of MultiChoice expanded the group’s scale and early cost-savings measures took effect. Management said it remains on track to meet its full-year financial targets, while cautioning that the FIFA World Cup and favorable cost timing provided tailwinds that will not repeat in the second half.
Revenue rose 40% year over year to €4.3 billion, largely reflecting the addition of MultiChoice. On a like-for-like basis excluding MultiChoice, revenue increased 1.4%. Adjusted EBIT before exceptional items climbed 68% to €433 million, while free cash flow before exceptional items reached €414 million.
MultiChoice Turnaround Shows Early Signs
The integration and turnaround of MultiChoice remained a central focus of the half-year period. Saada said the subscriber base at MultiChoice was broadly flat compared with the prior year, an improvement from the 10% decline recorded between the first halves of 2024 and 2025. However, he said it was too early to declare a full turnaround.
The FIFA World Cup supported customer acquisition across MultiChoice markets, with new subscribers up 40% from the first half of 2025. In South Africa, June recorded the highest level of new subscriber uptake in a decade. Saada said retention among customers gained during the tournament could not yet be assessed, though management had seen no negative change in retention trends before the World Cup.
Canal+ has focused its MultiChoice recovery plan on content, pricing, distribution and subscriber acquisition. The company cited long-term rights to South Africa’s Premier Soccer League, the men’s and women’s Rugby World Cups in 2027 and 2029, and the Vodacom United Rugby Championship. It is also increasing investment in African productions, including “The Road Home,” an adaptation of “Americanah,” and “The Heist of Benin.”
On commercial execution, Canal+ reduced equipment prices for new customers in Kenya by 22% over three months and expanded market coverage and accessibility by more than 15% across MultiChoice markets. In Uganda, its point-of-sale network grew 17% since March.
Ferré said MultiChoice revenue still declined 3.4% on a like-for-like basis, principally because of lower equipment revenue. Subscriber revenue fell by close to 1%. Adjusted EBIT at MultiChoice increased 34%, driven primarily by cost synergies.
Synergies and Cost Actions
Canal+ said it had delivered €120 million in cost synergies in the first half and remains on track to achieve its €250 million full-year target. All of the first-half synergy contribution was realized at MultiChoice, Saada said, with other business units expected to contribute in the second half.
The company discontinued the Showmax streaming service, which Ferré said accounted for €52 million of the savings. Other initiatives included content-cost and hardware-price renegotiations, a voluntary severance plan at MultiChoice, broadcast-infrastructure optimization, supplier contract negotiations and the restructuring of technology and cybersecurity subsidiary Irdeto.
Ferré said the group had incurred only a small portion of the planned costs from its MultiChoice “Boost” growth plan in the first half. The majority of the planned investment, as well as much of the expected inflation-related cost pressure, will occur in the second half. She said roughly 90% of Boost-plan costs are variable.
Segment Performance and Content Plans
In Europe, like-for-like revenue declined 1.5%, partly due to the closure of the C8 channel in France and the prior-year divestment of a satellite subscriber base in Hungary. Still, the European segment’s margin rate increased to 6% from 4.9% a year earlier, supported by cost-efficiency actions and favorable first-half content-cost seasonality.
Management said it expects the European segment’s full-year margin rate to be close to the prior-year level as Canal+ begins investing in Central Europe and Belgium. The company plans to launch in Belgium in 2027 after acquiring exclusive rights to UEFA club competitions from that year.
In the Africa and Asia segment, subscribers increased 7% and adjusted EBIT rose 21%. Excluding MultiChoice, Canal+’s historical Africa and Asia perimeter increased its subscriber base 17% to 9.4 million, with like-for-like revenue rising 12%.
Content production, distribution and other revenue grew 10%, supported by StudioCanal releases including “Guru,” “The Housemaid,” “Extrawurst” and “Woolworker 2.” Canal+ also highlighted its acquisition of Italian producer and distributor Lucky Red and its joint venture with Hachette Livre to develop book adaptations for screen content.
Saada said StudioCanal’s upcoming pipeline includes “Pressure,” “Les Misérables” and “Violet.” The company also extended its agreement with French cinema organizations through 2032, preserving Canal+’s ability to broadcast films six months after theatrical release.
Guidance Maintained
Canal+ reaffirmed its 2026 outlook for flat revenue, adjusted EBIT growth of 5% to €735 million, cash flow from operations before exceptional items above €600 million, and free cash flow above €250 million.
The company generated €559 million in cash flow from operations before exceptional items during the first half, representing a 129% cash-conversion rate. Free cash flow after exceptional items was €79 million, after €336 million in exceptional payments that included a €275 million payment related to the settlement of French VAT litigation. Canal+ expects to make a final €89 million VAT payment in the second half.
Its leverage ratio declined to 1.83 at the end of June from 1.96 at the end of December, excluding VAT and CST settlement effects. Canal+ also completed a €700 million bond issuance in May, extending its average debt maturity to 4.4 years. The group reported €1.7 billion of available liquidity.
About Canaan (LON:CAN)
Founded as a French subscription-TV channel 40 years ago, CANAL+ is now a global media and entertainment company. Following its acquisition of MultiChoice Group, a leading entertainment platform in Africa, the combined Group has 40 million subscribers, operates in over 70 countries and has approximately 17,000 employees. CANAL+ is one of the largest media companies in Europe, the market leader in Africa and has a globally recognised brand (Top 50 Most Valuable French Brands, globally. Source: Kantar BrandZ, 2025).
CANAL+ operates across the entire audio-visual value chain, including production, broadcast, distribution and aggregation.
