Canal+ suffers lower nine-month revenue but completes MultiChoice buy

(Alliance News) - Canal+ SA on Thursday reported a slight decline in year-to-date revenue but said it has "made significant progress on delivering our strategic and financial priorities", including the acquisition of South African peer MultiChoice Group Ltd.

The Paris-based media and entertainment group owns a 94% stake in MultiChoice and is proceeding to 'squeeze out' remaining MultiChoice shareholders to get 100% ownership. This will pave the way for a secondary inward listing of Canal+ on the Johannesburg Stock Exchange in place of MultiChoice, a company about its same size.

Combined, Canal+ and MultiChoice will serve more than 40 million subscribers across nearly 70 countries in Africa, Europe and Asia.

Canal+ will retain its primary listing in London. Its shares were up 0.3% to 240.60 pence midday Thursday for a GBP2.40 billion market capitalisation. MultiChoice shares were up 0.9% to ZAR123.55 in Johannesburg for a ZAR54.67 billion, or GBP2.35 billion, market cap.

Revenue in the nine months to September 30 fell 2.4% on-year to EUR4.61 billion from EUR4.72 billion a year prior. On an organic basis, however, it rose 2.1%. When including MultiChoice, revenue amounted to EUR4.68 billion.

Canal+ said it assumed "effective control" of MultiChoice late last month and is consolidating MultiChoice revenue with its own from September 20, contributing EUR78 million to the nine-month total reported on Thursday.

Canal+ said its own secondary inward listing on the JSE "will preserve South African investor access and market liquidity, allowing investors to hold shares in a leading global media and entertainment company on the JSE.

"It will also broaden the investor base of Canal+, reinforce the company's long-term commitment to South Africa and Africa's creative economy, and support continued institutional exposure to the media sector."

In addition, Canal+ has signed a deal to acquire a 34% stake in French cinema company UGC. "From 2028, Canal+ has the option to acquire the remaining stakes held by the UGC shareholders in the company," it noted.

Canal+ said it is on track to achieve its 2025 revenue guidance, which is for organic revenue growth. It also still expects to post earnings before interest, tax and amortisation of EUR515 million for the year. For 2024, Canal+ reported EUR503 million in Ebita on EUR6.45 billion in revenue.

The company also said it expects cash flow from operation to exceed EUR500 million in 2025, with more than EUR370 million in free cash flow.

By Tom Waite, Alliance News editor

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