Canal+ backs outlook, half year profit falls as MultiChoice buy nears
Canal+ SA on Tuesday reported weaker first half earnings but affirmed its annual outlook.
Shares in the company rose 4.7% to 240.30 pence each in London on Tuesday morning.
The Paris-based subscription television and video streaming said pretax profit in the half year ended June 30 declined 26% to €120 million from €162 million. Revenue fell 3.3% to €3.09 billion from €3.19 billion. However, it rose 0.9% organically.
Canal+ put the earnings decline down to the termination of some contracts and discontinued activities. It noted the end of a sublicensing partnership with the UEFA Champions League, the top-tier European football competition.
‘I am pleased with all we have accomplished at Canal+ since our listing. We are on track to achieve organic revenue growth in 2025. Our focus on profitability and cash has started delivering structural improvements, put us in a strong position at the half year,’ Chief Executive Officer Maxime Saada said.
Canal+ made its London debut in December, splitting from Vivendi SA.
Canal+ said half-year adjusted earnings before interest and tax fell 22% to €246 million from €315 million. For the full-year, it still expects an outcome of around €515 million.
The company also announced it raised over €285 million through the issue of a Schuldschein loan, a private placement loan issued under German law.
‘The issuance was highly oversubscribed with an orderbook consisting of high-quality French and international investors, demonstrating strong interest and confidence of investors in the financial profile and strategic direction of Canal+. Due to the high level of demand, which facilitated pricing at the tight end of the spread range, the total financing package was increased, from an initial launch volume of €125 million to a final volume of €285 million. The attractive pricing and scale of the Schuldschein loan will improve Canal+’s overall cost of funds,’ the firm said.
Last week, the Competition Tribunal of South Africa approved a deal for Canal+ to buy Johannesburg-listed MultiChoice Group Ltd. Last year, it made a bid to buy MultiChoice shares it did not already own for R 125 each, R 35.37 billion in total, around £1.48 billion.
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