Canal+ suffers lower nine-month revenue but completes MultiChoice buy
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 £2.40 billion market capitalisation. MultiChoice shares were up 0.9% to R 123.55 in Johannesburg for a R 54.67 billion, or £2.35 billion, market cap.
Revenue in the nine months to September 30 fell 2.4% on-year to €4.61 billion from €4.72 billion a year prior. On an organic basis, however, it rose 2.1%. When including MultiChoice, revenue amounted to €4.68 billion.
Canal+ said it assumed ‘effective control’ of MultiChoice late last month and is consolidating MultiChoice revenue with its own from September 20, contributing €78 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 €515 million for the year. For 2024, Canal+ reported €503 million in Ebita on €6.45 billion in revenue.
The company also said it expects cash flow from operation to exceed €500 million in 2025, with more than €370 million in free cash flow.
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