11th Mar 2026 10:32
(Alliance News) - Canal+ SA on Wednesday said it plans to invest EUR100 million in newly acquired MultiChoice Group to boost declining subscriber numbers at the African video entertainment company.
The Paris-based media and entertainment group said Multichoice is facing a EUR140 million negative adjusted earnings before interest and tax impact in 2026 from inertia of subscriber base driving decrease in revenues, and from cost inflation.
"After experiencing impressive growth from 2010 to 2023, MultiChoice has faced challenges since the combined effects of macro-economic factors, a difficult transition to
[over-the-top] with the expensive failure of Showmax, and strong inflation across most cost items, especially content, negatively impacted its profitability," Canal+ said in a statement.
Revenue at Multichoice decreased by 6% to EUR2.40 billion in 2025 from EUR2.54 billion in 2024, driven by decline in subscriber base to 14.4 million from 14.9 million.
Adjusted Ebit fell 14% to EUR159 million from EUR185 million.
In response, shares in Canal+ plunged 16% to 248.30 pence each in London on Wednesday.
To restart subscriber growth at Multichoice, Canal+ said it will launch a growth boost plan and accelerate delivery of cost synergies which are expected to reach EUR250 million in 2026, up from EUR150 million announced in January.
Adjusted earnings before interest and tax are forecast of around EUR170 million for MultiChoice in 2026, up from EUR159 million in 2025.
Cash flow from operations and free cash flow before restructuring costs are expected to reach EUR100 million and negative EUR50 million respectively.
Group adjusted Ebit is forecast at EUR735 million in 2026, with above EUR600 million CFFO and above EUR250 million FCF.
In the medium-term, the combined Canal+ Group is expected to increase adjusted Ebit above EUR850 million, above EUR800 million for CFFO and above EUR500 million for FCF.
In 2025, Canal+ said adjusted Ebit totalled EUR646 million, including around three months contribution from MultiChoice and excluding Vietnam.
Excluding Multichoice, Canal+ reported adjusted Ebit of EUR527 million in 2025, up from EUR503 million in 2024.
Revenue fell to EUR6.29 billion from EUR6.45 billion, but rose 0.9% on an organic basis.
CFFO was EUR587 million, up from EUR218 million in 2024, while FCF multiplied to EUR428 million from EUR29 million.
The dividend was increased 10% to 2.2 euro cents.
In addition, Chief Executive Maxime Saada said Canal+ expects to list on the Johannesburg Stock Exchange "soon".
By Jeremy Cutler, Alliance News reporter
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