Canal Plus Faces Revenue Challenges Following MultiChoice Subscriber Losses

The French broadcaster Canal+ has reported that its expansion efforts in Africa are expected to lead to a stagnation in revenue for the current year. This revelation follows the announcement that MultiChoice, the African television streaming service acquired by Canal+ for $2 billion, has seen a decline of 500,000 subscribers.

Maxime Saada, chief executive of Canal+, acknowledged that the company’s recent challenges were partly due to a reduction in investment in sales teams and an increase in subscription prices. He emphasized the need for a new commercial strategy, the hiring of personnel on the ground, and an enhanced content offering to stimulate growth.

Saada stated that the difficulties faced were anticipated and expressed no regrets about the acquisition. Adjusted profits for Canal+ have tumbled to €160 million, down from approximately €500 million in 2022. The company is keen to reinforce its subscriber base, which currently totals 14.4 million across MultiChoice.

Despite the setback in Africa, Canal+ reported a positive performance in Europe, gaining over one million new subscribers and additional growth in Asia and Africa. The company’s total subscriber count, including MultiChoice, now stands at 42.3 million.

Revenue for the year is projected to remain flat, although cost savings may lead to a slight uptick in adjusted operating profit. Canal+ anticipates moderate revenue growth and adjusted profits exceeding €850 million over the medium term.

The company has also forged a deal with Sky to produce English language drama, which includes a commitment to at least two projects annually over an initial three years, funded collaboratively by both entities. As the production industry undergoes consolidation to contend with competition from online platforms, Canal+ continues to explore strategic acquisitions, such as its recent agreement to acquire a 51 per cent stake in the Italian production company Lucky Red.

Two ongoing tax disputes in France have been resolved, resulting in combined charges of €441 million last year, as Canal+ navigates a challenging landscape in the media sector.