Canal+ reported it exceeded its 2025 financial guidance in its first full year as a listed company, while outlining a turnaround plan for newly acquired MultiChoice and providing a first medium-term outlook for the combined group. Management emphasized stronger cash generation, improved profitability in Europe, and accelerated cost synergies following the MultiChoice transaction, alongside a decision to discontinue the loss-making Showmax streaming service.
2025 performance beat guidance on key metrics
CEO and Chairman Maxime Saada said 2025 was “a very successful first year” as a listed company, with the group achieving or exceeding its financial objectives. On the historical Canal+ perimeter (excluding MultiChoice and excluding Vietnam, which was discontinued), Canal+ guided to adjusted EBIT of €515 million and delivered €542 million excluding Vietnam. Cash flow from operations (CFFO) came in at €606 million excluding Vietnam versus guidance of more than €500 million, and free cash flow reached €448 million excluding Vietnam versus guidance of more than €370 million.
Segment trends: Europe profitability up; StudioCanal resilient; Africa margins stayed above 20%
Ferré said Europe delivered a “real turnaround,” with profitability improving by one percentage point year-over-year. She attributed the improvement to both top-line performance—1.1% organic revenue growth—and cost reductions. Saada added that Europe adjusted EBIT rose 15% in 2025.
In Africa and Asia on the historical Canal+ perimeter (excluding MultiChoice), end-of-year subscribers increased by 1 million, again with a one-off AFCON effect. Revenues rose by more than 3%, while profitability remained “very high” with a margin rate above 20% despite higher content costs and subscriber acquisition investment.
In content production and distribution, revenues declined slightly, which Ferré linked to StudioCanal’s “exceptional slate in 2024” including Paddington and Back to Black. Management stressed StudioCanal’s ability to maintain bottom-line performance even in a more normal release year. Saada also pointed to improved economics at Dailymotion, with revenues up more than 20% and the business “close to now breaking even.”
Tax settlement drove large 2025 exceptional items; cash generation highlighted
One of the biggest items discussed was the resolution of Canal+’s French TST and VAT tax disputes. Ferré said the settlement provides clarity on the company’s tax regime going forward, but it resulted in significant exceptional costs booked in 2025. Canal+ recorded €346 million of exceptional impact on adjusted EBIT, driven primarily by a VAT settlement amounting to €363 million (partially provisioned previously), alongside TST settlement elements and fees related to the MultiChoice acquisition.
Despite the exceptional items, management highlighted cash performance. Starting from €542 million of adjusted EBIT, Canal+ posted a 119% cash conversion rate, reaching €648 million CFFO before exceptional items and €606 million after exceptional items. After taxed interest and other financial items, free cash flow for 2025 was close to €450 million.
2026 guidance: Canal+ perimeter growth, but Europe revenue pressure; VAT payments uncertain
For 2026 on the historical Canal+ perimeter (excluding MultiChoice and excluding discontinued Vietnam), Ferré guided to moderate organic revenue growth and adjusted EBIT rising to €565 million from €542 million, driven mainly by continued margin improvement. Management expects adjusted EBIT margin to exceed 9% in 2026, up from 8.7% in 2025.
Canal+ expects more than €500 million of CFFO before payment of the VAT settlement and other restructuring costs, and more than €300 million of free cash flow before VAT and restructuring. Ferré described these targets as “floors” the company intends to exceed, noting the VAT payment schedule for the €363 million settlement was not finalized, though management indicated a “large part” would likely be paid in 2026 and the remainder in 2027.
In response to a question on revenue trends, Ferré said Europe is expected to decline in 2026, citing a change of offers linked to the VAT settlement’s implications and weakness in the former M7 perimeter, where Canal+ is shifting strategy away from lower-priced channel-bundle models. She said the European decline should be offset by growth in French-speaking Africa and GVA within the former Canal+ perimeter.
MultiChoice: reversing a “negative cycle,” ending Showmax, and accelerating synergies
Canal+ began consolidating MultiChoice from Sept. 20, providing unaudited pro forma 12-month figures for context. Ferré described MultiChoice’s recent challenges as a negative cycle that began in 2023, driven by macro headwinds (including currency devaluation in Nigeria and power cuts), strong inflation (especially in content), and “the expensive failure of Showmax.” She said MultiChoice addressed pressure through short-term measures such as reduced subscriber acquisition subsidies and price increases, which then further weighed on subscriber trends.
Management said MultiChoice trading profits declined by about €150 million per year over the last two years, from roughly €500 million at its peak to around €200 million by March 2025. For 2025 (year ended December), MultiChoice adjusted EBIT was €159 million, while pro forma free cash flow was negative €79 million. Ferré noted cash conversion in 2025 was inflated by deferred payments made to meet bank covenants, and that 2025 also included a €43 million tax provision due to a change in fiscal year-end.
For 2026, Canal+ expects continued inertia in subscriber declines with a slight revenue decrease, but aims to lift MultiChoice adjusted EBIT to about €170 million. Ferré explained the bridge from 2025 to 2026 included:
- Approximately €140 million of negative impact from top-line decline and cost inflation.
- About €100 million of investment to restart customer acquisition (the “Boost plan”), with roughly 90% described as variable.
- Acceleration of cost synergies, with management now targeting €250 million of cost reductions by the end of the year versus a prior €150 million figure.
Saada and Ferré said the group expects to deliver at least €250 million of adjusted EBIT synergies and €220 million of free cash flow cost synergies “as soon as 2026,” noting these are not additional synergies but rather pulled forward from later years. The acceleration increases restructuring costs, with Canal+ now estimating 2026 restructuring costs of €70 million to €100 million.
Management repeatedly highlighted the discontinuation of Showmax, calling it “bleeding money.” Saada said Canal+ could not disclose terms of the confidential agreement with Comcast, but was “very happy with the terms,” which end financial commitments and enable quicker synergies. In Q&A, management said Showmax losses were “in excess of €100 million,” while noting some costs, particularly certain content, were mutualized and would remain because it still provides value to subscribers.
On streaming strategy in Africa post-Showmax, Saada said the group remains ambitious on OTT but intends to pursue it using a platform it owns outright. MultiChoice CEO David Mignot added Canal+ is ensuring Showmax features and content migrate so customers have alternatives, citing overlap with DStv Stream and existing group technology.
For the combined group, Canal+ guided to 2026 adjusted EBIT of €735 million, with CFFO over €600 million and free cash flow over €250 million. Management’s medium-term outlook (described as roughly 2028–2029) called for moderate top-line growth, adjusted EBIT above €850 million, CFFO above €800 million, and free cash flow above €500 million, which executives repeatedly characterized as a “bare minimum.”
About Canaan (LON:CAN)
Founded as a French subscription-TV channel 40 years ago, CANAL+ is now a global media and entertainment company. Following its acquisition of MultiChoice Group, a leading entertainment platform in Africa, the combined Group has 40 million subscribers, operates in over 70 countries and has approximately 17,000 employees. CANAL+ is one of the largest media companies in Europe, the market leader in Africa and has a globally recognised brand (Top 50 Most Valuable French Brands, globally. Source: Kantar BrandZ, 2025).
CANAL+ operates across the entire audio-visual value chain, including production, broadcast, distribution and aggregation.
