French media giant Canal+ reported a 40 percent jump in first-half revenue after consolidating MultiChoice’s earnings, signalling early gains from its acquisition of Africa’s largest pay-TV operator as subscriber growth accelerated across the continent.
The company revealed to BusinessDay SA that group revenue rose to pound 4.29 billion in the six months ended June, driven largely by the inclusion of MultiChoice’s results following the completion of the takeover. Excluding MultiChoice, revenue grew 1.4 percent on a like-for-like basis.
The strong performance sent Canal+’s shares nearly eight percent higher on Tuesday, marking the company’s biggest one-day gain since its June listing on the Johannesburg Stock Exchange.
Adjusted Earnings Before Interest and Tax, before exceptional items, climbed 68 percent to pound 433 million, reflecting the contribution from MultiChoice, while adjusted EBIT excluding the African broadcaster rose 13 percent on operational improvements and seasonal demand.
The Paris-based firm which completed its years-long pursuit of MultiChoice earlier in June, said the acquisition is beginning to deliver the scale and operational benefits it had anticipated.
‘Our strong first-half results reflect our strategic progress,’ Maxime Saada, CEO at Canal+ said. ‘Revenue increased by 40 percent and adjusted EBIT by 68 percent, reflecting our increased scale after the acquisition of MultiChoice.’
The company said MultiChoice’s turnaround is gaining momentum as it expands its subscriber base, lowers entry costs for customers and strengthens premium sports and entertainment offerings across sub-Saharan Africa.
Subscriber acquisitions across the entertainment company markets rose 40 percent from a year earlier, with South Africa recording its strongest month for new subscribers in a decade. Canal+ attributed the growth to lower decoder prices, an expanded sales network and long-term broadcasting rights to the Premier Soccer League, as well as the 2027 Men’s and 2029 Women’s Rugby World Cups across sub-Saharan Africa.
MultiChoice’s adjusted EBIT before exceptional items surged 160 percent to pound 143 million, while Canal+ said its combined African subscriber base grew 7% during the period.
‘In Africa we have grown our combined subscriber base by seven percent,’ Saada said. ‘As part of the MultiChoice turnaround plan, we reduced entry costs for new subscribers and expanded our sales network.’
Beyond Africa, Canal+ announced a separate commitment to invest nearly pound 1 billion in French films over the next five years, part of an agreement aimed at strengthening its relationship with France’s creative industry.
Thecompany said it has already achieved half of its pound 250 million synergy target from the MultiChoice acquisition and remains on track to meet its full-year guidance.
It expects full-year revenue to remain broadly flat and adjusted EBIT to reach pound 735 million.
By mid-afternoon trading on Tuesday, Canal+ shares had risen 7.91 percent to R55.96 on the JSE, their biggest one-day gain since the stock debuted on the exchange in June.
The results provide the first clear indication that Canal+’s acquisition of MultiChoice is delivering financial and operational benefits. Strong subscriber growth and improving profitability suggest the French broadcaster is beginning to unlock value from Africa’s largest pay-TV business while positioning itself for further expansion across the continent.