CANAL+ SA Posts 40% Revenue Surge in H1 2026 Fueled by MultiChoice Integration and Strategic Turnaround

CANAL+ Advances Dual Growth Strategy with MultiChoice Integration and European Expansion Driving H1 Results

In the first half of 2026, CANAL+ SA demonstrated significant financial growth, successfully integrating MultiChoice while sustaining momentum across its established operations. Operating over 40 million subscriber accounts in more than 70 countries, the company posted total Group revenue of 4,287 million for the six months ending 30 June 2026, a 40% rise from 3,072 million in H1 2025. Excluding MultiChoice consolidation, revenue grew 1.4% on a like-for-like basis, reflecting organic expansion in Europe and Africa & Asia. This dual growth highlights the acquisition’s scale benefits alongside ongoing core business development.

Profitability outpaced revenue growth, with Adjusted EBIT before exceptional items increasing 68% to 433 million from 257 million in H1 2025. The 10.1% Adjusted EBIT margin reflects enhanced operational leverage and MultiChoice’s significant contribution. Excluding MultiChoice, Group Adjusted EBIT rose 13%, driven by operational efficiencies and favorable seasonality. Europe benefited from cost reviews, strong direct-to-consumer subscriber gains, reduced churn, and a shift to over-the-top distribution in Poland. Africa & Asia, excluding MultiChoice, saw 9% Adjusted EBIT growth fueled by Pay-TV and fibre-to-the-home revenue expansion. These improvements across geographies and business lines underscore CANAL+’s strategic execution.

MultiChoice Turnaround Accelerates with Record Subscriber Growth and Strategic Content Acquisitions

The MultiChoice turnaround, central to CANAL+’s acquisition rationale, gained momentum in H1 2026 with operational gains and landmark content deals. Subscriber acquisition in MultiChoice markets surged 40% year-over-year, with June 2026 marking South Africa’s strongest monthly intake in a decade. This growth was driven by reduced equipment prices, a 15% expansion in distribution points since March 2026, and targeted content and marketing efforts including the Novelas+ channel and a World Cup campaign starring Idris Elba. MultiChoice’s Adjusted EBIT before exceptional items soared 160% to 143 million from 55 million in H1 2025, with approximately 120 million attributed to synergy realization, including the Showmax service discontinuation in April 2026.

Content strategy remains pivotal, with MultiChoice securing long-term rights to South Africa’s Premier Soccer League and the Men's 2027 and Women's 2029 Rugby World Cups across sub-Saharan Africa. These rights reinforce its premium live sports position in the region. The company also advances diverse productions such as its first major South African film, The Road Home, alongside acquisitions and co-productions like Heist of Benin and the adaptation of the bestselling novel Americanah. These initiatives, combined with pricing and distribution improvements, position MultiChoice for sustained subscriber and profitability growth.

STUDIOCANAL’s Theatrical Success and Franchise Expansion Strengthen European Content Production

STUDIOCANAL, CANAL+’s premier European film and TV studio, showed strong momentum in H1 2026 with notable theatrical releases and development projects. Hits like Guru in France and Pressure in the US, plus securing the largest film deal at the 2026 Cannes Film Festival with The Midnight Library, highlight its content leadership. The studio’s development pipeline focuses on franchise adaptations and literary works, enhancing long-term profitability.

Major projects include Paddington 4 with top-tier talent, building on the franchise’s success, and Paddington the Musical’s anticipated Broadway debut. Point Break is being developed as a TV series with Alcon Television Group and AMC Global Media. A joint venture with Hachette Livre facilitates adaptations of bestselling books. STUDIOCANAL also acquired film rights for Freida McFadden’s The Divorce in collaboration with Working Title and is developing Zack Snyder’s Escape from New York remake alongside Danny Boyle’s Ink, reflecting engagement with acclaimed properties and creators.

Expanded Premium Content Rights Including UEFA, America’s Cup, and French Cinema Through 2030s

CANAL+ reinforced its premium entertainment leadership in H1 2026 by securing and renewing major content rights. UEFA men's club competition rights were extended to 2031 in Switzerland, Poland, and Austria, while Belgium’s exclusive UEFA rights were secured ahead of CANAL+’s 2027 market entry. The company also acquired America’s Cup sailing rights across Europe and Africa, diversifying its sports portfolio.

In French cinema, CANAL+ extended its exclusive six-month theatrical release window through 2032, reaffirming its role as French cinema’s primary partner. CEO Maxime Saada emphasized this extension’s strategic importance, highlighting CANAL+’s unique position. The comprehensive content rights portfolio across sports, theatrical releases, and production supports subscriber acquisition and retention across direct-to-consumer and wholesale channels.

Strong Cash Flow Growth Supports Deleveraging and Investment Despite Seasonal Variations

CANAL+ improved cash flow generation in H1 2026, with cash flow from operations before exceptional items rising 30% to 559 million from 429 million in H1 2025. Free cash flow before exceptional items increased to 414 million from 383 million. This performance reflects cash optimization, favorable content cost timing, and MultiChoice’s fiscal year-end alignment. However, the company noted positive seasonality effects impacting Adjusted EBIT and cash flow, suggesting moderated growth in H2 2026.

Robust cash flow supports deleveraging post-MultiChoice acquisition, content and technology investments, and potential shareholder returns. Although H1 2026 cash flow improved versus prior-year excluding MultiChoice, it was lower compared to H1 2025 including MultiChoice due to timing of exceptional items and integration. Underlying cash optimization initiatives indicate sustainable improvements beyond seasonal factors.

Synergy Realization Hits Midpoint of 2026 Target, Reinforcing Full-Year Outlook

CANAL+ achieved 125 million of its 250 million 2026 Adjusted EBIT synergy target by midyear, reaching 50% realization. The company remains on track to meet full-year objectives despite macroeconomic challenges. Synergies arise from procurement efficiencies, function consolidations, content purchasing leverage, and MultiChoice operational improvements. The discontinuation of Showmax contributed 120 million of synergies, eliminating overlapping streaming costs, with an additional 5 million from operational gains.

Management confirmed full-year 2026 guidance amid uncertainties, forecasting flat revenue, Adjusted EBIT of 735 million, cash flow from operations above 600 million, and free cash flow exceeding 250 million before exceptional items. The guidance anticipates H2 Adjusted EBIT of 302 million, reflecting seasonal and exceptional item impacts, demonstrating transparent communication on expected performance moderation.

Geographic and Channel Diversification Mitigate Market Risks and Drive Subscriber Growth

CANAL+’s subscriber base grew 8.4% to 41.157 million as of 30 June 2026, with European subscribers rising 10.0% to 18.567 million and Africa & Asia subscribers increasing 7.2% to 22.591 million, now surpassing Europe. MultiChoice accounts for the majority of the latter region’s subscribers, reflecting strategic expansion into emerging markets while maintaining strong presence in mature markets.

Distribution shifted towards higher-margin direct-to-consumer subscribers, which grew 5.1% to 33.701 million, complemented by a 26.3% increase in wholesale subscribers to 7.456 million through partnerships with telecom operators. This diversification reduces exposure to mature European pay-TV market constraints and positions CANAL+ to capitalize on emerging markets and alternative distribution models.

Full-Year 2026 Guidance Affirms Strategic Confidence with Stable Revenue and Strong Cash Flow

CANAL+ reiterated full-year 2026 guidance, reflecting confidence despite macroeconomic uncertainties. Revenue is expected to remain flat, balancing mature European markets with growth in Africa & Asia and MultiChoice consolidation timing. Adjusted EBIT before exceptional items is forecast at 735 million, with H2 performance of 302 million, down from H1 due to seasonality and content cost normalization. Cash flow from operations is projected above 600 million, with free cash flow exceeding 250 million before French VAT litigation settlement and restructuring costs. Excluding exceptional items offers clarity on core operational results.

This outlook acknowledges mature market challenges offset by emerging market opportunities. Management’s guidance, mindful of geopolitical and economic factors, indicates confidence that these do not threaten target achievement. The free cash flow target supports debt reduction, content investment, and shareholder returns, aligning with long-term value creation. Transparency regarding exceptional costs provides investors with comprehensive insight.

Investor Considerations: Monitoring Integration, Seasonality, and Macroeconomic Impact

Investors should closely watch MultiChoice turnaround execution through 2026, focusing on subscriber acquisition sustainability, content investment returns, and margin growth. June 2026’s record South African subscriber intake indicates momentum, but assessing whether this is sustainable or a cyclical peak is crucial. The 40% year-over-year subscriber acquisition increase is significant, though guidance suggests growth normalization. MultiChoice’s Adjusted EBIT growth depends on continued subscriber gains, content effectiveness, and synergy realization beyond Showmax discontinuation.

Seasonality effects warrant attention, as H1 2026 benefited from content cost phasing, payment deferrals, and promotional timing unlikely to recur in H2, potentially moderating cash flow and profitability. Macroeconomic and geopolitical factors introduce risks to subscriber growth, churn, and pricing across markets. European markets face energy inflation, consumer spending pressures, and competition from tech entrants, while African markets contend with currency volatility and economic instability. Monitoring quarterly results for these impacts is advised.