REG - Canal+ S.A - CANAL+ MULTICHOICE SYNERGIES UPDATE

Canal+ SAAnnouncement

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RNS Number : 8152Q  Canal+ S.A  29 January 2026

 

CANAL+ SA (LSE : CAN)

Issy-les-Moulineaux, 29 January 2026

This announcement contains Inside Information

 

CANAL+ and MultiChoice Group 2030 run-rate cost synergies target:

Over €400m EBITA and over €300m FCF

 

CANAL+ SA (LSE: CAN, the "Company" or the "Group"), the global media and
entertainment company, announces today the expected cost synergies resulting
from the acquisition of MultiChoice Group ("MCG").

Maxime Saada, Chief Executive Officer of CANAL+, said:

"With the acquisition of MultiChoice, CANAL+ has created a unique global
entertainment platform anchored in Europe and Africa. Our increased scale will
enable us to generate substantial synergies, particularly across our cost
base. I am highly confident we will deliver over €400m EBITA and over
€300m FCF run-rate cost synergies from 2030, but it is the growth
opportunity this presents that I am most excited about. We are well positioned
to benefit from growth in Africa and capitalise on the significant
opportunities ahead.

"Over the last 10 years we have quadrupled the size of our subscriber base to
reach 40m subscribers and become the market leader in around 40 countries
across Europe and Africa. We have created an entertainment business of global
scale, underpinned by robust financials, an unrivalled distribution footprint,
a diverse content portfolio, including significant local and global content
and IP, our own world-class production capabilities and entertainment
platforms, and strong and long-standing partnerships with leading studios,
streamers and sports rights holders."

Key points:

·   The acquisition of MCG is transformational for the Group, providing
strong long-term growth potential and global scale

·    The Group is well-positioned to capitalise on the high potential
African market:

o Combined CANAL+ and MCG management team now in charge of all African
markets under David Mignot's leadership. Both teams have a successful track
record of delivering organic growth across the continent

o Unmatched combined local and global content portfolio, built on in-house
capabilities and strong partnerships

o  Best-in-class CANAL+ app already deployed across close to 30 countries on
the continent

o  Extensive distribution network and strong brands provide capability to
capture growth

·    With increased economies of scale, CANAL+ will deliver significant
synergies from content, technology and other costs at Group level. Expected
cost synergies compared to the estimated combined 2025 cost baseline of c.
€8bn:

o  2026: over €150m EBITA 1  / over €150m FCF(1, 2 ). On FCF, over €80M
has already been secured(1)

o  2028: over €300m EBITA(1) / over €250m FCF(1,2)

o  From 2030 onwards (run-rate): over €400m EBITA(1) / over €300m
FCF(1,2)

·    Implementation costs are expected to amount to c.€35m in 2026,
c.€40m in 2028 and c.€20m in 2030

 

Strategic rationale for the acquisition of MCG

The Group has quadrupled its subscriber base over the last 10 years, and,
following the MCG acquisition, it now has a subscriber base of over 40m.
Anchored in Europe and Africa, CANAL+ is now a global leader in media and
entertainment, and the market leader in c.40 countries. The Group is
strategically positioned to leverage the growth opportunities in the
high-potential African market, to achieve its ambition to reach 50-100m
subscribers and to optimise its costs at a global level.

Immediately following completion of the acquisition, the integration of MCG
and CANAL+ commenced with the creation of a diverse and unified management
team, and the implementation of structures and processes aligned with Group
policy. Following an in-depth review, significant synergy opportunities have
been confirmed, and the Group is today providing details of the expected
synergies from the acquisition.

Capturing African growth opportunities

The strong expected growth of the African market is driven by structural
long-term demographic (+800m population growth by 2050), economic (5-year GDP
growth forecast of 4.5% p.a.), and industrial (increasing electrification and
Pay-TV penetration rates) trends. The Group has a strong track record of
capturing growth in the region, as shown by the increases in CANAL+ Africa's
subscriber base from 0.4m to 9m between 2010 and 2025 and in MCG's subscriber
base from 3.9m to 14.1m between 2010 and 2025, and is best placed to get MCG
back to its pre-2023 growth trajectory.

Building on its robust position across the continent, the combined Group has
started to roll-out a comprehensive action plan focused on returning MCG
countries back to growth through short and medium-term initiatives. Further
elements of the Group's plan for MCG markets will be provided at the CANAL+
Strategic Update, which will be published alongside the Company's Full Year
Results.

Leveraging global scale to deliver significant cost synergies at Group level

The Group will leverage its increased scale and footprint to optimise its
estimated c.€8.0bn cost base in 2025 at global level (c.€4.6bn for content
and c.€3.4bn for technology & other). Multiple cost synergy
opportunities have been identified and quantified in the areas of content,
technology and other costs. EBITA cost synergies(1) are expected to ramp-up
from over €150m in 2026 to over €300m in 2028, before reaching full
run-rate level of more than €400m from 2030. On a Free Cash Flow(1,2) basis,
the yearly impact is expected to grow from over €150m in 2026, to over
€250m in 2028 and €300m run-rate in 2030.

The areas of cost synergies comprise:

·    Content - includes rationalisation of internal content and
negotiations with sport and general entertainment right holders.

·    Technology and Other - includes renegotiation of hardware prices,
optimisation of broadcast infrastructure, convergence of tech infrastructure,
scaling of procurement best practices, rationalisation of brand and marketing,
optimisation of financing costs and reduction of structural support costs.

Actions taken since gaining control of MCG in September 2025 have already
secured FCF synergies of over €80m 3  for 2026 including:

·    New content partnerships

·    Renegotiation of hardware prices

·    Optimisation of tech & broadcasting infrastructure

·    Refinancing of MCG's long-term debt

Delivery of integration and synergies

To ensure the successful delivery of synergies, a unified management team for
Africa has been created, capitalising on the combined talent pool from CANAL+
and MCG. Short-term incentive schemes were updated for all members of the
management team involved in the delivery of synergies to reflect synergy
targets. In addition, key Group functions have been centralised to leverage
global scale, including sport and entertainment content acquisition,
technology and procurement. A robust governance structure has been established
to drive synergy capture, comprising: a strategy and tracking office to ensure
rigorous monitoring of synergy delivery and an integration and transformation
office to drive implementation.

Presentation and Q&A session for investors and analysts - 29 January 2026

A pre-recorded presentation by Maxime Saada, Chief Executive Officer, Amandine
Ferré, Chief Financial Officer, and David Mignot, CEO of CANAL+ Africa, will
be webcast at 08:30 GMT / 09:30 CET. The presentation will be followed by a
Q&A session with management starting at approximately 08:50 GMT / 09:50
CET.

To watch the presentation and the Q&A session please click here
(https://sparklive.lseg.com/CANALSA/events/68f608cc-473b-4bcc-9176-1ad4c6d7389d/canal-results)
.

To participate in the Q&A session, please contact ir@canal-plus.com
(mailto:ir@canal-plus.com) for details.

The slides used for the presentation, the recording and a replay of the
Q&A session will be available here
(https://www.canalplusgroup.com/en/results-and-publications) .

Notice of results for the year ended 31 December 2025 and strategic update for
the combined Group

The Group intends to announce its results for the year ended 31 December 2025
on 11 March 2026. The Group will also be providing an update on the strategy
for the combined Group including MCG.

For enquiries please contact:

 Investors and analysts  h2Radnor        ir@canal-plus.com

 Media                   Andrew Swailes  andrew.swailes@canal-plus.com

 

Market Abuse Regulation Statement

This Announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 as it forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of this
Announcement via a Regulatory Information Service, this inside information is
considered to be in the public domain. The person responsible for arranging
the release of this announcement on behalf of Canal+ S.A is Laëtitia
Ménasé, Company Secretary.

 

ABOUT CANAL+

Founded as a French subscription-TV channel 40 years ago, CANAL+ is now a
global media and entertainment company. On 22 September 2025, CANAL+ confirmed
it is in effective control of MultiChoice Group and beginning the integration
process. MultiChoice is Africa's leading entertainment platform, offering a
wide range of products and services, including DStv, GOtv, Showmax, M-Net,
SuperSport, Irdeto, and KingMakers. Together, the new combined group has 40
million subscribers worldwide, operates in over 70 countries and has
approximately 17,000 employees.

CANAL+ operates across the entire audio-visual value chain, including
production, broadcast, distribution and aggregation. It is home
to STUDIOCANAL, a leading film and television studio with worldwide
production and distribution capabilities; Dailymotion, major international
video platform powered by cutting-edge proprietary technology for video
delivery, advertising, and monetisation; CANAL+ Distribution, a production
and distribution company specialising in creating and distributing diverse
content and channels; and telecommunication services, through GVA in Africa
and CANAL+ Telecom in the French overseas jurisdictions and territories.

CANAL+ also has significant equity stakes in Viaplay (the Pay-TV leader in
Scandinavia), Viu (a leading OTT platform in Southern Asia) and UGC, a
leading French cinema group.

canalplusgroup.com/en
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Important Notice

This announcement is for information purposes only and does not constitute,
nor is to be construed as, an offer to sell or the recommendation,
solicitation, inducement or offer to buy, subscribe for or sell shares in the
Company or any other securities.

No reliance may or should be placed by any person for any purpose whatsoever
on the information contained in this announcement or on its completeness,
accuracy or fairness. Recipients of this announcement should conduct their own
investigation, evaluation and analysis of the business, data and property
described in this announcement. The information in this announcement is
subject to change.

Forward-looking statements

This announcement contains certain statements that are or may be
forward-looking statements. Phrases such as "aim", "plan", "expect", "intend",
"anticipate", "believe", "estimate", "target", and similar expressions of a
future or forward-looking nature are intended to identify such forward-looking
statements. Forward-looking statements address our expected future business
and financial performance and financial condition, and by definition address
matters that are, to different degrees, uncertain. They are not historical
facts, nor are they guarantees of future performance; actual results may
differ materially from those expressed or implied by these forward-looking
statements. There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied by such
forward looking statements. These include, but are not limited to (i) the
general economic, business, political, regulatory and social conditions in the
key markets in which the Group operates, (ii) a significant event impacting
the Company's liquidity or ability to operate and deliver effectively in any
area of our business, (iii) significant change in regulation or legislation,
(iv) a significant change in demand for global content, and (v) a material
change in the Group strategy to respond to these and other factors. In
particular, statements of estimated costs savings and synergies relate to
future actions and circumstances which, by their nature, involve risks,
uncertainties and contingencies. As a result, the costs savings and synergies
referred to in this announcement may not be achieved, may be achieved later or
sooner than estimated, or those achieved could be materially different from
those estimated. No statement in this announcement should be construed as a
profit forecast or interpreted to mean that the Company's earnings in the
first full year following the acquisition of MCG, or in any subsequent period,
would necessarily match or be greater than or be less than those of either the
Company or MCG independently for the relevant preceding financial period or
any other period.

Forward-looking statements speak only as of the date they are made and, expect
as required by applicable law or regulation, CANAL+ undertakes no obligation
to update any forward-looking statements, whether written or oral, that may be
made from time to time, whether as a result of new information, future events
or otherwise.

 

 1  Before implementation costs

 2  After payment of interests and taxes

 3  Before implementation costs

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