REG - Canal+ S.A - Canal+ Performance and Results on Track

Canal+ SAAnnouncement

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RNS Number : 7786L  Canal+ S.A  06 June 2025

 

Issy-les-Moulineaux, 6(th) June 2025

Canal+ (LSE:CAN, "CANAL+" or the "Company" or the "Group"), the global media
and entertainment company, today issues a press release.

 

Confirming CANAL+ Performance and Results on Track,

with Higher than Expected Cash Level

 

 * Confirmed 2025 revenue and EBITA outlook

 * Higher than expected cash level, ahead of the envisaged MultiChoice Group
acquisition

 * Update on litigation proceedings: agreement with CNC

 *

CONFIRMED 2025 OUTLOOK WITH MATERIAL ONE-OFF CASH IMPROVEMENT

Ahead of its first General Meeting today and six months into its listing,
CANAL+ is well positioned on its trajectory as a global media and
entertainment leader. Mid-year, the Company is in a position to confirm its
2025 outlook on revenue and EBITA, with a material 2025 one-off cash
improvement and structural cash improvements expected for the future.

As such, the Company confirms it is on track to deliver organic growth in
2025, more than offset by the termination of C8 channel and some contracts, as
expected.

As part of its ongoing cost optimisation assessment to deliver enhanced
operational leverage, and supported by the advanced transition to
profitability of its newly-integrated assets, CANAL+ anticipates 2025 Group
EBITA 1  (#_ftn1) to reach c. €515 million, in line with expectations.

In addition to its ongoing work on profitability and on improving cash
generation ahead of its Multichoice acquisition project, the Group began a
thorough review of all processes to ensure lasting optimised efficiencies.
This in-depth work on existing processes, supported by the Group's new
organisational structure 2  (#_ftn2) , has started generating structural
savings, which will gradually consolidate over time.

The Company has also recently focused on opportunistically strengthening its
balance sheet, ahead of the acquisition project of MultiChoice Group through
an all-cash Mandatory Tender Offer. As such, the Company has effectively
optimised the phasing of payment terms on various contracts, resulting in an
exceptional one-off improvement in working capital, which is expected to
meaningfully increase CFFO 3  (#_ftn3) this year.

Following the progress made on the proposed restructuring plan, the Company
now anticipates lower than expected restructuring disbursements in 2025,
leading to an additional positive net effect on 2025 CFFO. The remaining
restructuring cash spend is expected to take place in 2026.

As a result, the Group now expects its 2025 CFFO to exceed €500 million.
Although the Group does not expect its one-off contract phasing update to
structurally impact CFFO beyond 2025, it is confident that the positive cash
effects of its various other initiatives will start ramping up in 2026,
including the renewed French cinema financing agreement, the decrease in costs
in France and the profitability improvement of its new assets - GVA &
Dailymotion.

The Group remains committed to delivering sustainable shareholder returns and
strongly believes that a disciplined approach to organic and inorganic
profitable growth and cash generation, supported by a strong balance sheet,
will deliver meaningful long-term shareholder value. Once and if the proposed
Mandatory Tender Offer on MultiChoice Group is completed, the Company will
consider its capital allocation policy based on the actual outcome of the
envisaged Offer and the updated financial profile of the combined entity.

The Group is looking to provide return to shareholders through a progressive
dividend policy, while potentially considering share buyback opportunities in
due time, and has demonstrated its commitment towards its shareholders by
offering dividends starting from year one of being a listed company.

 

UPDATE ON LITIGATIONS

As part of its litigation proceedings, the Company engages in active
discussions with relevant authorities on VAT matters.

As previously reported in the 2024 Annual Report, the Group had also legally
challenged the rules applied by the Centre national du Cinéma et de l'Image
animée ("CNC") to the determination of the tax basis of the French Tax on
Television Services (the "French TST").

CANAL+ is pleased to have reached an agreement with the CNC regarding the
rules applicable to determining the tax basis of the French TST, which settles
the disputes relating to past fiscal years and removes uncertainty regarding
the possibility of a material additional disbursement. As a result, the Group
expects no impact on cash, with a one-off impact on its income statement in H1
2025 in the form of exceptional charges. As a reminder, the Company's H1 2025
results are scheduled to be released on 29(th) July 2025.

 

 

For further enquiries, please contact:

Alima Levy ir@canal-plus.com

Elvire Charbonnel elvire.charbonnel@canal-plus.com

Olivia Abehassera olivia.abehassera@canal-plus.com

About CANAL+

Founded as a French subscription-TV channel 40 years ago, CANAL+ is now a
global media and entertainment company. The group has 26.9 million
subscribers worldwide, over 400 million monthly active users on its video
streaming platforms, and a total of more than 9,000 employees. It generates
revenues in 195 countries and operates directly in 52 countries, with leading
positions in Pay-TV in 20 of them. 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 monetization; Thema, 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. It also operates
the iconic performance venues L'Olympia and Théâtre de l'Œuvre in France
and CanalOlympia in Africa.

CANAL+ has also significant equity stakes across Africa, Europe and Asia,
namely in MultiChoice (the Pay-TV leader in English and Portuguese-speaking
Africa), Viaplay (the Pay-TV leader in Scandinavia) and Viu (a leading
platform in Southern-Asia).

canalplusgroup.com/en
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 1  (#_ftnref1) Adjusted earnings before interest and income taxes, at
constant scope of consolidation and excluding non-recurring items

 2  (#_ftnref2) As announced on 15(th) April 2025

 3  (#_ftnref3) Cash Flow From Operations

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