REG - Canal+ S.A - CANAL+ Q1 2026 Trading Update

Canal+ SAAnnouncement

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RNS Number : 1045C  Canal+ S.A  28 April 2026

 

 

 

PRESS RELEASE

Issy-les-Moulineaux, 28 April 2026

Trading Update for the Three Months ended 31 March 2026

CANAL+ SA (LSE: CAN, the "Company" or the "Group"), the global media and
entertainment company, is today providing a trading update for the three
months ended 31 March 2026.

Combined Group revenue broadly flat

Slight growth on CANAL+ historical basis

Operational execution phase of strategy underway

Roll-out of the MultiChoice turnaround plan and delivery of synergy plan in
line with expectations

Secondary listing on the Johannesburg Stock Exchange on track for 3 June 2026

Guidance reiterated for 2026

MAXIME SAADA, CHIEF EXECUTIVE OFFICER OF CANAL+, SAID:

"We have made a solid start to 2026 as we begin the operational execution
phase of our strategy. First quarter revenue was broadly flat, with slight
growth on the CANAL+ historical basis (excluding MultiChoice), while
MultiChoice revenue continued to decline in line with our expectations.

 

"In France and Poland, we continue to exercise rigorous cost discipline, and
we are starting to see the impact of the measures introduced last year,
consistent with our ambition to increase profitability in Europe.

 

"In Africa, the first initiatives of the MultiChoice turnaround plan have been
launched, including strengthening the commercial engine and recruiting new
sales teams.

 

"STUDIOCANAL had a positive start to the year with strong box office
performances from Guru and Children of the Resistance in France, Extrawurst
and Woodwalkers 2 in Germany, and The Housemaid in New Zealand and Australia.

 

"We continue to deliver cost synergies resulting from the acquisition of
MultiChoice, in line with our plans, and we reiterate our full-year 2026
guidance.

 

"Finally, we are preparing CANAL+'s secondary listing on the Johannesburg
Stock Exchange on 3 June, the first French company to do so, marking an
important milestone for CANAL+."

 

 

REVENUE FOR THE THREE MONTHS ENDED 31 MARCH 2026 (UNAUDITED)

 

 €M                                                Q1 2026(1,3)  Q1 2025 restated(1), excluding MultiChoice  % Change  Q1 2025          % Change  % Like-For-Like Change(4)
                                                                                                                       restated(1),
                                                                                                                       including

                                                                                                                       MultiChoice(2)
 Europe                                            1,127         1,146                                       (1.6%)    1,146            (1.6%)    (2.1%)
 Africa & Asia                                     889           260                                         242.6%    900              (1.2%)    0.8%

incl. MultiChoice Group
 Content Production, Distribution and Other        172           158                                         9.0%      158              9.0%      5.2%
 Eliminations                                      (19)          (24)                                        N/A       (24)             N/A       N/A
 Total CANAL+ Group                                2,169         1,539                                       41.0%     2,179            (0.4%)    (0.2%)
 Of which MultiChoice Group                        617           N/A                                         N/A       657(2)           (6.2%)    (4.0%)
 Of which Showmax(3)                               9             N/A                                         N/A       12               (25.0%)   N/A
 Of which elimination linked to MultiChoice Group  (14)          N/A                                         N/A       (17)             N/A       N/A
 CANAL+ excl. MultiChoice Group                    1,567         1,539                                       1.8%      1,539            1.8%      1.5%

 

(1) In 2025, the Group started the process of divesting its activities in
Vietnam. Contributions relating to the Vietnam business are now excluded from
revenue for the three months to 31 March 2025 and 2026. Q1 2025 revenue has
therefore been restated to exclude Vietnam.

(2) The Q1 2025 restated was adjusted to include the contribution of
MultiChoice as if the acquisition had occurred on 1 January 2025. This
unaudited information is prepared and provided to assist comparison with
revenues for Q1 2026 of the Group.

(3) The Showmax service in Africa will be phased out end of April 2026 and as
such the financial contribution from Showmax will be shown as a 'discontinued
operation' effective from 1 May 2026. Results for Q1 2025 and 2026 therefore
still include Showmax revenue for the three months to 31 March 2025 and 2026
of €12m and €9m, respectively.

(4) Like-for-like Q1 2026 revenue growth calculated at constant scope (such
that the revenues of the prior period are adjusted to reflect the acquisitions
and disposals of the current period) and currency (such that the foreign
currency exchange rate in the current period is applied to the prior period
results).

 

TRADING UPDATE FOR THE FIRST QUARTER 2026

 

Combined CANAL+ Group

Total Group revenue increased by 41% to €2,169 million, compared to the
first three months of 2025 on a restated basis excluding MultiChoice Group,
reflecting the significant contribution of the MultiChoice acquisition to the
change in scale of the Group. Total Group revenue remained broadly flat
(-0.4%) compared to the first three months of 2025 on a restated basis,
including three months contribution from MultiChoice Group ended 31 March
2025.

 

Group revenue excluding MultiChoice increased by 1.8% to €1,567 million,
mainly driven by the strong performances of Pay-TV in French speaking Africa
and growth in the Content Production, Distribution and Other segment.

 

Europe

Europe revenue decreased by 1.6% to €1,127 million on a reported basis and
decreased by 2.1% on a like-for-like basis, as a result of the termination of
the C8 channel in March 2025 and the end of the distribution of DAZN in
France, as well as the divestment of the DTH subscriber base in Hungary in
2025. These impacts were partially offset by an increase in wholesale in
Hungary and Czech Republic, as well as positive customer acquisition trends in
Austria, especially in OTT.

 

In Poland, Pay-TV revenue continued to grow, driven by OTT subscription
revenue growth and a continued increase in advertising and wholesale revenues.

 

In the Overseas Territories, revenues increased slightly due to the
consolidation of MC Vision in Mauritius, offsetting the slight decline in the
TV postpaid subscriber base.

 

Africa and Asia

Africa and Asia revenue increased by 242.6% to €889 million, due to the
inclusion of MultiChoice. Revenue decreased by 1.2% on a restated including
MultiChoice basis due to the decline in MultiChoice revenue and foreign
exchange effects.

 

MultiChoice Group revenue decreased, driven by lower non-subscription revenue,
mainly: higher subsidies on equipment to new subscribers, content sales,
commissions on insurance business, and some one-off items recorded in Q1 2025.
Advertising revenue benefited from the SA20 cricket and AFCON tournaments.
Subscription revenue was almost flat on a constant currency basis.

 

In French-speaking Africa, performance was strong, with improvements in
subscriber acquisition, positive price effects and increased advertising
revenues thanks to AFCON, partially offset by a negative foreign exchange
effect.

 

GVA's upward momentum continued, with revenue growing year on year, driven by
subscriber growth across all markets.

 

Asia revenue increased, with growth in Myanmar driven by an increase in ARPU
and growing subscriber base.

 

Content Production, Distribution and Other

Content Production, Distribution and Other revenue increased by 9.0%. The
growth reflects the increased scale of STUDIOCANAL following the acquisition
of Lucky Red and STUDIOCANAL's strong box office performances, delivering two
of the top three new releases in France, with Guru and Children of the
Resistance. In Germany, Extrawurst was the market's highest grossing new
release, and franchise title Woodwalkers 2 exceeded expectations, while The
Housemaid was a breakout success at the box office in both Australia and New
Zealand.

 

Revenue generated by STUDIOCANAL's content library increased due to successful
domestic and international sales. Paddington the Musical continues to gain
recognition, leading both the WhatsOnStage awards and Olivier Awards with nine
and seven wins respectively.

 

Dailymotion continued its growth trajectory with an increase in advertising
revenue, especially in the US, and a strong performance of its services
offering following the acquisition of Mojo and building on the growth of
Dailymotion Pro.

 

DELIVERY OF MEDIUM-TERM STRATEGIC PRIORITIES

 

Turning around MultiChoice and capturing African growth opportunities

The integration of MultiChoice Group is progressing well, with the top
management team appointed and in place. The turnaround plan is underway, the
boost plan has been launched, commercial operations are being strengthened and
the recruitment of new sales personnel to expand distribution has begun. In
South Africa, MultiChoice (Pty) Ltd has suspended the historic commercial
policy of annual price increases, and the level of subsidies offered to new
customers has been increased.

 

Increasing profitability in Europe

In France, the Group continues to pursue its disciplined cost approach and is
benefitting from the effects of the cost optimisation measures implemented
last year. In Poland, continued growth in OTT, improvements in content costs,
channel fees and operational expenditure, driven by changes to customer care
and back-office operations, resulted in margin expansion.

 

Further strengthening our leading entertainment platform across Europe and
Africa

The Group announced a three-year strategic partnership with Sky for the
co-commissioning of premium, English language scripted content. The Group
acquired a majority stake (51%) stake in Lucky Red, one of Italy's leading
production and distribution companies, with a content library containing over
500 titles.

 

Pursuing a disciplined approach to cost management and capital allocation

The Group is on track to achieve its accelerated synergies target and deliver
€250m Adjusted EBIT savings in 2026. The MultiChoice Group Voluntary
Severance Plan is now being implemented. The retirement of the OTT platform
Showmax will complete on 30 April 2026. Showmax content is now available on
MultiChoice's DStv platform and the migration of Showmax subscribers is being
supported by dedicated commercial offers from MultiChoice (Pty) Ltd.  The
Irdeto restructuring is on track and entering the formal consultation phase
required ahead of implementation.

 

2026 GUIDANCE FOR THE CANAL+ GROUP

While we are cognisant of the macroeconomic and geopolitical backdrop,
we reiterate our guidance for the CANAL+ Group and our outlook for CANAL+
historical basis and MultiChoice, as outlined in our FY Results on 11 March
2026.

CANAL+ Group Full Year 2026 guidance:

·    Revenue: Flat

·    Adjusted EBIT: €735m

·    CFFO before VAT settlement & restructuring: above €600m

·    FCF before VAT settlement & restructuring: above €250m

 

JSE LISTING CONFIRMED FOR 3 JUNE 2026

The Group's secondary inward listing on the Johannesburg Stock Exchange (JSE)
(subject to obtaining formal approval from the JSE, which is expected to be
imminent) will provide South African investors with the opportunity to invest
in a global media and entertainment company. The JSE listing will enhance the
long-term liquidity and tradability of CANAL+ shares. The listing will also
fulfil the commitment made to South African Competition Authorities to pursue
a secondary inward listing on the JSE.

 

CORPORATE CALENDAR

Annual General Meeting: 29 May 2026

 

CANAL+ CONTACTS

For enquiries please contact:

 Investor Relations        h2Radnor           ir@canal-plus.com
 Financial Communications  Andrew Swailes     andrew.swailes@canal-plus.com
 Corporate Communications  Olivia Abehassera  olivia.abehassera@canal-plus.com

 

ABOUT CANAL+

CANAL+ is a global media and entertainment company with leading positions in
Europe and Africa. Over 40 million subscribers enjoy the CANAL+ entertainment
platform, which brings together the best local and global films, live sport,
TV series and much more. CANAL+ operates in over 70 countries and has
approximately 15,000 employees.

 

CANAL+ operates across the entire audio-visual value chain, including
production, broadcast, distribution and aggregation. In addition to its Pay-TV
and streaming operations in Europe, Africa and Asia, the combined group
includes: MultiChoice Group, Africa's leading entertainment platform;
STUDIOCANAL, Europe's leading film and television studio, with worldwide
production and distribution capabilities; Dailymotion, a 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; telecommunication services, through GVA in Africa and CANAL+
Telecom in the French overseas jurisdictions and territories.

 

CANAL+ also has minority stakes in Viaplay (Scandinavia's leading
entertainment provider), Viu (a leading OTT provider in Southeast Asia), and
UGC, a leading French cinema group.

canalplusgroup.com/en
(https://urldefense.com/v3/__https:/www.canalplusgroup.com/en__;!!BbMIO5B-jb9uIA!BcVIEguJlNYpGE4cfwoj6eRQ1SyIEqLWY8Kc34UXiFGNVcUDu8gwfUCG7vq9IyScCvPRVCn4gxyCB14Ey3PCBRAL5cSKv1GNFVY23owM1g$)

 

 

Important Information

The trading update is based upon the unaudited management accounts of the
Group and has been prepared solely to provide additional information on
trading to the shareholders of the Company. Accordingly, the Company makes no
representation or warranty as to the appropriateness, accuracy, completeness
or reliability of the information in this announcement and accordingly neither
the Company nor any of its directors accepts any liability to any person in
respect of this announcement or any information contained within it.

CAUTIONARY STATEMENT REGARDING 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. Certain of
these factors are discussed in more detail elsewhere in this announcement and
in reports and presentations published by the Company, as available on the
investor section of the website: www.canalplusgroup.com
(https://www.canalplusgroup.com/en/group) .

Forward-looking statements speak only as of the date they are made and, except
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.

 

 

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