Increase in Cash Flow at Canal+ Bolsters Stock Prices
Canal+, the French pay-TV company listed in London, has released its financial results for the first half of 2025. The company reported a 3.3% decline in revenue to €3.09 billion, primarily due to losing certain broadcasting contracts and the lapse of a UEFA Championship sublicensing agreement. Despite the revenue dip, Canal+ achieved a significant increase in free cash flow, which soared to €370 million from €128 million a year earlier, driven by improved cash management and normalized tax payments in France.
The decrease in adjusted earnings before interest and taxes (EBITA) was 21.6% to €246 million for the half-year, reflecting the revenue contraction and one-off gains in the prior period. However, Canal+ remains on track to meet its full-year EBITA target of approximately €515 million. Wholesale subscribers decreased by 353,000 globally, but direct-to-consumer subscribers slightly increased by 0.2% despite losing key contracts in France.
Strategically, Canal+ secured regulatory approval for its $2 billion acquisition of South African broadcaster MultiChoice, expected to close by October 8, 2025. This deal expands Canal+’s market presence into 24 French-speaking African countries through a partnership with Netflix, marking a significant move beyond Europe and positioning content aggregation as a competitive advantage in emerging markets.
| Metric | Q2 / H1 2025 Figures | Change / Notes | |--------------------------|-------------------------------|-------------------------------------------------| | Revenue | €3.09 billion | Down 3.3% year-over-year | | Adjusted EBITA | €246 million | Down 21.6% due to lost rights and one-offs | | Free Cash Flow | €370 million | Up from €128 million (strong cash flow growth) | | Wholesale Subscribers | Net decrease of 353,000 | Global decrease | | Direct-to-Consumer Subs | Slight rise of 0.2% | Growth despite contract losses | | Market Expansion | Acquisition of MultiChoice | $2 billion deal, expands into African markets |
CEO Maxime Saada highlighted the strategic importance of "super-aggregation beyond Europe" via the MultiChoice and Netflix partnership, while noting challenges in the Vietnamese market.
Bank of America has stated that the numbers for Canal+ are "soft at first glance but solid on an underlying basis", citing improved core pay-TV activities and unexpectedly strong free cash flow. The non-renewal of Ligue 1 and Disney deals in France contributed to the growth in the direct-to-consumer customer base.
Canal+ has also received approval for its $2-billion takeover of South African broadcaster MultiChoice earlier this month. The company's strategy of combining in-house content with sports and streamers on its platform is a unique strength, according to Saada.
At the time of writing, Canal+ reported a 2% increase in its shares at 0920 GMT. The takeover of MultiChoice by Canal+ is on track to close by October 8.
In light of the strategic approach, Canal+ intends to leverage technology by partnering with Netflix as part of its $2 billion acquisition of South African broadcaster MultiChoice, bolstering its business ventures into African markets and establishing content aggregation as a competitive edge in emerging economies. Despite a 3.3% decline in revenue compared to the previous year, Canal+ reported a significant increase in free cash flow, underscoring the company's strong financial performance in managing its resources effectively.
