CANAL+ SA (LSE: CAN), the global media and entertainment company operating in over 70 countries, reported unaudited consolidated group revenue of €6,412 million for the nine months ended 30 September 2026, a 37.5% increase year-on-year, primarily driven by the acquisition of MultiChoice Group. The company confirmed it remains well on track to deliver its full-year 2026 guidance, including Adjusted EBIT of €735 million and free cash flow above €250 million before VAT settlement and restructuring. Investors will be watching progress on the MultiChoice turnaround, the proposed French VAT change, and the ongoing rollout of new subscriber offerings across Africa.

Key Points

  • CANAL+ SA (LSE: CAN / JSE: CNP), incorporated in France, is a global media and entertainment company with over 40 million subscribers
  • Group revenue rose 37.5% to €6,412 million for the nine months ended 30 September 2026, largely reflecting the MultiChoice acquisition
  • Full-year 2026 guidance maintained: revenue flat; Adjusted EBIT €735m; CFFO above €600m; FCF above €250m; synergies target of €250m Adjusted EBIT and €220m FCF
  • Investors should monitor resolution of the proposed French VAT rate increase and the MultiChoice subscriber recovery trajectory

MultiChoice Acquisition Drives Group Revenue to €6,412 Million Across Nine Months

Group revenue for the nine months ended 30 September 2026 reached €6,412 million, up 37.5% on a restated basis year-on-year. On a like-for-like basis including nine months of MultiChoice contribution, revenue was broadly flat at -0.3%. Revenue excluding MultiChoice grew 1.3% to €4,646 million, supported by strong momentum in French-speaking Africa and the Content Production and Distribution segment. Africa and Asia revenue more than tripled to €2,604 million, while Europe revenue declined 1.4% to €3,363 million, partly reflecting the termination of the C8 channel and the end of DAZN distribution in France.

MultiChoice Turnaround Progress and New South Africa Subscriber Proposition

The announcement states that MultiChoice Group revenue increased 0.4% on a restated basis for the nine-month period, benefitting from a material positive currency effect, while declining 3.0% on a like-for-like basis due to lower subscription revenue in South Africa. However, the like-for-like revenue decline moderated to 2.0% year-on-year in Q3, compared with 3.4% in the first half. In September, a new simplified value proposition was launched in South Africa providing subscribers with more content and greater choice at the same price, with a broader rollout planned across English- and Portuguese-speaking Africa in the months ahead.

STUDIOCANAL Box Office Strength and UEFA Rights Secured Across 40-Plus African Countries

Content Production, Distribution and Other revenue grew 9.3% to €530 million, driven by STUDIOCANAL's strong box-office performances and international sales, as well as the acquisition of Lucky Red in February 2026. Films including Pressure, Les Misérables, and the third Shaun the Sheep release contributed to this performance. Separately, CANAL+ secured exclusive rights to all UEFA men's club competitions across more than 40 African countries for 2027–2031, alongside rights for the 2027 Africa Cup of Nations, marking the group's first major pan-continental sports rights acquisition.

Proposed French VAT Increase Poses Risk to Mainland France and Overseas Revenue

As part of the French government's 2027 Budget, a proposal to remove the reduced VAT rate applicable to CANAL+'s activities in mainland France and Overseas has been tabled. The company states it is actively challenging the measure with support from cinema organisations and sports federations and leagues, and has made progress in opposing the proposal, though the outcome remains uncertain. Should the measure be adopted, CANAL+ intends to implement subscription price increases and significant cost reduction initiatives to offset the financial impact, though no specific figures relating to potential impact were disclosed in the announcement.