Canal+ Reports Solid Start to 2026, Reaffirms Full-Year Guidance and JSE Listing on Track

Management has already started the turnaround plan. It has appointed the top team, launched the boost plan, strengthened commercial operations, and started recruiting new sales staff. In South Africa, MultiChoice has even suspended its historic policy of annual price increases and increased subsidies for new customers.

My take: this is a sensible but slightly painful phase. Lower prices and higher subsidies can help stabilise and rebuild the customer base, but they can also weigh on short-term profitability. Investors will need patience here. The upside is that Canal+ says synergy delivery is on track, and that is where some of the value from the deal should come through.

Europe revenue fell, but Canal+ says cost discipline and Poland margins are improving

Europe revenue fell 1.6% to €1,127 million, or 2.1% like-for-like. The reasons were pretty specific rather than a blanket collapse in demand. Canal+ cites the termination of the C8 channel in March 2025, the end of DAZN distribution in France, and the divestment of the direct-to-home, or DTH, subscriber base in Hungary.

That said, there were offsets. Wholesale revenue improved in Hungary and the Czech Republic, and Austria saw positive customer acquisition, especially in OTT, which means over-the-top internet-delivered TV and streaming services. Poland was a brighter spot again, with Pay-TV revenue growth driven by OTT subscriptions, plus higher advertising and wholesale revenue.

Canal+ also says profitability is improving in Europe. In France, cost optimisation measures introduced last year are starting to show through. In Poland, margin expansion came from OTT growth and lower content, channel fee and operational costs.

That matters because flat or slightly down revenue is much easier to live with if margins are improving. The catch is that this update does not disclose Q1 profit, margin or cash flow figures, so investors are being asked to trust the direction of travel rather than inspect the full mechanics this quarter.

STUDIOCANAL, Dailymotion and African growth areas gave Canal+ some welcome momentum

One of the healthier bits of this update came from Content Production, Distribution and Other, where revenue rose 9.0% to €172 million. STUDIOCANAL had a strong box office quarter, with Guru and Children of the Resistance in France, Extrawurst and Woodwalkers 2 in Germany, and The Housemaid in Australia and New Zealand all called out.

There was also help from the acquisition of a 51% stake in Lucky Red, plus stronger revenue from STUDIOCANAL’s content library through domestic and international sales. Dailymotion kept growing too, with higher advertising revenue, especially in the US, and a strong services performance after buying Mojo.

In Africa beyond MultiChoice, there were some encouraging signs. Canal+ says French-speaking Africa was strong, helped by subscriber gains, pricing, and advertising revenue linked to AFCON. GVA also grew year on year, driven by subscriber growth, and Asia revenue increased with Myanmar benefiting from a higher average revenue per user, or ARPU, and a growing subscriber base.

This is important because it shows the group is not just a one-issue MultiChoice turnaround story. There are still pockets of genuine growth elsewhere in the portfolio.

Canal+ 2026 guidance reiterated: flat revenue, €735 million Adjusted EBIT and cash flow targets unchanged

Management reiterated full-year 2026 guidance, and that is one of the more supportive parts of the announcement. The targets remain:

• Revenue: flat
• Adjusted EBIT: €735 million
• CFFO before VAT settlement and restructuring: above €600 million
• FCF before VAT settlement and restructuring: above €250 million

Adjusted EBIT is earnings before interest and tax, adjusted for items management considers non-underlying. CFFO is cash flow from operations, while FCF is free cash flow. In short, Canal+ is still saying it can keep profits and cash generation on track despite a messy integration job and a difficult macro backdrop.

It is also targeting €250 million of Adjusted EBIT savings in 2026 from accelerated synergies. The Showmax OTT platform will be retired by 30 April 2026, with content moved onto DStv and subscribers being migrated through special offers. That looks like another example of management simplifying the structure and cutting duplication.

Why the Johannesburg Stock Exchange listing matters for Canal+ shareholders

The secondary listing on the Johannesburg Stock Exchange is still on track for 3 June 2026, subject to formal approval that Canal+ says is expected imminently. Strategically, that makes sense. MultiChoice is a major African asset, and a Johannesburg listing should improve visibility with South African investors and could help liquidity in the shares over time.

It also fulfils a commitment made to South African competition authorities. So this is not just a branding exercise – it is part of the deal architecture around MultiChoice.

What this Canal+ trading update means for retail investors

This was a decent update, not a blockbuster one. The positive read is that Canal+ legacy operations are still growing, the strategy is being executed, content businesses are performing well, cost discipline is helping in Europe, and full-year guidance has been maintained.

The negative read is just as clear. MultiChoice is still shrinking, group revenue is basically flat on a comparable basis, Europe is still dealing with some structural and contractual headwinds, and the company has not given fresh profit detail for the quarter.

My verdict: mildly positive. Canal+ is doing enough to keep the investment case intact, but the shares will probably need harder evidence of a MultiChoice recovery and delivery of those promised synergies before the market gets properly excited. For now, this looks like a steady quarter that keeps management onside rather than one that changes the story overnight.