International pay-TV broadcaster, Canal Plus, has reported a 2.5% drop in revenue for the first quarter of 2025. The company's financial results reveal a shift in focus towards profitability and cash generation, leading to the termination of various unprofitable contracts.
Canal Plus' revenue for Q1 stood at €1.54 billion ($1.75 billion), down from €1.58 billion during the same period in 2024. Despite this drop on a reported basis, the broadcaster managed to increase its organic group revenue by 1.5%. The company attributes this decline to strategic decisions aimed at enhancing profitability and cash generation rather than maintaining unprofitable contracts. In terms of regional performance, European revenues were up by 0.8% organically but down by 4.5% on a reported basis due to contract terminations and other factors.
Revenues from Africa and Asia dropped by 2.3%, partly attributed to the absence of popular events like the biennial Africa Cup of Nations national team soccer tournament that boosted income significantly in Q1 2024. European revenues amounted to €1.14 billion, down year-on-year from €1.2 billion. Revenues across Africa and Asia were €267 million, compared with €274 million during the prior year.
Market-specific performance
In France - Canal Plus' home market - direct-to-consumer revenues saw growth while wholesale and sub-licensing income declined due to discontinued contracts and activities. On a brighter note, Poland recorded an increase in revenues which contributed positively towards offsetting some losses experienced elsewhere.
For content production and distribution sector specifically, revenue came out strong at €158 million - an impressive rise of 8.2% from Q1 last year. Maxime Saada, Canal Plus' chief executive, highlighted that 2024 was a pivotal year for the company as it achieved several key strategic milestones. He emphasized the company's continued momentum in Q1 2025 towards becoming a global media and entertainment leader.
Saada also noted that the downturn in Africa and Asia merely reflected the exceptional impact of popular events like the African Cup of Nations on revenues during the comparable period last year.
Multichoice acquisition
Canal Plus is currently working on acquiring sub-Saharan African broadcast group Multichoice. The deadline for this agreement has been extended to October 8, giving regulators more time to clear it.
If successful, Saada believes this deal will significantly strengthen Canal Plus' operations in Africa and unlock huge untapped potential in this booming market - generating significant synergies across Africa and beyond.
In addition to its financial results and acquisition plans, Canal Plus also announced an extension of its strategic partnership with Samsung Electronics in mid-February as part of its Q1 activities. This move further demonstrates their commitment to expanding their global footprint while maintaining strong financial discipline.
