Canal+ earmarks R2bn to kick-start MultiChoice’s turnaround

Canal+ is looking to invest almost R2bn to kick-start MultiChoice’s turnaround after years of decline that recently saw its online video streaming service shut down.

While DStv’s three decades are largely celebrated as a success, the group has been fighting headwinds that have battered the business in recent years.

These range from a cost-of-living crisis that has seen households cut their entertainment budgets, to those same inflationary pressures pushing up operating costs across its 50 markets, and shifting consumer preferences for entertainment towards alternatives such as gaming and social media.

The company went from having more than 23-million subscribers in March 2023 to 19.3-million in less than two years. That number is now almost a third lower at 14-million.

“To restart subscriber growth, Canal+ will launch a growth boost plan by investing about €100m (R1.9bn),” the French broadcaster said on Thursday as it reported full-year earnings to end-December 2025.

Since taking control of the DStv operator, Canal+ has begun the work of assessing how the combination of the French broadcaster’s Africa unit and MultiChoice will operate in the future

Canal+, which took control of the DStv operator in September, warned MultiChoice faces a €140m hit to its earnings before interest and tax (ebit) in 2026 “from inertia of subscriber base driving decrease in revenue, and from cost inflation”.

Even then, the group is guiding adjusted ebit of about €170m for MultiChoice in 2026, which is €11m higher than what it reported for 2025.

Since taking control of the DStv operator, Canal+ has begun the work of assessing how the combination of the French broadcaster’s Africa unit and MultiChoice will operate in the future.

A major development resulting from this process came last week when MultiChoice announced it will soon shut down its Showmax on-demand video streaming service as part of the group’s effort to rein in costs and cut loss-making units, having spent more than R5bn on the project.

According to Canal+, recent initiatives, like discontinuing Showmax, saw “delivery of cost synergies accelerated” and is expected to reach €250m in 2026 for MultiChoice, up from €150m announced in January.

Cash flow from operations is expected to reach €100m, with free cash flow before restructuring costs at a negative €50m.

Before the takeover and in response to its bleeding, MultiChoice had embarked on a cost-cutting programme of its own.

We completed the acquisition of MultiChoice and we have identified run-rate cost savings from synergies of €400m from 2030 onwards

—  Maxime Saada, group CEO

Canal+ Africa CEO David Mignot told Business Day last year MultiChoice had decreased its investment in customer acquisition over the past three years more than necessary. As such, this is the one area that the French group is willing to spend on.

In Mignot’s view, MultiChoice has to “invest in commercials, sales, distribution and marketing”.

Overall, Canal+ reported group revenue grew 0.9% on an organic basis, driven by sustained growth in Europe and Africa & Asia “due to favourable subscriber base dynamics”, to €6.95bn for the period.

Group CEO Maxime Saada said 2025 “was a successful and transformational year for Canal+.

“We began the year facing significant challenges. The MultiChoice acquisition had yet to be completed; we had major unresolved legacy tax issues in France, profitability concerns in Europe and significant sports tenders still outstanding. And 2025 was also our first year as an independent listed business.

“We ended the year having successfully put those challenges behind us. We completed the acquisition of MultiChoice and we have identified run-rate cost savings from synergies of €400m from 2030 onwards.”