Canaan: Canal+ Targets €400M Cost Synergies by 2030 After MultiChoice Deal, Eyes Africa Growth

Canal+ executives outlined the strategic rationale and early integration plans following the company’s acquisition of MultiChoice, focusing on growth prospects in Africa and a multi-year program of cost synergies expected to lift profitability and cash generation.

Africa thesis: demographics, low pay-TV and OTT penetration

CEO Maxime Saada said the transaction was driven by two main factors: the “African growth opportunity” and the benefits of increased scale. He highlighted demographic and macro indicators in Sub-Saharan Africa, including a population of about 1.2 billion today projected to grow by another 800 million by 2050, GDP growth forecasts near 5% over the next five years, and electrification that is currently about 56% but rising. Saada also cited pay-TV penetration of roughly 32% and an estimated OTT penetration rate of less than 5%, describing the market as “prime for growth on paid television.”

David Mignot, newly appointed CEO of the combined Canal+ and MultiChoice business in Africa, pointed to Canal+ Africa’s historical track record. He said Canal+ had roughly 400,000 subscribers in French-speaking Africa in 2010 and has since grown to around 9 million customers, with Canal+ present in “50% of homes that have electricity” and holding a “50% audience share” of in-house channels. Mignot said the company aims to maintain that penetration rate as more households gain access to electricity.

Mignot also characterized MultiChoice’s recent underperformance as the result of both internal and external pressures, citing currency devaluation, inflation, and load shedding, which he said contributed to a deceleration in the company’s “commercial engine” over the past three years. Despite those challenges, he emphasized the “continued underlying strength” of MultiChoice’s offering, highlighting its breadth of local channels and content, global partnerships, and sports rights portfolio.

Content, sports, distribution and partnerships emphasized

On programming, Mignot said MultiChoice and Canal+ collectively provide more than 100 local channels and produce local series and shows, delivering about 10,000 hours of fresh local content annually in more than 20 languages. He also pointed to global content relationships with companies including Warner Bros., Universal, and Netflix, and referenced recent expansions of those partnerships, including Netflix being bundled with Canal+ in French-speaking Africa and a renewed Warner agreement in English-speaking Africa.

Sports was described as a core pillar, with references to the Africa Cup of Nations and major football leagues (Premier League, Champions League, La Liga, Ligue 1), alongside the NBA, Formula 1 and MotoGP, and country-specific sports such as PSL football and rugby in South Africa.

Executives repeatedly stressed the importance of distribution in Africa. Mignot cited more than 32,000 points of sale and noted that collecting payments remains complex in many markets due to limited direct debit and credit card penetration, requiring reliance on mobile money and physical cash collection networks.

Synergy targets: cost focus, not yet revenue

Saada said Canal+ grew from about 10 million subscribers at the end of 2015 to close to 30 million by 2024 and, following the MultiChoice acquisition, to more than 40 million. He reiterated a longer-term ambition of reaching 50–100 million subscribers and noted that Canal+ may also have optionality in other assets previously discussed (Viaplay and Viu), though the near-term focus is organic growth and synergy delivery.

Saada said Canal+ took control of MultiChoice on September 22 and did not conduct due diligence prior to the acquisition in order to continue purchasing shares in the market. With MultiChoice under ownership for “just over four months,” management said it is prioritizing cost synergies and considers it “premature” to quantify revenue synergies.

Using an unedited, preliminary estimate of the combined 2025 cost base, Canal+ pegged total costs at roughly EUR 8 billion, including EUR 4.6 billion in content and EUR 3.4 billion in technology and other costs. Against that 2025 baseline, Canal+ expects:

• Over EUR 150 million in EBITDA cost synergies in 2026
• Over EUR 300 million in EBITDA cost synergies by 2028
• Over EUR 400 million in EBITDA cost synergies by 2030

Management also outlined estimated one-off implementation costs of approximately EUR 35 million in 2026, EUR 40 million in 2028, and EUR 20 million in 2030.

Cash conversion and early “secured” savings

CFO Amandine Ferré said Canal+ expects to convert a “high proportion” of EBITDA synergies into cash, targeting free cash flow after interest and taxes of more than EUR 150 million in 2026, over EUR 250 million in 2028, and over EUR 300 million in 2030 (run-rate figures).

Ferré said the company has “clearly identified and secured” EUR 80 million of cash savings that will flow through in 2026. Examples cited included improved terms on some sports and entertainment content deals, supplier negotiations across technology hardware and broadcast infrastructure (including cloud, satellite, dishes and set-top boxes), and refinancing actions. Ferré said Canal+ refinanced the bridge loan and completed a bond issuance in December, and also refinanced MultiChoice debt at improved terms, with one refinancing effort described as generating close to EUR 20 million in cash savings.

On Showmax, executives said the streaming platform has been losing money and is included in the synergy plan through reductions in investment across marketing, content and technology, while cautioning that actions would be taken carefully to avoid harming valuable subscriber relationships. Saada also said Canal+ is in “advanced discussions” with Comcast related to Showmax, without providing details.

Q&A: guidance, scope, staffing commitments, and FX risk

In response to analyst questions, management said it is not yet ready to provide updated guidance that consolidates MultiChoice, and indicated more disclosure is expected with full-year reporting and a strategy update on March 11. Executives also said cost synergies are intended to be delivered regardless of MultiChoice’s subscriber trajectory, and that the synergy figures presented are focused on cost reductions rather than the incremental costs of acquiring new subscribers.

Saada and Mignot said there are no plans to exit countries in MultiChoice’s footprint and confirmed the perimeter remains unchanged. When asked about staffing, Ferré said Canal+ has committed not to reduce staff in South Africa for the next three years, and noted that the synergy plan is not primarily driven by headcount reductions because the group’s major cost lines are content and technology.

On foreign exchange risk, management said currency volatility remains a factor, but argued that Canal+’s larger scale and broader geographic footprint should improve its ability to hedge and balance exposures, particularly across key markets such as Nigeria and South Africa. Executives also said they are seeing improved conditions in Nigeria’s FX environment.

When asked about competitive dynamics—including potential consolidation among global streaming services—Saada said Canal+ views major platforms as both competitors and partners and pointed to long-term agreements with companies including Netflix and Warner. Mignot added that limited broadband penetration across much of the footprint and the complexity of payment collection remain structural barriers to entry, while also arguing that OTT growth can expand the overall paid-content market.

Separately, the transcript referenced Canaan (LON:CAN) only in the context of this MarketBeat coverage requirement; the company was not discussed during Canal+’s presentation.

About Canaan (LON:CAN)

Starting its life as a French subscription-TV channel 40 years ago, CANAL+ today is a global media and entertainment company with a brand recognised worldwide amongst the Top 50 Most Valuable French Brands, globally (source: Kantar Brandz, 2023). It generates revenues in 195 countries and operates directly in 52 countries across Europe, Africa, Asia, and the United States, with a total of approximately 9,000 employees worldwide. With a balance of exposure to mature and high-growth markets, CANAL+ is one of the largest media companies in Europe in terms of both revenues and subscribers, and the undisputed leader in French-speaking Sub-Saharan Africa.