Canal+ (CAN) H1 2025 earnings summary

Executive summary

• Organic revenue grew 0.9% to €3,086M in H1 2025, with EBITA at €246M before exceptionals and strong cash flow generation, supporting upgraded full-year guidance despite reported revenue decline from contract terminations and channel closures.

• Strategic focus on profitable contracts, cost reductions, and tax resolution, including ending unprofitable deals and major contracts like Disney and Ligue 1, and launching a redundancy plan.

• Major operational changes include exiting DTT pay TV in France, closing C8, and renewing cinema agreements on better terms.

• Enhanced content value proposition through StudioCanal, strong box office and series performance, and new partnerships with streaming platforms like Netflix.

• Expansion of digital and distribution capabilities, including new app features, connected TV partnerships, and in-car and airline deals.

Financial highlights

• H1 2025 organic revenue up 0.9% year-over-year to €3,086M; reported revenue down 3.3% due to contract terminations and channel closures.

• EBITA at €246M (8.0% margin), with FY25 EBITA guidance confirmed at ~€515M.

• Cash flow from operations (CFFO) reached €416M, up 86% year-over-year; free cash flow at €370M, a record level.

• Net debt reduced to €24M at H1 close, providing significant financial flexibility.

• Dailymotion delivered double-digit revenue growth, nearing breakeven and contributing to margin improvement.

Outlook and guidance

• Full-year organic revenue growth expected to continue, though reported revenue will be offset by contract and channel closures.

• EBITA guidance for 2025 confirmed at €515M, with moderate margin growth expected in the medium term.

• Exceptional CFFO above €500M expected for 2025, with free cash flow guidance above €370M.

• 2026 CFFO and free cash flow expected to decline from 2025's exceptional levels but remain above historical averages, with MultiChoice acquisition to significantly impact results.

• Return to growth in African Pay TV expected in H2 2025 due to strong content slate and new offers.