Warning over DStv-owner’s next move in South Africa
Ahead of Canal+’s upcoming listing on the JSE in June, market analysts warn that the broadcaster is facing significant challenges in turnaround and integration following its acquisition of MultiChoice.
In 2025, Canal+ completed its acquisition of MultiChoice, the owner of DStv, for over R50 billion.
As a result, MultiChoice was delisted from the Johannesburg Stock Exchange (JSE) and is now reported under Canal+’s financial results.
The French broadcaster noted that while MultiChoice experienced strong growth from 2010 to 2023, it has encountered significant challenges since then.
These challenges stem from various macroeconomic factors, including load shedding, the devaluation of the Naira, rising inflation, a difficult transition to over-the-top (OTT) services, and the costly failure of Showmax.
To address the situation, Canal+ stated that MultiChoice implemented short-term measures, including reducing subscriber-acquisition subsidies and increasing prices.
However, these actions negatively impacted its subscriber base, exacerbating existing profitability issues.
As a result, MultiChoice’s total subscriber base fell from 14.9 million in 2024 to 14.4 million in 2025.
This decline contributed to a 6% decrease in MultiChoice’s revenues, which dropped from €2,542 million (approximately R48 billion at current exchange rates) in 2024 to €2,400 million (R45 billion) in 2025.
Additionally, MultiChoice’s adjusted earnings before interest and taxes (EBIT) decreased by 14%, from €185 million (R3.5 billion) in 2024 to €159 million (R3 billion), prior to the positive effects of the purchase price allocation (PPA) resulting from the 2025 acquisition.
Canal+ said that cost-cutting initiatives helped to partially offset the adverse effects of the revenue decline.
Cash flow from operating activities increased from €138 million (R2.6 billion) in 2024 to €226 million (R4.28 billion) in 2025.
However, free cash flow (before exceptional items) improved from -€56 million (-R1.06 billion) in 2024 to -€42 million (-R796 million) in 2025, aided by various deferred payments.
Not a growth stock
Protea Capital Management CEO Jean Pierre Verster told Business Day TV that the global pay-TV industry is a mature market under pressure, and that Canal+ faces immediate challenges it needs to address following its acquisition of MultiChoice.
“Within MultiChoice, they have some issues that they need to sort out. So, no, I do not see it as a growth business, and I do not necessarily see it as a great opportunity just because it will be listed on the JSE,” said Verster.
“It will give people more choice, which is a positive, but it might be an opportunity to go long or go short when it finally lists on the JSE,” he said.
“I think the real benefit for Canal+ was buying MultiChoice, but more specifically, MultiChoice South Africa,” said MP9 Asset Management Chief Investment Officer Aheesh Singh.
Singh said that MultiChoice South Africa has maintained EBITDA margins of around 20% over the last five years, and it is a cash business.
He noted that, compared with Canal+, MultiChoice’s operating margins are significantly lower.
“They do have a lot of turnaround work to do regarding MultiChoice as a group in Africa and integrating all their systems,” said Singh.
Both analysts acknowledged that Canal+ might not be a growth stock and that there may be better investment opportunities available in the current market.
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