CANAL+ Reports Mixed 2024 Results with Increased Revenue but Widening Losses
Why we think this is bad
While CANAL+ reported a 3.6% increase in revenue to €6,449 million and a 5.4% growth in EBITA before exceptional items, the overall financial picture is concerning. The company's net loss widened to €147 million from €61 million in 2023, and adjusted net income swung to a loss of €33 million from a profit of €177 million. Despite a slight growth in the subscriber base and reduced net debt, the cash flow from operations decreased significantly. The outlook suggests challenges ahead, with organic growth expected to be offset by the end of certain contracts and broadcasting changes. Additionally, the company faces risks related to its ongoing acquisition of MultiChoice and challenging economic conditions in key markets. These factors, combined with the current trading indicators pointing to significant headwinds, overshadow the positive aspects of revenue growth and subscriber increases.
Key Points
- Revenue increased by 3.6% to €6,449 million
- EBITA before exceptional items grew by 5.4% to €503 million
- Net loss widened to €147 million from €61 million in 2023
- Adjusted net income swung to a loss of €33 million from a profit of €177 million
- Subscriber base grew by 0.4% to 26.9 million, with 1.9% growth in direct-to-consumer subscribers
- Net debt reduced to €355 million from €3,746 million
- Cash flow from operations decreased to €218 million from €315 million
- Ongoing acquisition of MultiChoice faces regulatory approvals and economic challenges in key African markets
- Outlook suggests organic revenue growth in 2025, offset by end of certain contracts and broadcasting changes
- Medium-term expectations include moderate revenue increase and improved EBITA margin
Summary
CANAL+ reported mixed results for 2024, with revenue increasing by 3.6% to €6,449 million and EBITA before exceptional items growing by 5.4% to €503 million. However, the company faced significant challenges, including a widened net loss of €147 million and a swing to an adjusted net loss of €33 million. The subscriber base grew slightly by 0.4% to 26.9 million, with a focus on more profitable direct-to-consumer subscribers. While net debt reduced significantly to €355 million, cash flow from operations decreased to €218 million. The company's outlook suggests organic growth in 2025, but this is expected to be offset by the end of certain contracts and broadcasting changes. CANAL+ faces risks related to its ongoing acquisition of MultiChoice and challenging economic conditions in some markets, particularly in Africa.