CANAL+ Reports Mixed 2024 Results with Revenue Growth but Widening Losses
Why we think this is bad
While CANAL+ showed some positive trends in 2024, including a 3.6% revenue growth and a slight improvement in EBITA margin, there are significant concerns that overshadow these gains. The company's bottom line deteriorated, with losses attributable to equity holders more than doubling from €61 million in 2023 to €147 million in 2024. Cash flow from operations declined substantially from €315 million to €218 million, indicating potential operational challenges. Despite subscriber growth, particularly in the direct-to-consumer segment, the company faces headwinds including cost inflation, a competitive landscape, and the impact of contract terminations. The outlook suggests only moderate revenue growth, which will be offset by the cessation of certain broadcasting activities. These factors, combined with execution risks related to the ongoing MultiChoice acquisition, paint a challenging picture for CANAL+ in the near term.
Key Points
- Revenue increased 3.6% to €6,449 million in 2024
- EBITA before exceptional items grew 5.4% to €503 million
- Loss attributable to equity holders widened to €147 million from €61 million in 2023
- Total subscriber base grew 0.4% to 26.9 million, with 1.9% growth in direct-to-consumer subscribers
- Cash Flow from Operations decreased to €218 million from €315 million
- Net debt significantly reduced to €355 million due to recapitalization
- Company faces headwinds including cost inflation and a competitive landscape
- Outlook suggests moderate revenue growth, offset by termination of certain broadcasting activities
- Ongoing acquisition of MultiChoice Group presents opportunities and execution risks
- Proposed dividend of €0.02 per share for 2024
Summary
CANAL+ delivered mixed results for 2024, with revenue growing 3.6% to €6,449 million and EBITA before exceptional items increasing 5.4% to €503 million. However, the company faced significant challenges, including a widening loss attributable to equity holders of €147 million, up from €61 million in 2023. The subscriber base saw modest growth of 0.4% to 26.9 million, with stronger performance in direct-to-consumer subscriptions (+1.9%). Despite these gains, Cash Flow from Operations declined to €218 million from €315 million in the previous year. The company's outlook remains cautious, expecting only moderate revenue growth in the medium term, which will be offset by the termination of certain broadcasting activities. The ongoing acquisition of MultiChoice Group presents both opportunities and execution risks. While net debt significantly reduced to €355 million due to recapitalization, the overall financial picture suggests CANAL+ is navigating a challenging media landscape with pressures on profitability and cash flow.