CANAL+ is now a much bigger company because it owns MultiChoice. The awkward part is that the business it bought is still getting smaller where it matters most.

What happened? MultiChoice revenue fell 3% on a like-for-like basis in the nine months to September, dragged down by lower subscription income in South Africa. Reported revenue still rose 0.4% to €1.81 billion ($2.03 billion), but that increase came largely from favourable currency movements rather than stronger underlying performance. 

There was some improvement. The decline slowed to 2% in the third quarter from 3.4% in the first half. CANAL+ cautioned that easier comparisons with last year’s sports calendar also helped, so it is too early to credit the turnaround.

Explain like I’m new here: CANAL+ completed its takeover of MultiChoice because it wanted scale across Africa, but the two businesses entered the deal from very different positions. CANAL+’s operations outside MultiChoice are still growing strongly in French-speaking Africa. MultiChoice, by contrast, is dealing with falling subscription revenue in its biggest market. 

CANAL+ has started responding. In September, DStv launched several unbundled packages in South Africa, after shutting down Showmax in April. The group is also spending on sports rights, including UEFA club competitions and the 2027 Africa Cup of Nations. 

Between the lines: CANAL+’s strongest African business and its newest acquisition are moving in opposite directions. Revenue from its Africa and Asia operations, excluding MultiChoice, grew 10.2% like-for-like, helped by French-speaking Africa. MultiChoice declined.

CANAL+ is targeting €250 million ($281 million) in synergies, but cutting duplicated costs can only do so much. If fewer South Africans pay for DStv, the group eventually has to fix demand, not just expenses.

What to watch: Subscriber numbers. CANAL+ did not disclose them this quarter. Sports rights, unbundled packages, and more content sound promising, but the proof of a turnaround will be whether DStv can keep more customers and stabilise subscription revenue.