According to industry reports, media giant Groupe Canal+, which recently acquired MultiChoice, has seen its share price decline by nearly 29% since announcing its first full-year results following the acquisition of the struggling South African pay-TV operator.
Canal+ announced plans to invest an additional US$114 million to revitalise MultiChoice and support its return to sustainable growth. This announcement follows Canal+’s substantial investment of around US$1.7 billion in a deal that valued MultiChoice at over US$3.2 billion, excluding prior expenditures to acquire MultiChoice stock.
Despite this financial commitment, the company’s intentions to reduce operating costs, including workforce reductions outside South Africa and the closure of the Showmax streaming service, failed to reassure investors.
The financial results indicated that MultiChoice continued to struggle, with revenues shrinking by US$160 million and subscriber losses of 500,000. This downturn follows a cumulative loss of US$418 million over the previous two financial years ending on March 31, 2025.
After these developments, Canal+ saw its shares fall by 17% on the day of the results announcement, marking its worst performance since listing in London around 15 months prior. The share price has continued to decline, trading at around £2.11 on March 16, 2026, down 28.7% from £2.96 on March 10, 2026.
Analysts from AlphaValue expressed scepticism, noting that the initial phase of MultiChoice’s restructuring and the details of its African development agenda may not be enough to excite investors.
Canal+ has outlined a multifaceted plan to restore MultiChoice’s profitability, focusing on four strategic pillars to boost subscriber growth and strengthen the business.
- Content Development: Canal+ aims to deliver the most engaging content in Africa by enhancing in-house channels, leveraging joint products, and forming global partnerships. The strategy involves producing a wealth of local African content and securing vital sports rights.
- Commercial Simplification: The company will work to clarify its pricing strategies, streamline branding efforts, and improve marketing efficacy, aiming to enhance MultiChoice’s commercial appeal.
- Subscriber Growth Initiatives: Plans include lowering entry costs with subsidies on hardware, expanding the distribution network, and hiring over 1,000 new sales representatives to boost subscriber numbers.
- Operational Efficiency: The strategy incorporates a voluntary severance plan for certain support roles within MultiChoice and a restructuring effort at Irdeto, its technology and cybersecurity subsidiary. While often synonymous with job cuts, these measures comply with commitments made to the Competition Tribunal during the acquisition phase, seemingly protecting South African employees for the next few years.
In a significant shift, Canal+ also announced the discontinuation of Showmax, the on-demand video streaming service launched in 2015 to compete with Netflix. Once a centrepiece of MultiChoice’s growth strategy, Canal+ has now labelled it as an expensive failure and is initiating discussions with its partners, including NBCUniversal, to cease operations.
This comprehensive approach reflects Canal+’s dedication to addressing the challenges facing MultiChoice and rejuvenating its path towards growth and profitability.
