Canal+ targets further African growth as it seeks savings from Multichoice deal

France’s Canal+ has claimed its acquisition of South African media giant Multichoice Group will unlock millions of dollars in cost savings as it targets growth across the African continent.

Maxime Saada

The pay TV operator’s bosses said the deal was “transformational” and they are confident synergies will generate over €400m (US$478m) in annual savings.

Canal+ concluded its US$3bn takeover of Multichoice in October, with the French company owning just over 94% of all Multichoice shares.

It is now targeting run-rate cost synergies of more than €400m in earnings before interest, tax and amortisation and upwards of €300m in free cash flow from 2030.

The group claims it is now well-positioned to capitalise on the potential of the African market after combining both entities’ management teams under the leadership of David Mignot, CEO of Canal+ Africa.

The acquisition of Multichoice has seen Canal+ expand its subscriber base to more than 40 million and it aims to reach between 50 and 100 million.

Maxime Saada, CEO of Canal+, said: “With the acquisition of MultiChoice, Canal+ has created a unique global entertainment platform anchored in Europe and Africa. We are well positioned to benefit from growth in Africa and capitalise on the significant opportunities ahead.

“We have created an entertainment business of global scale, underpinned by robust financials, an unrivalled distribution footprint, a diverse content portfolio, including significant local and global content and IP, our own world-class production capabilities and entertainment platforms, and strong and long-standing partnerships with leading studios, streamers and sports rights holders.”