Canal+ reported its H1 2025 financial results, highlighting strong free cash flow growth, but acknowledged challenges in Asia, particularly in Vietnam.

CEO Maxime Saada noted that subscriber growth in Europe exceeded expectations, while the Asia-Pacific region recorded negative growth.

Africa remained “almost flat,” though a new partnership with Netflix is expected to help, despite limited broadband infrastructure.

The report stated that in Asia, both subscriber numbers and revenue in Vietnam dropped due to the cancellation of a wholesale contract and a downturn in the pay-TV business.

It stressed that Canal+ is “carefully evaluating” its operations in Vietnam as they are being impacted by market conditions.

According to DecodeTV, Saada admitted, “We are at the point where the losses are significant and solutions are unclear. We may have to restructure drastically or even exit the market.” In contrast, operations in Myanmar have fared much better thanks to a different competitive environment, recently securing English Premier League broadcasting rights, which are expected to boost subscriptions.

Canal+ stressed that it is not abandoning Asia and remains optimistic about Viu - a platform with 15 million subscribers in which it holds a 37.2% stake, with a full acquisition under consideration.

Saada also remains confident in the planned acquisition of MultiChoice in Africa, though he has yet to reveal the target markets post-deal.

The company has launched a new mobile app in France, Poland, and Africa, integrating Dailymotion for short-form videos.

It has also signed content agreements for in-car entertainment, inflight services, and has become the first external content producer for Apple Vision Pro.

In H1 2025, Canal+ generated €3.086 billion ($3.37 billion) in revenue, up 0.9% in organic growth. EBITA reached €246 million, with growth in Europe offsetting declines in content production-distribution and a slight dip in Africa.

The company terminated its deal with Disney and cancelled several underperforming wholesale agreements in Poland, Vietnam, and other European markets.

The end of Ligue 1 rights, withdrawal from digital terrestrial television (DTT), and closure of the C8 channel are seen as cost-cutting moves to boost profitability.

Canal+ is also cutting jobs, affecting 250 employees and 150 contractors. Saada said the company is resolving “outstanding tax issues” and saved €100 million through a deal with a film organization.

Operating cash flow rose 86% year-on-year to €416 million, targeting €500 million for the full year. Free cash flow is expected to surpass €370 million, compared to just €29 million in 2024.

However, Saada warned that content rights costs will reduce cash flow in the second half of the year.

In Vietnam, Canal+ operates through Vietnam Satellite Digital Television (VSTV), owner of the K+ brand. VSTV, founded in 2009, is a joint venture between Canal+ and Vietnam Cable Television Corporation (VTVcab). In 2013, VTVcab’s stake was transferred to Vietnam Television (VTV).

According to company records, VSTV has registered capital of $20.1 million, with VTV holding 51% and Canal+ owning 49%.

Following Canal+’s earnings announcement, speculation arose that K+ would exit Vietnam. However, K+ dismissed this as “inaccurate information,” assuring that all sales, subscription renewals, and broadcasts continue as normal.

“In the fiercely competitive and fast-changing Vietnamese pay-TV market, we remain agile, adjusting services to adapt and serve our audience. The 2025/2026 Premier League season will return with exclusive sports and entertainment content across five K+ channels and our full subscription package,” K+ emphasized.

The 2025-2026 English Premier League season will be fully broadcast on five K+ channels alongside other sports and entertainment content included in the current subscription package.

Du Lam