ENTDStv’s revamped subscription packages and premium-content strategy are central to CANAL+’s recovery plan, but the latest results show that the South African pay-TV business remains under pressure.

French media group CANAL+ is struggling to reverse the decline at MultiChoice, South Africa’s biggest pay-TV operator, after the business recorded a 3% fall in like-for-like revenue during the nine months to September 2026.

The decline was driven primarily by lower subscription revenue in South Africa, highlighting the challenges facing the DStv operator as it tries to retain customers and strengthen the value of its television packages.

According to CANAL+’s latest trading update, MultiChoice generated €1.81 billion in reported revenue during the period, equivalent to approximately $2.03 billion. That represented a 0.4% increase on a reported basis, but revenue declined when adjusted for currency movements and changes in the scope of the business.

The difference matters because the reported increase does not necessarily indicate an improvement in the underlying performance of MultiChoice’s operations.

DStv’s new packages are central to the turnaround

CANAL+ is relying on a simplified DStv offering, improved content and stronger customer value to revive the business.

On September 7, MultiChoice introduced new subscription packages in South Africa, promising subscribers more content, greater choice and better value at the same price.

CANAL+ chief executive Maxime Saada said the company was making progress with its turnaround plan, pointing to the revised packages as a key part of its strategy.

However, the changes arrived towards the end of the nine-month reporting period. Their potential effect on subscriber retention, spending and revenue was therefore not fully reflected in the latest figures.

CANAL+ plans to extend the rollout to English- and Portuguese-speaking African markets over the coming months.

Revenue decline moderates, but recovery remains uncertain

MultiChoice’s like-for-like revenue decline narrowed to 2% in the third quarter, compared with 3.4% in the first half of the reporting period.

While the moderation offers some encouragement, CANAL+ attributed part of the improvement to more favourable comparisons with the previous year’s sports-event schedule. The figures do not establish that the new DStv packages have already reversed the decline.

The latest update also did not provide subscriber numbers or average revenue per user. Without those measures, it remains difficult to determine whether the business is retaining more customers or improving how much subscribers spend.

Showmax closure adds to the restructuring

The MultiChoice turnaround comes alongside broader changes to the group’s entertainment operations, including the discontinuation of Showmax in April 2026.

CANAL+ has treated Showmax as a discontinued operation in its financial reporting as it reshapes its streaming and pay-TV strategy.

The group says it will continue investing in premium content, technology and strategic partnerships. The challenge is to ensure those investments translate into an offering that customers consider worth paying for in a competitive entertainment market.

CANAL+ reports growth following the acquisition

At group level, CANAL+ recorded €6.41 billion in revenue for the first nine months of 2026, up 37.5% compared with the same period last year.

Much of that increase reflected the consolidation of MultiChoice following its acquisition, rather than equivalent growth in the underlying business. On a like-for-like basis, group revenue declined 0.3%.

Performance also varied across the group’s markets. Africa and Asia revenue, including MultiChoice, increased 3.1% on a restated basis. Excluding MultiChoice, however, the Africa and Asia operations recorded like-for-like growth of 10.2%.

French-speaking African markets benefited from subscriber growth, stronger content offerings and improved distribution efficiency. CANAL+ Telecom Africa also reported double-digit revenue growth, supported by the expansion of its fibre-to-the-home network.

The contrasting results underline the difficulty of integrating MultiChoice’s underperforming South African business into a group that is experiencing stronger momentum elsewhere.

Sports rights remain a strategic advantage

CANAL+ is also strengthening its sports offering to protect its position in Africa’s entertainment market.

The company has secured exclusive rights to UEFA men’s club competitions across more than 40 countries for the 2027–2031 period. It has also secured African rights for the 2027 Africa Cup of Nations and its qualifying campaign.

Premium football can help broadcasters attract and retain subscribers, but the commercial benefit will depend on whether customers are willing and able to pay for the packages carrying that content.

For CANAL+, the challenge is to balance investment in premium programming with pricing and package structures that make sense for African households.

What happens next?

CANAL+ says it remains on track to meet its 2026 financial guidance, including €735 million in adjusted earnings before interest and tax and €250 million in targeted synergies, measured by adjusted earnings before interest and tax.

For MultiChoice, the next key test is whether the DStv package changes and stronger content can improve subscriber retention and stabilise revenue in South Africa.

The coming quarters should provide a clearer picture of whether the strategy is working. Until subscriber trends and customer spending improve, a smaller revenue decline alone will not prove that the turnaround has succeeded.

CANAL+ has ambitious plans for MultiChoice, but the latest figures show that South Africa remains a weak point. Better packages and premium sports rights could help, but the real measure of success will be whether customers stay subscribed and revenue returns to growth.