Duting the past 12 months Canal+ France lost 401,000 subscribers, down to 5.145 million, with revenue down 3.8% compared to the first quarter of 2016, to €1,278 million.
However, the company said that there is a significant improvement in business performance following the launch of the new Canal offers in mid-November 2016. These offerings are more modular (optional theme packages built around the Canal+ channel) and more flexible (with or without commitment, 24-month contracts).
Canal+ also entered into new distribution agreements with Orange and Free, and wants to reduce costs by €300 million by 2018 (of which €110 million was achieved in 2016).
The first positive effects of the new offers were observed in March 2017 when, for the first time in many quarters, the number of new pay-TV subscriptions offset the number of unsubscriptions. Their impact on Canal+ Group’s EBITA is expected to be tangible from the second half of 2017, with a reversal of the downward trend observed since 2012.
Canal+ Group continues to accelerate its international development, particularly in Africa. This development is possible through the securing of certain key rights, such as the recently awarded pay-TV broadcasting rights to the 2018 FIFA World Cup in Africa and through investment in broadcasting methods for content offerings.
Revenues from international pay-TV operations grew by 8.0% compared to the first quarter of 2016, thanks to strong growth in the subscriber base, particularly in Africa where the year-on-year increase amounted to 649,000.
At the end of March 2017, Canal+ Group’s total subscriber base reached 14.7 million, up 3.2 million year-onyear, including 2.9 million Free and Orange customers gained as part of the distribution agreements formed with these telecom operators at the end of 2016.
Advertising revenues from free-to-air channels in mainland France slightly decreased year-on-year, despite an increase in C8’s revenues driven by a greater attraction toward the channel. C8 confirmed its leading position among DTT channels in France and was the fifth most watched French channel.
The negative EBITA trend recorded in the first quarter of 2017 is expected to reverse in the second half of 2017 with a positive change in EBITA compared to the second half of 2016. For the full-year 2017, Canal+ Group expects that its EBITA should amount to approximately €350 million.
