Canal+ Owner Vivendi Is Still Exploring A Stock Split, Publishes First Quarter Revenue

Canal+ owner Vivendi is still exploring a stock split, as it today posted first quarter revenues up significantly.

France-based Vivendi posted Q1 revenues of €4.28B (R86 billion), up 5.4% on 2023’s numbers when using constant currencies and and the businesses the firm owns today. No earnings were revealed in the unaudited numbers.

Within those numbers, Canal+ saw revenues grow 4.3% year-on-year to €1.5B (R30 billion, +3.5% at constant currency and perimeter). International revenues were up 5.8% thanks to subscriber growth, particularly in Africa, where Canal+ has been buying up shares in MultiChoice and looks set to take over the South African giant. Mainland France TV operations revenue was up over 5%.

However, Studiocanal saw revenues decline compared with 2023, when the likes of Alibi.com 2 and John Wick 2 had significant domestic and international launches.

Other notable performances saw social video platform Dailymotion increase revenues by 24.8%, with the ‘New Initiatives’ division it is housed in posting €42M in revenues overall.

This financials come amid a period of corporate soul-searching at Vivendi, and following the takeover of publisher Lagadère in November last year.

The Paris-based company believes its stock price has been “substantially” reduced due to the consolidated nature of its media operations following the listing of Universal Music Group and wants to split its business.

Having already outlined a plan to explore dividing pay-TV and content giant Canal+, ad firm Havas and publisher Lagadère, Vivendi said a feasibility study into a stock split had been going since December 2023. The company says all three units are individually performing well — with each posting year-on-year revenue growth today — and have been hindered in their ability to invest by the “high conglomerate discount” on its shares.

The current plan is for Canal+, Havas and a publishing and distribution division would all list as independent entities on the stock market. Vivendi would also remain publicly listed “maintaining its role of supporting the transformation and expansion of its subsidiaries and continuing to actively manage its investments.”

Should the Vivendi board approve the split, employee representatives at each new entity would be engaged before necessary regulatory, bonder holder and other lender approvals is sought. A final vote would then take place at the AGM in April 2025 to ratify the moves.

Yannick Bolloré, Chairman of Vivendi’s Supervisory Board, and Arnaud de Puyfontaine, Chairman of Vivendi’s Management Board, said in a statement: “Today we are publishing a particularly sharp increase in revenues for a first quarter. This reflects the strength of our three core businesses and the Group’s ability to transform and grow.

“The organic growth of 5.4% compared to the first quarter of 2023 was notably driven by the significant contribution of Lagardère, validating the relevance of the transaction with this group last November and our confidence in the potential of its activities. Canal+ Group and Havas also delivered solid performances, with increases in reported revenues of 4.3% and 6.2%, respectively, over the same period.”

France’s Canal+ Takes MultiChoice Stake To 20%

French broadcasting giant Groupe Canal+ has again increased its stake in Johannesburg-listed MultiChoice Group, taking its position in the South African broadcaster to 20.1%.

Canal+ began snapping up shares in MultiChoice in 2020. It’s the first time the DStv and SuperSport parent has disclosed a change in Canal+’s shareholding since November 2021, when it disclosed the French group had bought 15.4% of its ordinary shares in issue.

“MultiChoice remains committed to acting in the best interest of all shareholders and to create sustainable long-term shareholder value. While the group regularly engages investors with its strategic partners and maintains an open dialogue with the investment community, its policy is not to comment on its individual shareholders nor on its interactions with them,” it said in Thursday’s disclosure to investors about the Canal+ stake.

 

The two companies have worked together for some time, sharing content between their respective markets Canal+ is owned by French media conglomerate Vivendi.

When Vivendi began buying up MultiChoice shares in 2020, it prompted speculation about the company’s intentions. It also fuelled a sharp rally in MultiChoice’s share price at the time.

MultiChoice first disclosed on 5 October 2020 that Canal+ had acquired 6.5% of its equity.

“Whether it’s Canal+ or someone else, we have a responsibility as directors of the company to do what is in the best interests of shareholders,” MultiChoice Group chief financial officer Jacobs in an interview in November 2020.

 

“Whatever opportunity comes our way, we will try to keep an open mind. We will certainly look at it and say, ‘Is this is in the best interest of shareholders or not?’ If it is, we’d need to embrace it and make the best deal we can for shareholders,” Jacobs said.

Canal+ previously told MultiChoice that it views the stake as a financial investment. The two companies have worked together for some time, sharing content between their respective markets. “We have an ongoing relationship with them in various territories,” he said at the time. 

Canal+ Increases MultiChoice's Stake To 18%

Canal+, the pay-TV unit of French media holding company Vivendi, has increased its stake in MultiChoice to 18.44%.

MultiChoice CEO Calvo Mawela revealed the increased shareholding by Canal+ during the company’s annual results presentation.

Mawela said they continue to have monthly interactions with Vivendi and that the French media likes MultiChoice, its management, and its prospects.

 

 

“Vivendi thinks MultiChoice is a well-run company that will continue to grow,” Mawela said. “They see MultiChoice as a good financial investment.”

The increased shareholding sparked speculation that Vivendi, through Canal+, could be looking to take over MultiChoice.

Vivendi previously tried to acquire MultiChoice Africa, but the multi-million-dollar offer was rejected.

MultiChoice said it kept an open mind about its relationship with the company.

Commenting on Vivendi increasing its stake in MultiChoice from 15% to 18.44%, CFO Tim Jacobs said they have been buying shares off the open market.

 

 

“They are not at a notifiable stage. That will happen when they get to 20%,” Jacobs said. “They have been active in the market, picking up a few extra percent since the last announcement.”

Richard Cheesman, a senior investment analyst at Protea Capital Management, previously said they see the opportunity, means, and motivation for Canal+ to buy a larger stake in MultiChoice.

 

“There is little geographical overlap between MultiChoice and Canal+ in Africa, and there would be many synergies from a merger such as content costs, satellite leases, and perhaps expediting the use of the MultiChoice tax losses,” he said.

“MultiChoice and Canal+ have monthly feedback meetings and have collaborated on some content. We view this as informal due diligence being done.”