Canal+ has “made progress” in opposing a controversial proposal in France that would double the VAT rate on TV subscriptions from 10% to 20%.
Delivering a Q3 trading update, the French major said it has support from “cinema organisations, federations and leagues” and will continue fighting the rate increase tooth and nail.
“The Group has made progress in opposing the proposal, although the outcome remains uncertain,” Canal+ said. “Should the proposal be adopted into law, the Group intends to implement subscription price increases and significant cost reduction initiatives to mitigate the resulting financial impact.”
News of the planned French VAT hike emerged earlier this month in a draft budget plan presented by President Emmanuel Macron’s Prime Minister Sébastien Lecornu, although rumors had been circulating for some time. Along with the subs increase, Canal+ has said it “would be unable to absorb such a loss in France and would consequently be forced to adjust its operations in mainland France and the Overseas Territories.”
For Q3 2026, Canal+ revenue was virtually flat with the same quarter last year at just over €2B ($2.25) when the $2B acquisition of African giant MultiChoice is taken into account. Group revenue for the first nine months of this year was up 37.5% to €6.3B, with the MultiChoice deal a major factor.
The company has sought to significantly reduce costs in Africa since the MultiChoice buyout, with streamer Showmax discontinued earlier this year in a move that shocked the local industry. The rollout of the new MultiChoice offer will continue across English and Portuguese-speaking Africa over the coming months, Canal+ said.
Despite the proposed VAT hike, Canal+ said it is “well on track” to achieve its full-year guidance along with a lofty €250m synergies target.
“While the group is cognisant of the macroeconomic and political backdrop, its medium-term guidance remains unchanged,” added the results.
Revenue in the content division was up 8% to €173M and Canal+ boss Maxime Saada talked up a “landmark” 2026 for Studiocanal, citing Anthony Maras war drama Pressure and Fred Cavayé’s recent adaptation of Les Misérables starring Vincent Lindon and Tahar Rahim. There is also Elsinore starring Andrew Scott, which is being touted for Oscars.
Saada added: “We delivered a solid performance in the first nine months of the year as we continued to execute our strategy. Revenue was in line with our expectations, supported by strong momentumin French-speaking Africa and at Studiocanal.”
He said the company is “making good progress with the MultiChoice turnaround plan.”