Canal+Sa

Good morning, and thank you for joining us. I am Maxime Sadar, CEO of Canal+. Welcome to the presentation of our 2025 results and strategic update. I am pleased to be joined today by Amandine Ferré, CFO of Canal+, David Mignot, CEO of Canal+, Africa, Christophe Pinard-Legri, CEO of Canal+, France, and Anna Marsh, Chief Content Officer of Canal+, and CEO of Studio Canal. Following the retirement of Jacques Dupuis, who has had a very significant contribution to Canal+, I am pleased to announce that Christophe and David will be joining Amandine, Anna and myself on the management board. I'm also pleased to announce that, subject to staff representative approval, Christophe Pinaludry will be leading Europe going forward. The achievements of 2025, which we will take you through shortly, are just a small part of what this team has delivered as what we have really done together over the last 10 years is turn around Canal+. This is the same team who will now turn around MultiChoice, together with the support from former leaders at MultiChoice who know their market. Before we start, I want to highlight that we have taken your feedback at heart and strive to give more insight on the performance of our activities. In this respect, we will first cover the historical perimeter of Canal+, with 2025 numbers and a 2026 guidance. In short, 2025 was a very successful first year for Canal+, as a listed company. We delivered on all our objectives and we expect to keep doing that in 2026. We will then focus on multi-choice and go into the detail required to give you a clear picture of where the business stands now and what to expect in 2026. From there, we'll provide you with a consolidated view of the combined group for 25 and 26. And given all the moving parts for this year and probably next year, we have also decided to share for the first time a medium-term outlook for our key financial indicators. Then each of our management board members will walk you through our medium-term strategic priorities. And we will end the session with any questions you may have. Let's kick off with the Canal+, historical perimeter. Before we go into our 2025 numbers, I wanted to start with a reminder about what has been achieved by the team at Canal+. Just one illustration of our progress. We have consistently grown adjusted EBIT with a CAGR of close to 6% over the past five years. We are satisfied with our year 2025, which landed above our guidance and continues this positive trend. 2025 was both a successful and transformational year for Canal+, as we delivered all of our key objectives. We were very pleased to resolve the wrong-running tax disputes in France and to have clarity for the future. Amandine will provide more detail on that in a moment. We continued to improve the profitability of the business in Europe, where there has been a real turnaround, including a 15% increase in adjusted EBIT this year. The improvement has been particularly significant in France, which Christophe will cover in a few minutes. As you know, one area we are very focused on is cash generation. As announced, we had an exceptionally high year in 2025. In 2025, we were also able to undertake significant debt refinancing. It went extremely well, and we managed to lower our overall cost of funding. Again, Amandine will zoom in on that topic in a few minutes. All in all, and most importantly, in what was our first year as a listed business, we achieved or exceeded all of our financial guidance. Focusing on our headline numbers, as I said, we achieved our guidance and actually exceeded it on adjusted EBIT, CFFO, and free cash flow. At the time we provided our 25 guidance, we were still operating in Vietnam and we had not acquired multi-choice. So we have provided numbers on that basis here. for comparison to guidance. On adjusted EBIT, we guided 515 million euros. We reached 527 million including Vietnam and 542 million excluding Vietnam. On CFFO, we expected more than 500 million and we achieved 587 million including Vietnam and 606 excluding Vietnam. On free cash flow, we guided more than 370 million and achieved 428 with Vietnam and 448 million without it. We start the year in a strong position. Now over to Amandine for more detail on our results.

Thank you, Maxime. Now focusing on the Canal Plus historical perimeter, excluding multi-choice, and as Maxime explained, also excluding Vietnam. Starting with our customer base, in 2025, it increased by over 2 million versus 2024, with a peak of 28 million at the end of the year, thanks to the AFCON, which has come off a bit since then. One thing I'm very pleased about is the more than 1 million increase in our retail subscriber, which is, as you know, our main focus. I'm now going to go deeper into each of our segments, starting with Europe. As already mentioned by Maxime, Europe saw a significant increase in profitability, plus one percentage point versus 2024. This increase in profitability was driven both by top line increase with 1.1% in organic revenues and cost reduction. Improving profitability will remain the critical focus for the coming years, a point Christophe will cover in more detail. On Africa and Asia, our end-of-year subscriber base increased by 1 million in 2025 with a one-off effect of AFCON. This increase in subscriber base was a key driver of our top-line growth with over 3% increase in revenues. As you can see, we have managed to maintain a very high level of profitability with a margining rate of over 20% despite increasing in content cost and investment in subscriber acquisition. Of course, this does not include multi-choice that will be covered separately later. Finally, turning to content production and distribution. Revenues were down slightly year on year, mainly due to StudioKanal's exceptional slate in 2024 with Paddington and Back to Black. What is really important to note here is the ability of StudioKanal to deliver its bottom line, even when the slate is not exceptional. Later, Anna will go in more detail, not only on our content slate and plans for 2026 and beyond, which are very exciting, but also on how we are leveraging our competitive advantage on content cost. It's also worth mentioning the improvement economics of Dailymotion, with revenues up by more than 20%. Putting it all together, we had 1% organic revenue growth, excluding discontinuated operation. We managed to decrease content cost by 6%, while other costs increased due to one-off effect linked to the OCS acquisition in 2024. This, together with our profitability initiative, led to a 22 million increase in adjusted EBIT before exceptional item, a 4.2% increase and way above our guidance. Overall, adjusted EBIT margin before exceptional item reached 8.7%, a significant increase versus 2024, and putting us in a strong position to kick off 2026. One of the highlights of 2025 was the resolution of our TST and VAT tax institute in France. We are now completely clear on our tax regime moving forward and are very pleased to now leave this issue behind us. This settlement translates into high exceptional costs in 2025 that should be paid in 2026 and 2027 with final schedule yet to be determined. The settlement of these tax issues in France had a significant exceptional impact on adjusted EBIT with €346 million booked in 2025. The main part of this exceptional item comes from VAT settlement amounting to €363 million that were already partially provisioned. The rest is mostly the TST settlement and some fees related to the multi-choice acquisition. When you look at our earnings in 2025, the positive here is that we were up nearly 30% before tax. This is largely a result of our improved cost of financing and the result of our tax group consolidation in France. On cash generation, as Maxime already said, 2025 was an outstanding year. Starting from 542 million euros adjusted EBIT, we achieved an exceptional 119% cash conversion rate to reach 648 million euros CFFO before exceptional, and 606 million euros after exceptional, that include the impact of our redundancy plan that we announced last year and some fees related to the multi-choice acquisition. After taxed interest and overfinancial, including forex, we finished 2025 with close to 450 million euros in free cash flow. Finally, I wanted to give you clarity on what we expect next year on the historical Canal Plus perimeter. As a reminder, this is not our group guidance as it does not include multi-choice. And again, this does not include Vietnam that was discontinued. On revenues, we expect to see moderate growth, organic, following a similar trend as in 2025. On adjusted EBIT, we expect an increase from 542 to 565 billion euro, driven mainly by a continued improvement of our adjusted EBITDA margin. Our margin went from 7.8% in 2022 to 8.7% in 2025 and we expect to reach more than 9% in 2026. We will generate more than 500 million euros of CFFO before the payment of the VAT settlement and over restructuring cost. This number is way above our historical figures. We are providing figures before the payment of the VAT settlement as the payment schedule is not finalized yet. Similarly, On free cash flow before VAT and restructuring, we are targeting more than 300 million euros, which is again much higher than our historical performance. On both metrics, these figures should be understood as floors that we intend to exceed.

Now over to multi-choice. Our accounts will include figures from multi-choice starting on September 20th, so three months and 11 days. Here, we are providing pro forma 12-month figures from multi-choice for you to understand the new group starting from now. These figures are unaudited. On MultiChoice, I'm going to start by providing you with some context so you can fully understand the current dynamics. MultiChoice experienced great success in its more than 30 year history with very impressive growth from 2010 to 2023. It is only in the last few years that it has faced challenges and a decreasing subscriber base. Indeed, starting in 2023, Multi-choice entered into a negative cycle due to the combined effect of macroeconomic factors, such as currency devaluation in Nigeria and power cuts, a difficult transition to OTT with the expensive failure of Showmax, and finally strong inflation across most cost items, especially on content. All of these factors resulted in a strong decrease in profitability that multi-choice addressed through short-term measures, in particular reduction in subscriber acquisition subsidies, and price increases, which in turn had a strongly negative impact on the subscriber base, worsening the original profitability issues. The result of this cycle started in 2023, so it is important to remember that this is a relatively recent trend, with a steady decline in subscriber numbers, in revenues, and in trading profits. The latter has come up by 150 million euros per year for the last two years, from best-in-class profitability of around 500 million euros to around 200 million euros by March 2025.

Looking now at 2025 fuller figures as of December, we had the first effects of the commercial measures we took since taking control of the company at the end of last September with the slowdown of the decrease of subscriber base. Of course, AFCON helped as well with the usual temporary pay. We'll continue our work and return multi-choice back to growth, as David will soon take you through. To be noted, while revenues decreased by more than €140 million, adjusted EBIT decreased by only €26 million due to temporary cost-cutting measures. In 2024, CFFO reached €138 million versus €185 million adjusted EBIT, a 75% cash conversion rate. Premerger with Canal+, multi-choice deferred payment to meet its bank covenant, somewhere still outstanding at the end of year 2025, artificially increasing the CFFO. In 2025, adjusted EBIT reached €159 million. Cash conversion reached 142% thanks to this deferred payment, increasing CFFO to €226 million. Tax, interest payment and other financial get us to a negative free cash flow, of 79 million euros for MultiChoice at the end of 2025. Noting that the 225 million euros include a 43 million euro provisional tax that MultiChoice had to pay due to the change of its fiscal year to end of December. As you would expect from the first year of any acquisition, there are a lot of moving parts. We wanted to be as transparent as possible on where we stand with MultiChoice. Looking forward, we expect some inertia in the decline in subscribers, driving a slight decrease in revenues. On adjusted EBIT, we intend to stop the decline started in 2023 and bringing it back up to 170 million euros. These 170 million euros figures include the synergy and turnaround plan that Maxime will now break down.

And here is how we get to MultiChoice's 2026 year-end adjusted EBIT. starting with the 159 million euros from 2025. Based on the historical annual trend I showed you a moment ago, we expect a 140 million negative impact this year from a declining top line and from cost inflation. As a reminder, we acquired MultiChoice for two main purposes. One, to capture the African growth opportunity, and two, to benefit from cost synergies with our new greater scale. I mentioned before that investment in customer acquisition had been severely reduced. To turn that engine back on will cost us around 100 million next year, 90% of it variable. David will share more details on that plan. Regarding synergies, you will remember that in our January cost synergies update, we outlined an expected 150 million euros in cost reductions for 2025. We have been able to accelerate our synergies plan and we expect that number to increase to 250 million by the end of this year. Keep in mind that we took control less than six months ago. As a result, multi-choice adjusted EBIT should come in at around 170 million euros this year, excluding PPA. Coming back to the synergies, three important points. One, these synergies account for 3% of the total cost base of the combined group, Canal+, and MultiChoice together. Two, the 100 million are not additional cost synergies. Instead, we have been able to bring forward some of the synergies we had planned for 2027 and beyond. Three, most of the cost synergies for this year will impact Africa's P&L. This will not necessarily be the case going forward.

we have outlined what we expect on revenues and adjusted debits. On CFFO, we expect 100 million euros before VAT settlement and restructuring costs, and we expect a negative free cash flow of over 50 million on the same basis.

Now let's move to what the group looks like as a whole and our expectations for 2026. First of all, and most importantly, our group is far stronger today thanks to the acquisition of MultiChoice. Altogether, on a combined basis at the year-end 2025, we have over 40 million subscribers and nearly 9 billion euros in revenues. Our combined EBITDA before exceptional items is over 1 billion euros. Adjusted EBIT is 701 million. CFFO is 874 million euros. And free cash flow on a combined basis is 447 million euros. When we zoom out and look at the group picture, it is important to remember this is year one. We are at the very beginning of our journey as a combined business. We have already detailed the challenges, and very shortly, we'll switch focus to the opportunities. Our expectation from the outset was that investing would be required to restart subscriber growth. That is exactly what we're doing now. This will carry additional short-term costs, but that is to be expected in a transition year. So our 2026 guidance adjusted EBIT is at 735 million euros, which represents a 5% increase compared to 2024. We had CFFO and free cash flow at over 600 million euros for CFFO and over 250 million euros for free cash flow. Now it is when we move beyond 2026 that things start to get interesting. Over the medium term, We expect to see moderate growth on the top line, over 850 million euros of adjusted EBITs, over 800 million euros of CFFO, and over 500 million euros of free cash flow. But, and this is important, expect this to be the bare minimum. We are aiming to do more. And perhaps even more importantly, this medium-term outlook is not our endpoint. It is not what we're aiming for long-term. It is the starting point. for the next phase of growth. And I can tell you that personally, I'm incredibly impatient to get there. Now let's cover how we will get there and why we are so confident in our plan. The next few years will be about delivery. There are many initiatives ongoing at Canal+, but today, for the sake of time, we have outlined the four key priorities to deliver on our medium-term objectives. First, following our comprehensive review of MultiChoice, We will turn around the business and ensure we are well positioned to benefit from Africa's growth potential. David Mignot will take you through our plans next. Second, we will continue to focus on increasing profitability of our operations in Europe, building on our work over the last few years. Christophe Pinallery will take you through this section. Third, we will continue to enhance our already outstanding entertainment platform, which we believe is the best in Europe and Africa today, an area we have long excelled in. That means providing the best local and global in-house content, as well as premium sports and partner content. This is a constant priority, and Anna Marsh will take you through this section soon. Fourth, our approach is about discipline. I have said it before, and I will say it again. Companies in our sector struggle because of the lack of discipline. We have seen it happen at Viaplay. We just showed its impact at MultiChoice. This is why we will continue to pursue a rigorous approach to costs, capture synergies, and apply a disciplined capital allocation policy. I will now hand over to David.

Well, thank you, Maxime. So I will now take you through our turnaround plan for multi-choice and outline our strategy for capturing the growth opportunity of Africa. So as you know, thanks to its improving macroeconomic, demographic and connectivity trends, sub-Saharan Africa has huge growth potential. So the population is expected to grow by nearly 800 million by 2050, and GDP is forecast to grow too by 4.5% as an average. But what is even more significant is the increasing electrification rate. And as I've said before, when people do get electricity, one of the first things they buy is a television set. And so we are seeing an increase in the pay TV penetration rate. And the good news is that there are still limited competition across the marketplace from streamers companies. So when you look at it in terms of scale, we operate, as you know, in 40 countries and we are leader in 34 of them. We reached this position thanks to the strengths of our content offering and our distribution network. So on one hand, local content proved to be a key differentiator in Africa. And we provide content in over 50 languages and more than a hundred channels. And on the other hand, we have an extensive distribution network and a significant direct to customer experience on the continent that is hard to replicate. And still, this is an area where we can do more. We are planning to increase our focus on Salesforce in multi-choice markets, which I will come on to in a moment. So one thing you will have heard us talk about before is the strength of our leadership team in Africa. As you can see, we have kept a core team of exceptional leaders from multi-choice who have significant experience in the market and who have added some of the best leaders from Canal+. So this is a highly capable group. They have all played significant roles in designing the turnaround plan and they will handle its execution. This team is one of the key reasons we are so confident that we will return MultiChoice back to growth. So remember that prior to the acquisition, Canal+, was already a significant player in the African market. As Maxime said, I became CEO of Canal+, Africa in 2012. And most of the team you have just seen have been with me and part of the growth journey you can see here. So in 2010, we had around 400,000 customers in French-speaking Africa. And since then, our subscriber base has multiplied by more than 20, and we have closed 2025 at around 9 million subscribers. Second, and this will give you a sense of the scale of our business, we have today a 50% audience share of our in-house channels onto our subscribers. And just as Canal+, has been the leader in French-speaking Africa, MultiChoice has for a long time been the leader in English and Portuguese-speaking Africa. And MultiChoice has also demonstrated its ability to grow on the continent, having more than quadrupled its subscriber base between 2010 and 2023. Again, a lot of our leadership team today played important roles in this growth journey. But however, as you know, Multi-choice has not been performing as well over the last three years. This decline was due to combination of internal and external factors. Multi-choice markets have been struck by currency devaluation, inflation, low trading, especially in South Africa and Zambia. And you add price increases on top of that, less investment in the commercial engine, and you can see why the base has declined over the last three years. But that is all history. And what is important is what is coming next. At the highest level, our aim is very simple. We will leverage our experience, both from Canal Plus and MultiChoice, to reverse the recent trends at MultiChoice. That work is well underway and already having an impact, but it will take time before we see the full impact. We will get back to profitable growth, and this work has already started, as Maxime mentioned, We are investing a hundred million euros this year in our boost plan. And so we are starting quickly. So let me get into the turnaround plan now. Our aim and this plan is how we will achieve it. And the plan has four pillars to it. First, as you would expect, we focus on content through joint productions. our in-house channels, international content, which our scale makes easier as we can negotiate much broader agreements than multitudes could alone. And by sharing content and rights, we will provide the best content offer on the continent. Second is how we package that product and we will make it as appealing as possible. That means clear and simple commercial offers and branding, and of course, improving and intensifying our marketing. Third, which is very closely related to our second pillar. Of course, we are increasing our focus on new subscribers. With the best content and simple appealing commercial offers, our acquisition engine can and will be far more effective. In fact, we are going to shift the focus of our business much more towards sales. On top of that, we will broaden our distribution network and we will lower the entry costs. As needed, we do provide a premium experience and there is an aspirational element to it, but it has to be accessible. Those first three pillars are what we will do, and we know from our experience how effective they will be together. But we also know this only all works when it is underpinned by operational excellence. This is where being part of the global Canal Plus group really comes into play with best practices our standard operating model, and of course, synergies from our scale. And last but not least, we have also learned a lot on anti-piracy, and we implement that in Africa too. Multi-choice, we are already doing good work here, but there's more we can bring across from Canal+. So those are the key elements. Nothing revolutionary, but a lot of work to do. So now going into a bit more detail on each of those four pillars, starting with content. As you may know, sport is a critical part of our offer in Africa. Football especially is huge. And this is one area where we are very strong and the clear market leader. Like all content, sport is local and global. Both are critical and that's why we offer both. So as I said, football is huge in Africa. We have the best football from around the world, Champions League, Premier League, La Liga, Ligue 1, and more locally, the recent AFCON. The average audience was 1.5 million in French-speaking Africa alone, with a peak of 5 million in Morocco against Cameroon semi-final, and millions more watched AFCON in multi-choice markets too. On top of that, our subscribers can watch the biggest sporting events from around the world, from Grand Slam tennis to PGA Golf, the NBA, through to Formula One and MotoGP in racing, international cricket, UFC, and so on. Locally, there are huge fan bases and audiences for the Basketball Africa League, the Premier Soccer League in South Africa, South Africa Rugby, as well as the SA20 cricket, and more. So this is all underpinned by Canal Plus Sport and Super Sport, major brands in their own right, with the highest level of productions and analysis, as well as internationally recognized talent. And that's just what we have in sport. More broadly, we offer so much content, it really is the best you can get on the continent. We have over 100 in-house local channels in Africa, fully dedicated to giving the audience what they want, including super strong channels brands, just like Super Sport. We produce local series, TV shows, which are key for domestic consumption in markets like South Africa, but also across the African continent as a whole. We develop this local content with creatives who have a deep understanding of their audience, being strongly rooted in many African cultures and languages. In total, every year we produce 10,000 hours of fresh local movie series shows for our audiences in Africa. And so this really isn't just about providing the global content we would recognize in Europe and the US, And of course we do that too, as you can see, but we do far more than that. And we keep producing and providing local content that is made for our subscribers. On that global content, it is important that we deliver content from partners like Warner browsers, Universal and Netflix amongst others. And apart from the tailored local content, what our subscribers in Africa watch is not so different to what our subscribers will watch in Europe. And again, we will be looking to really extend our partnerships as we did with Warner Bros at the start of the year. And just as we added Netflix to our offer in French-speaking Africa last year. Finally, we also provide a large range of international channels and IPs like Discovery, CNN, National Geographic, and many other mainstream TV networks. And also importantly, content is one area where we are already seeing the advantages of our combined scale. Since the transaction, we have already made a lot of content available across from multi-choice and Canal Plus countries. We've also added English language options for Canal Plus subscribers and some content too, including from Super Sport and National Geographic. And this is all within the first few months. So of course, this is just the beginning of what we can do here. Finally, on content, we announced last year that we would extend our partnerships with Netflix into Africa. I'm pleased to say that we have now done that, bringing Netflix to 20 countries in Africa, and that was the first on the continent. So our partnership with Netflix began in France in 2019, and it is stronger now than ever. So you may have seen that Ted Sarandos joined our Original Plus event in Paris in December, at which he and Maxime discuss the importance of our partnership, both to our businesses and our subscribers. So given the quality of the Netflix content, the benefits to our subscribers is obvious, but this partnership really is beneficial to both of our businesses too, as our subscribers can enjoy Netflix world-class content alongside with our own, without taking a separate subscription and are less likely to churn as a result. And as I said earlier, OTT penetration is only 4% in our markets in Africa. And as broadband penetration isn't as high, Satellite will be as far the best content delivery method for quite some time. And that's also of interest for Netflix. So that's the content, our product, which is already brilliant and is getting better. Next is our second pillar, is how we package that content in our commercial offers. So you can see that today there is a huge variety of different offers, fees, and there's actually 17 different price points and up to five different decoders too. But we know from our experience at Canal+, in Europe and Africa, that this isn't what consumer wants. They want simplicity, they want value for money, and that's exactly what we are going to give them. So another benefit of our new scale comes through branding and marketing. We have incredibly strong brands in Africa with Canal+, and DSTV, and both of which are universally recognized, but we have too many sub-brands. And that fragments our marketing investments and dilutes the impact. So in France, for example, we use the Canal Plus brand across DTH and streaming. So the brand is the same for every subscriber and every cent we invest in marketing benefits the master brand as well. And that's not true for Africa. In multi-choice markets, for example, we have DSTV for DTH, GoTV in DTT, Showmax and DSTV Stream in OTT. And there are also a wide mix of premium channel brands and local channel brands. Some of them, like Supersport, are hugely valuable brands in their own right, but rationalizing our brand portfolio is another thing we can do to improve our position in Africa and make better use of our marketing investment. On our third pillar, our powerful acquisition engine, one difference that really stands out today, look at the slide, is the entry price for Canal+, and MultiChoice. That's the ticket price for our customers And so buying and installing a set-top box and satellite dish with one month subscriptions. And there's a point at which this becomes too high and puts people off from subscribing. As you can see, in Canada plus countries, it can go down to around 13 euro, but for multi-choice, it's usually three times higher. So this is one area where we are correcting quickly. We are introducing subsidizing, standardizing set-top boxes and dishes And of course, the cost of this is already included in our boost plan. So bringing down the ticket price is absolutely key for getting new subscribers in, and it is well worth the investment, but it's just one side of the coin. The other side is ARPU. Once they become subscribers and then maintaining and increasing that ARPU, we have managed this successfully, both at Canal+, and MultiChoice in Africa by providing high value offers. So of course, all of this only works if you have an effective sales force and distribution network. As you can see here, this is one area where multi-choice is clearly underway. We have three and a half times more point of sales per electrified households in Canal Plus market than we do for multi-choice, and so we are going to fix that. As I said at the start, those three pillars, providing the best content, simplified appealing offers, going hard after new customers with the acquisition engine. Those three, we need to be underpinned by operational excellence, and they will. This is what we call our mastermind framework, and we apply it across 15 functions. So we have identified 270 best practices that have proven effective across the group, and we are implementing them, and more importantly, tracking their impact across 30 business units and countries. So you will see a few examples here and how we think about it. For example, in some markets, our top channels are not available for replay on the app. So we are not capturing the full audience potential. And that's just one example from 270 that we are fixing and getting into. And now let's focus on over the top. And I'm sure you will have seen our announcement last week on Showmax and our decision to discontinue it. You will often hear us talk about our state-of-the-art platform as a differentiator, and it really is, and there is nothing else like it, and certainly not in our markets. So our long-term aims is to unify our platforms and approach to OTT in line with what we have done in France, and to strike commercial and aggregation partnerships with streamers, as we have with Netflix in Africa, but with local telcos, and to ensure our platform is available on smart TVs, just as we have done in other markets with Samsung, LG, and other manufacturers. As well as providing the best content, we want to provide the best OTT platform, and we want to make that platform accessible as widely as possible. So that's our return to growth plan, and to get it all going, we are already paying up to 100 million euros that we are saving from cost and starting this year. So we are not only going to break the negative cycle Maxime talked about earlier, we are going to turn it around completely. Our go-to-market initiatives will fuel the subscriber base, which in turn will increase profitability. And so that's the cycle MultiChoice should be going in, and we know how to get it there.

And now let me hand over to Christophe. Thank you, David, for sharing the turnaround plan for MultiChoice and the African Growth Opportunity. I am now going to cover our second strategic priority, which, as Maxime outlined, is increasing profitability in Europe. Europe is where we started, of course, our historical base and where Canal Plus has a large and diversified platform with significant scale and strong market position in France and Poland. But beyond scale, our focus is very clear, profitable growth. Today, besides Africa, Europe is one of our two key markets, and with 18 million subscribers, it accounts for nearly half of the group's subscribers and revenues. We operate in around 10 European countries, including France, Poland, Belgium, Czech Republic, Slovakia, and the Netherlands. Together, those territories represent 200 million people, offering Canal+, a significant opportunity of growth, in markets where audiences are highly engaged with content and willing to pay for premium offerings. We also hold a strategic stake in Northern Europe through Viaplay. As we have observed in the past months, several major European media groups appear to be refocusing on their domestic markets, such as Sky, which is exiting Germany and Bertelsmann refocusing on Germany and exiting countries such as France. This creates an opportunity for Canal+, to reinforce its leadership in Europe and become the only player with a true pan-European ambition and footprint. Across Europe, we apply one common strategic framework, but we have different priorities depending on the maturity of the market. In Benelux and Central Europe, led by Yacine Bouzouba, our operations are profitable but no longer increasing. In order to reverse the profitability trend, we have two key priorities, premiumization and shifting to OTT. These markets have historically relied on lower-priced channel bundles. The objective now is to enhance the value proposition, including launching cannabis-branded channels with premium general entertainment content and sports rights. We have already started this strategy in Austria, as we now offer the Champions League, the Europa League and the best golf competitions. And in Czech Republic and Slovakia with the Premier League and the WTA. In Poland, led by Edita Sadowska, who is doing an amazing job in a very competitive landscape, the business is profitable and well established. We already have a premium value proposition with premium movies and series and premium sports rights, such as the Champions League, La Liga, the Première Ligue and very popular local contents such as Speedway and Extraclasse. Our focus there is now to accelerate the OTT transition and making sure our satellite subscribers increase their usage of our digital platform. Finally, in France, our historical markets and where our model is the most mature, we have the strongest value proposition with the best of cinema, series and sports, which has been enhanced with a successful super aggregation strategy. The transition to digital is largely complete. This is why our main focus in France is improving our profitability. Let's now focus on that. Over the past few years, we have already made significant progress in France. As you can see, between 2023 and 2025, our adjusted EBIT in France increased by 130 million euros. We have achieved this improvement with two key levers on which we will continue to rely. First, top-line initiatives. And second, and more importantly, a systematic review of our cost base ensuring that every euro invested contributes to value creation. I will now deep dive into these two elements. First of all, our top line, we took advantage of a tremendous market growth driven by global platforms such as Netflix, Prime Video, Disney+, Paramount+, and HBO Max. Over the past 10 years, the French pay TV and SVOD market has doubled, starting from 10 million households with a subscription in 2016 and reaching 22 million households in 2025. This incredible increase provides Canal Plus with a significant potential for further growth. Thanks to a deep reshuffling of the Canal Plus model in France, we have successfully captured part of this market expansion and turned around the business. Declining prior to 2019, Our retail subscriber base in France has today returned to sustained growth and has increased by 21%. 2025 is our sixth consecutive year of growth and both 2024 and 2025 recorded the strongest increase in the past 15 years. The turnaround of Canaplus in France has been supported by a deep remodeling of our distribution strategy. The digital-first approach has allowed us to enlarge our commercial footprint and to target new audiences. Online sales have been multiplied by 13 over the last 10 years and now represents 50% of our sales. This strategy enabled us to maintain control of our distribution with 60% of our sales directly handled by Canal+. Also, we can still rely on strong relationships with telecom operators. Moreover, we remain the only player distributed in France leading retail stores, such as Fnac and Darty, which is a clear competitive advantage versus US streaming platforms. And we will continue to expand our distribution footprint through new partnership whenever it makes sense, like we did recently with Smart TV Manufacturer or Air France or Renault, for example. In addition to digital sales, we have successfully executed the OTT transition, shifting the usage of our DTH subscribers to our digital platform, with a lot of them keeping their DTH subscriptions. Today, 26% of our subscribers directly have access to Canal+, through an OTT equipment. But most importantly, 91% of our subscribers use the Canal+, app monthly. This improves user experience and customer loyalty. And thanks to that, we also have a better understanding of their usage to push the most relevant content for each subscriber. Besides the shift to OTT, the main driver for Canal+, is to enhance our value proposition. We now provide the most comprehensive content offering on the French markets. built on three main pillars. First, cinema, with the best of French and international movies available six months after release, exclusively on Canal+. We also provide the best series, including our own original contents. Second, major sports rights, including 100% of the UEFA Champions League until 2041, and a host of other competitions, which enabled us to end our historical dependency on League One. And third, our super aggregation strategy with major streaming platforms such as Netflix, Paramount+, Apple TV, and HBO Max directly into our offering and our application. The benefit of this strategy is clearly reflected in our customer satisfaction and loyalty scores, with 82% of satisfaction among subscribers, which is a record for Canal+. In addition, 85% of our subscribers are currently committed with a one or two year commitment contract. It is an untenable asset for us. And a large proportion of our subscribers have remained loyal to Canal+, for many years, 25% of them for more than 20 years. This level of loyalty is extremely rare in the media industry. and we can count on it to continue growing our subscriber base. Another benefit of our super aggregation strategy is to expand successfully reach among younger audiences. Through our dedicated offers such as the Rappus package and contents, Canal+, provides the most attractive entry-level offer for subscribers aged 18 to 26. As a result, The number of Cannabis subscribers under 26 in France is not significant with more than half a million subscribers. Looking forward, we will continue to target new audiences thanks to our super aggregation strategy and our comprehensive offering. French households have multiple subscriptions. 22 million households each accumulate 3.8 subscriptions on average and spend on an average of 30 to 40 euros. Thanks to our unique bundled offers, integrating streaming platforms, Canal+, is well positioned to take advantage of the situation. As you can see, for example, the Canal+, Cineserie offer provides a compelling value proposition compared to subscribing individually to each platform with a 50% discount versus market price. Looking ahead, we see a number of other additional levers for top line growth. First of all, entry level offers supported by advertising. This could enable us to reach more price sensitive audiences while generating additional advertising revenues. As a matter of fact, our advertising revenues have increased by 13% per year since 2021. Another lever we can pull is selective price increases on our customer base supported by the strength of our value proposition and the loyalty of our subscribers. And then there is the potential targeted reduction of cost sharing outside the household, which could represent another monetization opportunity as observed on the market. Finally, profitability will mostly come from cost cutting and demonstrating our strong cost discipline. Several measures have already been taken and are starting to have an impact, while others will contribute to improving our margin in the coming months and years. On the content side, it includes the end of the League One contract, the end of the Disney Plus distribution partnership, the renewal of the Champions League rights at more favourable terms, which will see the benefits from 2037. The new agreement with French cinema organization with an average spend of 160 million euros over 25 to 27 compared to 220 million euros in 2024. In addition to that, we have already implemented structural cost measures, including a layoff plan and the exit from DTH distribution. More will come. Above all, our European business benefits from strong structural foundations and our focus going forward is very clear, improving profitability. Thank you. Now to Anna Marsh.

Thank you, Christophe. Now moving to our third key medium term priority. Canal Plus delivers an unmatched value proposition by offering subscribers access to the very best content available globally. Our unique aggregation model showcases our very own in-house produced Canal Plus channels and brings this together with leading third party platforms, including Netflix, HBO Max and Be In Sports, as well as pay and free TV channels like National Geographic, BBC and SABC. This aggregation strategy delivers several key benefits. Firstly, It appeals to the entire household by offering a diverse range of content that caters to different tastes and age groups. Secondly, it helps reduce churn. With such a diverse content mix, subscribers are more likely to find something that keeps them engaged over time. Thirdly, it supports premium pricing and drives higher ARPU as customers see strong value in accessing a broad selection of high quality content in one place. Finally, It provides flexibility in managing costs since the platform does not rely on any single piece of programming. I know Maxine will elaborate on that later. So let's take a look closer at what this means for our customers and the breadth of content they can access. Canal Plus offers top sports coverage in every territory, broadcasting major competition leagues in football, rugby, golf, basketball, motor racing, and more, with live events produced by our expert teams on our very own channels, Canal Plus, And of course, super sports in South Africa. We have secured major sports rights in Europe and Africa for the long term, including rugby's top 14 and the champions league in Europe until 2032 and 2031, respectively. The formula one through 2029, as well as long-term contracts for football, golf, and cricket in Africa. We offer subscribers extensive access to premium US content through partnerships with top American platforms and major Hollywood studios. Our US content portfolio is broad and diverse. From Margot Robbie to Tom Cruise to award-winning shows like Adolescence or The Pit, there is something for everyone in the household. So as demonstrated, aggregation is essential and is a differentiator. But there is also something else that sets us apart, and that is our in-house production engine, Studio Canal, which I'm truly proud to lead. We will continue strengthening our capabilities with Studio Canal, the leading content studio in Europe and Africa, with a network of 23 production companies across 16 countries, producing 200 films and 80 TV series per year. And we own the single largest and most comprehensive catalogs in Europe and in Africa, with a combined 18,000 titles providing strong IP and extensive adaptation rights for ongoing storytelling. In Europe, we continue to expand our production capacity and library with targeted M&A. This year, we acquired a minority stake in UGC, which owns 160 titles, including the iconic Amélie, and operates 550 theatrical screens across Europe. We also took a 51% stake in Lucky Red, Italy's top independent producer and distributor, hence recently adding 500 more titles to our catalogue. In Africa, we believe local stories hold the potential for global appeal. We have begun investing in local productions with TV series Spinners in its second season and epic tale Chaka Elembe in its third. Two feature films and two series are in development in the English language including Graceland, the story of Hugh Masekela and Paul Simon's creation of the said music album, and an Ocean's Eleven-style heist movie to be directed by the acclaimed Ava DuVernay and starring David Oyelowo. We are also proud to be developing Chimamanda Ngozi Adichie's best-selling novel Americana into a TV series. Our achievements rely on building strong relationships with world-class talent. We aim to provide a positive experience for everyone, whether they are on or off camera. And we foster continued success in future collaborations with writers, showrunners, actors, and directors, both in Europe and internationally. So with our extensive geographical footprints, strong catalog of assets, and excellent talent relationships, we are well positioned to truly focus on building global IP that can thrive across all our markets. This is demonstrated by a successful debut TV series franchise, Has Fallen, now in its second season. Beyond that franchise, we are creating new TV series based on several of our well-known IP, including The Army of Shadows, The Red Circle, Nonstop, or The Avengers. For over a decade, we've built a highly successful global franchise in Paddington that has seen over 1.5 billion euros in gross consumer sales. Paddington boasts over $700 million in global box office revenue, making it the biggest independent family film franchise ever. Beyond the cinema, our beloved beer appears in various other forms, including an Emmy award-winning animated series, a Roblox game, an immersive experience on the South Bank, in a newly renovated store at Paddington Station, and a West End musical at the Savoy Theatre. We're proud to announce that we have generated some of the highest advance ticket sales in the history of the West End and on Sunday won nine Watts on Stage awards. We've also become the most nominated new musical with 14 further Olivier nominations. This of course encourages us to continue to replicate this model and develop new global franchises, especially in the kids space. Our expertise demonstrated through the success of Paddington will serve as a foundation for developing additional brands into similarly thriving franchises. As illustrated, we have numerous promising projects underway, each rooted in robust intellectual property with the potential to become global franchise successors. Among these are Pippi Longstocking and Mr. Men and Little Miss, both being developed in collaboration with our Paddington producing partner, David Heyman. There's also Britain's Toto the Ninja Cats, France's Asterix Nobileaks, tween fantasy adventure Beast Quest, and Lottie Brooks, an adolescent character reminiscent of Bridget Jones prior to her adult experiences. Now, there is one thing that all these properties have in common. That is, they all began as books. With that in mind, we will shortly be announcing an exciting partnership with one of the world's leading publishers, Hachette Livre. From the top 100 worldwide box office hits last year, 40% were literary adaptations. And of those running for Best Picture at the 2026 Academy Awards, half are book adaptations. Needless to say how excited we are about this future opportunity. Before Maxime and Amandine discuss cost discipline, I would like to briefly explain our approach at Studio Canal. Our strategy is twofold. We keep production costs lower than most American studios and reduce risk with pre-sales and strategic partnerships. To illustrate our approach to managing productions within strict and efficient budget parameters, here are three examples that demonstrate how we deliver large-scale films while significantly reducing overall costs. Firstly, for Glenn Powell starring How to Make a Killing, we successfully turned Cape Town into New York City and lowered the estimated budget from $25 million to $16 million, all while preserving the project's scale and integrity. For Paddington in Peru, instead of taking the full cast and crew to the Amazon, we sent a small team to South America to film real jungle scenes. These shots were expertly blended with UK locations, creating the illusion that our bear was truly in Peru, thereby saving tens of millions of dollars. And with our current production, Custom of the Country, we're recreating Gilded Age New York and Lisbon, Portugal, starring Sidney Sweeney. Choosing this location delivers similar visuals and reduces costs by roughly 30%. Here you can see that the Mafra Palace convincingly stands in for the Metropolitan Museum. The scene set in Paris will be filmed in our homeland as well. Now, it is important to note that all of these examples, the initial quotes we use as benchmarks, are already competitively priced and well below standard market levels. The final net costs for each of the films presented here are substantially lower than what a US studio would typically spend to produce comparable projects. We combine rigorous budget management with a robust pre-financing model, ensuring that our commercial teams secure pre-sales prior to the commencement of production. In TV, lead commissioners typically cover between 80 to 90% of the net budget, as seen in the Apollo has fallen example, which is pre-sold to Hulu, Amazon, Mediaset and Movistar outside Canal Plus. This level of risk offsetting is not as common in feature films, but much like in television, Studio Canal targets early and robust pre-sales. In this case study, pre-sales representing more than 80% of the net budget for these four English language films were secured prior to release through partnerships with reputable, long-standing collaborators, several of whom are featured here. And whilst we're on the topic of sharing costs with like-minded partners, I'm delighted to announce a partnership between Canon Plus Group and the creators of Day of the Jackal, Sky. This new partnership will see both companies team up to co-develop a slate of high quality event TV series. We're thrilled to collaborate with like-minded partners, sharing a complimentary geographical footprint and similar editorial goals. Our past experience working together has proven successful. having already co-produced several hit shows like Jude Law's The Young Pope and Zero Zero Zero. By combining our resources and creativity, both partners will be able to share production costs and maximize the potential of new ambitious content. So I'll now hand over to Maxime and Ameline for the next section.

Thank you, Anna. Our fourth and final priority underlining all the others is our disciplined approach to cost and capital. In this section, we will cover three areas. First, we will detail a rigorous approach to cost management. Second, we will provide you with an update on cost synergies we will deliver following the multi-choice acquisition. Third, we will present the key principle of our capital allocation strategy. You have heard Maxime and I saying that many times. Costs are a key focus for us and for everyone at Canal+. That is not going to change, and it has become even more important with our new scale.

The first pillar of our rigorous approach to costs is our generalist and super aggregation model. What do I mean by that? Simple. By providing free-to-air channels, in-house and third-party pay TV channels, and streaming platforms across all our geographies, we are not dependent on any specific content. Because we are covering the full spectrum of content, this model brings benefits in terms of customer acquisition, customer loyalty, and most importantly, in terms of costs, as we enter negotiations and tenders from a position of relative strength. When contracts are no longer financially viable, we drop them, just as we did in France with Ligue 1 and Disney, with very little impact on our subscriber base. As you know, the second pillar of our rigorous approach to costs is our analytic capabilities, which enable data-driven decisions. We have developed a unique, state-of-the-art model, which tells us exactly how significant a rate is on our subscriber base and how much it is worth to us, how it will impact customer acquisition or loss, loyalty, and ARPU. The recent UFA tender is the best example of this. We knew the precise value of these rights for our business, and that enabled us to be very disciplined and accurate in our negotiations. We bid the right price for us, and in this case, we were delighted it worked out as UFA is a great partner. Beyond costs, Having another five years of exclusivity allows us to provide the visibility our subscribers need to make long-term commitment to our platform. We are now taking these digital and analytics capabilities to the next level using AI. Today, I am very proud to announce two new equally important partnerships with Google and OpenAI. Starting with Google, we will deploy Google Cloud's latest AI tech into the Canal+, app, and trial the technology for specific uses in production. With improved content video indexing, we can individualize the experience on the Canal+, including on the home screen. And on content creation, creatives from Studio Canal will be able to use AI to generate scenes that were previously impossible to produce, expanding the creative possibilities of Canal Plus productions. This is not about replacing human creativity. It is about adding another tool to our production kit. not unlike the improvements in special effects over recent years. This teaser video will explain what content indexing is far better than I can. We are also partnering with OpenAI to build major enhancements to the Canal+. OpenAI's technology will power the app to offer a search experience that goes far beyond traditional keyword-based queries. Subscribers will be able to express what they want to watch in their own words and to receive tailored content suggestions that truly meet their expectations.

Moving now to synergies to explain how we'll deliver the ambitious plan we present earlier through a relentless focus on execution. As already explained, achieving synergy through scale is one of the two reasons why we decided to acquire MultiChoice. Continuing our work, since the January announcements, we are pleased to announce that we will deliver these synergies even sooner than we initially anticipated. Indeed, we are now confident we can deliver at least €250 million adjusted debits and €220 million free cash flow cost synergies as soon as 2026. To be clear, these are not additional synergies. These are synergies that we had planned to capture in later years, but we are implementing now. Of course, this acceleration brings additional costs in 2026. As a result, we are updating our restructuring cost estimate for 2026 to between 70 and 100 million euros. It's important to understand that these costs are not new. They were initially planned for 2027 and beyond and are mainly anticipated, like the synergies. One reason why we are able to accelerate this delivery of synergies worth 100 million euros is linked to the announcement that we have made last week, the discontinuation of Showmax, to which I will come back shortly. But this is not the only reason. We were also able to accelerate other cost saving initiatives, not only on content and branding, but also structural costs, tech, especially with the restructuring of IRDETO, based in Amsterdam. We have said that before on Showmax, it was bleeding money. These losses alone could have brought down MultiChoice. It was incredibly important that we resolve this quickly, and so we are pleased to have done that earlier than expected. The discontinuation of Showmax is the start of a new chapter. We will eventually roll out the Canal+, app, already available in 32 countries, across all of the multi-choice markets. One platform, one brand is the key recipe to successfully transition to OTT. To support our growth in Africa, as David has said, we are shifting our model and strengthening our commercial capabilities. To do this, we will increase our on-the-ground presence with a major recruitment plan and sales focus position. Following the closure of Showmax and to adapt to our new phase of development and optimize the group's cost structure, a voluntary plan will soon be open to Showmax and multi-choice support function, in compliance with the social procedure of each country. We will also begin the restructuration project at IRDETO, multi-choice technology and cybersecurity company in the coming weeks. These developments are part of a clear strategy. to streamline certain functions while investing more in activities that directly support the group's growth and business development. Reflecting the acceleration of the overall synergy plan and the recent development around Showmax, we are pleased to announce that more than €120 million of the €220 million free cash flow synergies expected for 2026 have already been secured. This is a significant increase versus the last figure we communicated a little more than a month ago, and it provides us great confidence that we will achieve our target for this year. After the discipline on cost, moving on to discipline on capital. On the debt side, we successfully completed three refinancing operations in 2026. A key takeaway is that our Eurobond and the banking facilities were both highly oversubscribed. and so we managed to obtain attractive pricing conditions, which not only enable us to lower our average cost of funding across the group, but also reflect the underlying strength of the business. These refinancing operations were completed in large part to pay for the acquisition of MultiChoice, increasing our net debt from 0.59x in 2024 to 2.75x in 2025. Our aim is to remain below 3.0x in the near future to maintain a sound and healthy balance sheet. Turning now to the equity side, our focus is to invest where we can have the best returns. From Ethiopia in 2024 to Canal Olympia and Vietnam in 2025 and Showmax in 2026, we now have a strong track record on discounting activities that are not performing up to our standards. One of our core focus for the years to come is to continue reviewing our portfolio of activities to increase the overall profitability of the group. In addition to monitoring the performance of our activities, we will continue to build strong partnerships with other players in the entertainment and media industry across content and distribution to optimize investment and again, make sure every euro invested is really worth it. Another significant part of our capital allocation strategy is to distribute dividends to our shareholders. We are pleased to announce an increase of the dividend of plus 10% this year compared to last year, 2.2 euro cents subject to shareholder approval at the general meeting on May 29th. Finally, an important component of our strategy is to improve the liquidity of our shares with the new investors. In that respect, I am pleased to confirm that we are aiming at completing a secondary listing on the GSE, the Johannesburg Stock Exchange, by end of Q2 2026. And so, Canal+, will become the first French company to be listed in South Africa.

Thank you, Amandine. To summarize before we move on to Q&A, we had a successful 2025 at Canal+. We exceeded our guidance and have a positive outlook for the year ahead. It was a challenging year for MultiChoice. We are now shifting this organization and resources to getting back to growth in English and Portuguese-speaking Africa. We have updated our synergy implementation plan to accelerate, and we are pleased to have already secured half of what we were aiming for in 2026. In the medium term for the group, we expect a minimum of 850 million euros in adjusted EBIT and a minimum of over 500 million euros in free cash flow. And as outlined, we will get there by focusing on four priorities, turning around multi-choice, increasing profitability in Europe, further enhancing our entertainment platform, and of course, underpinning it all, having a disciplined approach to cost and capital. Now we'll take your questions.

Ladies and gentlemen, we will now begin the question and answer session. If you have dialed into the call and would like to ask a question, please signal by pressing star one. Before asking your question, please ensure your line is clear and that you're speaking from a quiet environment. We'll pause for a moment to assemble the queue. Your first question comes from Nicholas Lange from BNP Paribas. Your line is open.

Yes, hello. Good morning, everyone. I hope you can hear me well. We can. Thank you. A couple of questions. Maybe I will go one by one, if it's okay with you. The first one on Showmax. So can you tell us a bit more about the terms of the discontinuation? What happened to the financial commitment MCG had with Comcast? And what's the cash effect in 26 and subsequent years related to this discontinuation?

Do you want us to answer now? Yeah, maybe let's go one by one. Hello, this is Maxime speaking. We can't really disclose the terms, as you can imagine. This is a confidential agreement with Comcast. But we are very happy with the terms, which enabled us to generate synergies quicker than we initially expected. As you know, this was a severely loss-making activity on which we saw no recovery, no matter what was done. And so we very quickly found an agreement with Comcast that we needed to end this as soon as possible, and we needed to end the financial commitments to this as soon as possible. And now, of course, the priority is to make sure that the people who have chosen this offer, and David can answer more specifically than I, end up on something that is an even stronger experience going forward.

Yes, just to complement, maybe we have an obvious overlap of technology over the top in Africa today. So we have the Pico technology, we have the Pico technology of Comcast, but also we have the technology of the group. But we already have like two platforms operating on the Showmax footprint, which were Showmax, but also DSTV Stream. And we are busy as we speak to make sure that all features and content that was available on Showmax will be available on DSTV Stream in order for the customers to have another choice.

And I think maybe going forward, I also want to highlight the fact that we now own this activity 100%. And we expect a lot from this activity and OTT in general.

Okay, thank you. Second question on Showmax. Can you tell us what was the level of operating loss in 2025 and how much of it is fixed versus viable? So the question is how much of the losses is truly gone once the service is terminated?

I don't know if we want to disclose that it was in excess of 100 million. It is close to that in terms of synergies. um it's not that uh it's not trivial to calculate because some of the of course some of the resources allocated through showmac were actually mutualized some of the content is available on other platforms than showmax for example But you get a sense, I think, with the numbers I gave you.

So just to be clear on what Maxime was saying, stopping the Showmax activity, we won't have 100% gain in 2026 and 2027 due to the stop because we will still have some costs, especially on content that were mutualized between Showmax on one side and the military on the other side.

But this content provides value to ourselves.

And as David was mentioning, it will be available on the multi choice.

Yeah, OK, OK. Now on the boost plan, the 100 million you plan to invest at MCG in 26. Should we consider it as a one off expense in 26 or you will have to sustain that effort for the coming years?

So it's a sustained effort because we The platform needs to get back to growth and to improve its sales engine. So we are re-accelerating very quickly the sales engine to get back to numbers that were already in place back in 2022. So it's a get back to growth and get back to a commercial engine power that used to be the one of multi-choice just a few years ago.

But most of it is variable. 90% of it is variable. So if you succeed in reboosting the engine, like David just said, you get the revenues. So this is something that David has done a number of times, and he is very clear on the ROI of these investments.

OK, super. And maybe one last quick question on the Google partnership you announced this morning. So on the production side, what's the current use of generative AI tools? StudioKanal in the production, and how the new partnership with Google will accelerate the deployment of those tools? And what do you think are the mid- to long-term implications for StudioKanal's profitability? Meaning, do you expect to let most of the gain drop through the bottom line, or you will be more inclined to reinvest most of the gains?

Hi, I think in terms of AI tools for production, it's definitely something that we're taking very seriously, enabling us to gain both, especially in terms of time and obviously time and productivity. So it basically means that it will allow us to continue to follow our ambitious editorial strategy using tools that will allow us basically to put more money on screen, at least make it look like there's more money on screen, thanks to those AI tools. Obviously, as I alluded to, we definitely know how to make movies, at a budget, at a budget that's a lot lower than a lot of the American studios. And obviously using these tools is only going to enable us to keep driving that strategy and making those ambitious movies with the tools available and respecting, obviously, the parameters of our industry, which is obviously really important for us that we're working with the talent as well to make sure that everybody is on board when we're working with Google. in OpenAI.

But maybe just to be clear, the deal that we just had with Google and OpenAI, it's not just only on StudioKanal, it's more wide than that. It's really also focused on the KanalPlus app and using those partnerships to get the best of the large set of content that we have. We have this aggregation strategy, so we have a lot of content in the KanalPlus app, and the objective is to make sure that our subscriber can get access to this content. And so these deals are going to enable us to provide data, additional data based on the content. And so to improve the recommendation and the search engine within the Canal Plus app. So it's also going to be a huge value for our subscribers.

Mostly.

Okay.

Thank you very much.

Your next question comes from the line of Connor O'Shea from Kepler Chevron. Your line is open.

Yes. Good morning, everybody. Thanks for taking my questions. Three questions from my side as well. First question just on Canal Plus Africa margins in 2025. I think they were down year on year. Can you give a little bit of color on that? And also on Studio Canal margins, I think they were up despite the decline in revenues, so just to understand what's happening there. Then the second question on, Maxime, your comments on the variable element within 100 million extra costs in multi-choice. I think I saw reference to 1,000 new hires in multi-choice on the sales side. that seems to suggest a slightly higher fixed cost element within that, but if you could just maybe elaborate a little bit more on the variable component and that, or are those salespeople paid on commission, or how does it work? And then the third point, just to come back on the closure of Showmax and so on, just to be clear about what your streaming strategy is in Africa in the multi-choice footprint. Are you saying that you're reverting to mainly sort of a satellite approach because of the infrastructure in those markets, or are you pursuing sort of a dual approach in that, just to understand what your strategy is post-closure of Showmax? Thank you.

Recap margin is decreasing because of the inflation of some cost of content that we think is non structural.

But we are still at more than 20% margin at 20.8, which is best practice on pay TV business. So it's still a very profitable business.

Studio Canal has completely improved the way we function and she's able uh to uh increase the margin even when uh we don't have an incredible year because last year was incredible 24 was incredible 25 was we expected more normative uh you know how it is in the movie business uh you don't have a paddington or back to black or brujer jones every year unfortunately but we knew that and the model now is very resilient uh thanks to a number of things that she has described the pre-financing uh the cost control and the incredible library which enables to generate a very constant revenue streams And so we're very, very happy to show that no matter what, she delivers on the EBITDA adjusted EBIT. It's also held by Dailymotion in that segment because we mentioned that Dailymotion is close to now breaking even basically with a 20% increase in revenues. The 1,000 hires are mostly commissioned. Yes, this is the mostly variable. This is what we intend to do. I mean, we are set by the fact that these costs need to be variable. Because again, we want to, you know, this should generate revenues, and we don't want to add, we already think there is an issue of structural high cost at multi choice. So the idea is not to add a fixed cost, the idea is to lower fixed cost. On OTT, no, no, we have a very, very ambitious strategy. And you look at our strategy in in Europe, of course, Europe is more mature than Africa today, with broadband and high speed penetration and number of things, and the cost of data. But South Africa, and David can speak to this again better than I can, but South Africa is much more mature than some other African countries. It's actually in some ways closer to Europe in that respect. So we will, and I really want to insist on that, we will develop a very ambitious strategy. ott strategy uh but we will just do it with our platform that we own 100 uh proprietary platform uh and you look at what we've done uh in europe and you have a pretty good idea of what we will be doing in in africa now every today every one of our subscriber uh in in france or in poland let's take the example of france we have still quite a substantial number of subscribers on dth every one of them goes on our app every day so our dth subs actually are on the tt as well and christophe has done that very well we don't have any you know decay rate like we've seen with the cable industry in the us where we see them losing cable uh subscribers going to netflix we don't have that because our dth subs all of them have access to our ott platform and that's the strategy david has already rolled out in french-speaking africa and will be running out in the multi-choice territories

Okay, very clear. Many thanks.

Your next question comes from the line of Ben Shelley from UBS. Your line is open.

Hi, thanks for taking my questions. I've got three. First of all, could you expand a bit more on the timing of your medium-term outlook? Is it right to think about that being 2028 or more towards the end of this decade? And then a couple of more detailed questions on the cash flow. Can you give us some visibility on what minority dividends will be for the combined group in 2026? And likewise, can you give us some visibility on what cash exceptional costs will be for the combined group in 2026? Thank you.

On the first question regarding the mid-term, yes, we were more mid-term, like around three years, so 28, 29, around that, so before the end of the decade, to answer your question. Regarding cash flow, it's a bit early to provide some figures regarding the dividend 2026, but on the exceptional item that we will have, part of it is going to be the payment of the VAT settlement that we signed in December 2025, We announced that we will have to pay 363 million euros. We don't have a clear schedule yet with the French tax authorities, but we plan to pay that in 26 and 27. Probably a large part of it will be paid in 26, but we don't have a view actually, to be honest, on when we will have to pay. So it's going to be less than 365 probably, but we don't know yet. What we will have also an exceptional cost is going to be the implementation cost of the multi-choice plan and the synergies that we presented. You saw that in the slide. We believe that to implement these synergies and the synergies acceleration, we will have to spend between 70 and 100 million euros in 2025. And this is depending to the pace and the condition of the voluntary plan that we are going to launch. And we will have some remaining payment of the lay-off plan that we had in France. We started it in 2025. We paid part of it second semester of 2025, but we still have a few tens of million to pay in 26. And these are the main items.

Thanks very much, guys. Very clear.

Your next question comes from Adrian de Saint-Hilaire from Bank of America. Your line is open.

Yep. Thank you. Good morning, everyone. I've got maybe one question for David and one question for Maxime, I suspect. Or maybe you can take them both combined. On the boost plan of 100 billion euros, I mean, I know it's a difficult one. What's the degree of confidence you have that this is enough to fix the situation around subscriber trends? And maybe Maxime, because you have, of course, experience from doing the French turnaround about 10, 15 years ago. I'm just wondering from your perspective, to what extent the multi-choice situation today feels similar or different to what you had in France about 10 years ago?

Maybe I can take the first one. The confidence is super high, and I'll tell you why. If you look at the numbers between 2013 and 2020, 2023 even, like a number of sales and the power engine of sales of multi-choice was at full speed. For cash pressure purpose, especially investment in the Showmax that we have switched off and some others, the company has to decrease its investment into commercials and sales. And so we are just getting back to normal, if I may say so. And we already have some effect as we speak. So it's just getting back to what used to be back in between 2020 and 2022. And so we are super confident to answer your clear your question to our ability to return to the level of commercial power that used to be just three years ago.

Sorry, I was joking this morning that the situation seemed very, very similar to what we had in France. That's another reason we're confident. We know how to do this. The dynamics are very strong. The market is very strong. And David needs to rebuild what he has built already in French speaking Africa with the retailers and we know how to do this. Thank you. Another element that we know how to do is that if you look at the multi-choice numbers, and we really were very transparent on that, a big part of it is cost of content inflation. We also know how to deal with that.

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yes good morning also first question just to be sure so on the 100 million investment in terms of commercial activities when you said a variable so just to be sure so you said 90 percent variable does that mean that if the recover don't take place which i don't wish that that means that the cost will be 10 only that's my first question Second question on the inflation in terms of cost at the multi-choice level for 2026. What is it exactly? Is it linked to currency or to a structural additional investment? And if that's the case, when do you plan to reverse in the median term if it reverses? And lastly, so you said organic revenue guidance should be slightly up. Could you give a bit more details between France, this is for Europe, so France, Poland, and the rest of Europe? Thank you.

Not sure about the last one. I'll let Amandine deal with that one. Yes, you're right on the first point. If sales don't materialize, it will be 10. Correct. Confirmed. uh on the cost of content uh it's not structural it's not additional content it's just negotiations of current content with inflation uh what we call elevator inflation like a yearly inflation which amounted to 100 million in 26 we don't believe this is structural at all

and regarding the organic revenue growth especially in the european segment actually we have different dynamics if you are looking at france we expect to have some decrease in the french revenues this is due to the change of offer that we had to do due to the new v80 settlement that we signed in december we had to change slightly the offers and it will have a slight impact on on the revenues we will have also a decrease in the former m7 perimeter as you know the offer in in those territories is a bit similar to what we had for the french among the table canal sat 10 years ago so it's mainly a multi-channel software and so we are currently completely changing the strategy in those territories. This is what Christophe talked about earlier. But on the short term, it will create a decrease in the revenues. So overall, on the Europe segment, we expect a decrease in 2026, but it should be offset by an increase in the African one on the former canal plus perimeter, so French-speaking Africa and GVA. And Myanmar also is performing very well, to be honest. It's small, but working very well.

Just want to come back on the content. So these are inflations that are in the contracts. We have to renegotiate the contracts. So some will take place maybe next year, some in the year after that. We have to look in detail at the contracts. But of course, as you know, we expect a lot of improvements in the terms with our new scale. And we have already proven that in the contracts we've negotiated. You may have noticed that we announced an acceleration of synergies. And not only the ones we plan to achieve in this year, but the ones we have already secured, which amount to 120 million already. And part of this is already content negotiations.

Thank you.

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Hello, thank you for taking my question. Just one remaining. Could you give us a range of the subscriber base assumption you have for MCG medium term on which you made your guidance for within you and EBITDA possible?

I don't know if we want to answer that one. No, I don't think we can.

What we can say is that we expect to get back to growth and to have the end of the decrease in 2026.

I think the other thing we can say is I think we understand you. We have been conservative because turning around the business, you mentioned France earlier, we know how to do it, but the speed it takes, you don't necessarily know. So we have been conservative and I think we've quite clearly said, and I will say it again, that the numbers we've given for the medium term outlook are a bare minimum as far as we're concerned. And from there, we intend to continue to grow to the long term. So this is the starting of point 28, and we expect it to be higher than the numbers that we've shared with you this morning. But there's a lot of uncertainties, and as you know, we don't want to commit to anything we're not absolutely positive we will deliver on.

Okay, thank you. Just a follow-up on the subscriber base for MCG. Are you confident that you can come back to growth for this subscriber base before year-end 26th?

Most likely.

Thank you. But we come from 1.5 million loss every year. So it's a lot.

It's a lot.

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Thank you.

Thank you very much. Thank you all.