Vivendi’s impressive growth: A closer look at Canal+ and beyond

Vivendi, the powerhouse behind the French pay TV giant Canal+ Group, has reported a remarkable surge in its 2024 first-half revenues, reaching an impressive €9.05 billion ($9.8 billion). This marks a 5.8% increase compared to the previous year. The media conglomerate also experienced a staggering 98.4% spike in second-quarter revenues, showcasing its robust performance and strategic growth.

The driving forces behind Vivendi’s success

Lagardère and Canal+ Group: Key contributors

The acquisition of Lagardère, a major player in media, publishing, and travel retail, has significantly bolstered Vivendi’s revenues. Alongside Canal+ Group, these entities have been instrumental in driving the company’s financial success. Vivendi’s EBITA (Earnings Before Interest, Taxes, and Amortization) soared to $671 million, a 39.3% increase compared to the first half of 2023. This growth was fueled by the consolidation of Lagardère and the expansion of Havas. At constant currency and perimeter, EBITA saw a 13.5% rise, while adjusted net income reached $357 million.

Canal+ Group’s impressive performance

Canal+ Group’s revenues climbed by 4.6% to $3.2 billion, driven by strong TV operations in mainland France and overseas. The film and TV division, Studiocanal, also saw an 8.6% increase in revenues, thanks in part to the success of the Amy Winehouse biopic, Back to Black, which was released on April 24 and has garnered global acclaim.

Strategic expansions and acquisitions

Expanding influence in Scandinavia and Africa

Under the leadership of CEO and chairman Maxime Saada, Canal+ has significantly increased its stake in the Scandinavian pay TV banner Viaplay to 29.33%, making it the largest shareholder. Additionally, Canal+ has acquired a stake in the leading Senegalese production company Marodi TV and has made a tender offer to buy the African service MultiChoice Groups.

Strengthening presence in Asia

Asia is also a key focus for Canal+’s international expansion plans. The company has increased its stake in the leading Asian OTT service Viu to 36.8% and aims to raise it to 51%, further solidifying its presence in the region.

Domestic acquisitions and new initiatives

Back in France, Canal+ Group has acquired OCS, a pay-TV package, and Orange Studio, the film and series co-production subsidiary. Among the new editorial developments is the creation of Studiocanal Stories, a new label dedicated to adapting literary works into films and TV series in France and several European countries. Canal+ Group continues to forge partnerships with major U.S. players, including Warner Bros. Discovery, which signed a distribution agreement with the French banner for its standalone streaming service Max.

Vivendi’s strategic restructuring

Plans to split into three entities

Vivendi’s management board has provided an update on the group’s plan to split into three separate entities and list assets. Under the current plans, Canal+ will be listed on the London Stock Exchange, Havas on the Euronext Amsterdam, and an entity encompassing publishing and distribution, including Louis Hachette Group, on the Euronext Growth Paris. Vivendi will remain listed on Euronext Paris.

Maintaining leadership and operational teams

Vivendi has assured that Canal+ and Havas will retain their leadership and operational teams at their Paris headquarters. They will also remain French tax residents for corporate income tax purposes.

Reflections from Vivendi’s leadership

Yannick Bolloré, chairman of Vivendi’s Supervisory Board, highlighted the group’s half-year results, stating that they were “driven by our three main businesses, which contributed to organic revenue growth of nearly 6% and organic EBITA growth of 13.5%.”

Arnaud de Puyfontaine, Vivendi CEO, emphasized the dynamism of the company’s various businesses, noting their strength in organic growth and acquisitions, as well as their ability to adapt to changing environments and customer expectations. He affirmed that the group is currently “strengthening its international positions.”

A bright future for Vivendi

Vivendi’s impressive financial performance and strategic expansions underscore its position as a leading media conglomerate. With continued growth and innovation, the company is well-positioned to navigate the evolving media landscape and capitalize on new opportunities.

For cinema and TV series enthusiasts, the success of Canal+ and its subsidiaries promises a wealth of exciting content and new ventures. From the acclaimed Back to Black to the innovative Studiocanal Stories, there is much to look forward to in the world of entertainment.

As Vivendi continues to expand its global footprint, it remains a key player to watch in the media industry, driving growth and delivering compelling content to audiences worldwide.