In another sign of the UK market’s recent rehabilitation, French media giant Vivendi (VIV:EPA) has announced it will list its Canal+ TV and film operation in London as part of a broader break-up of the business.

The move may raise some eyebrows given the lack of any obvious ties between Canal+ and these shores. With the departure of Sky, its main listed counterparts will be ITV (ITV) and its cousin from north of the border STV (STVG).

Vivendi has not committed to anything yet and based on what it’s said so far it could be some time before Canal+ lists. The current thinking is a decision could be taken at the end of October 2024 with the aim of putting it to a vote by December where it would need support from a two-thirds majority of shareholders.

Because Vivendi is itself a public company there is at least a decent amount of information out there for prospective investors to prime themselves on Canal+ as a business.

In the first half of 2024 it posted revenue of €3.1 billion, up 4.6% year-on-year, and flat EBITA (earnings before interest, tax and amortisation) of €337 million. This adds up to a 10.9% EBITA margin, whereas in the six months to 30 June ITV generated adjusted EBITA of £212 million against external revenue of £1.6 billion for a 13.3% EBITA margin.

Set against the apparently lower level of profitability, Canal+ is more geographically diversified than ITV and also has its Studio Canal film operation which enjoyed 8.6% revenue growth in the first six months of the year. It is also expected to be largely free of debt when it floats.

Two key components of the firm’s strategy are to continue developing the business internationally – two-thirds of its subscribers are from outside France and growth from international operations was roughly 4.2% in the first half – and improving its content offering.

To the former end, Canal+ recently agreed to buy MultiChoice, Africa’s largest pay-TV operator, in a $2.9 billion deal, building on its investment in Asian streamer Viu and Scandinavian firm Viaplay.

On the content side, it unveiled a distribution agreement with Warner Bros Discovery in May as well as launching Studiocanal Stories – a new label focused on literary adaptations into films and TV series.

Notably, Vivendi is talking about a secondary listing for Canal+ in Johannesburg, alongside its London quote, linked to the deal for MultiChoice. The group is at pains to point out the decision-making centre for Canal+ would remain in France along with its operational teams, with its tax domicile also remaining across the Channel.

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