Canal+ SA (CAN) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Canal+ H1 26 results. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session through the phone lines and instructions will follow at that time. I would like to remind all participants that this call is being recorded. I will now hand over to the Canal+ CEO, Maxime Saada, to open the presentation. Please go ahead.

Good morning, everyone, and thank you for joining us today. I am Maxime Saada, CEO of Canal+, and I am joined today by Amandine Ferre, CFO and Chief ESG Officer.

Good morning.

We are delighted to be with you to present the Canal+ results for the first half of 2026. Let me now walk you through today's agenda. As you know, this is our first half year with MultiChoice as a part of the group. It's integration and more significantly, its turnaround plan have been a key focus for the management team. So in addition to our results, we will update you on our progress at MultiChoice. We'll also cover synergies and Amandine will take you through our financial results and outlook. Let's begin with a reminder of what Canal+ looks like today. Canal+ is a global media and entertainment company anchored in Europe and Africa and the market leader in more than 40 countries. We serve more than 40 million subscribers. And last year, the combined group generated EUR 8.7 billion of revenue. The other key figure here is revenue generated from subscriptions. 85% of our revenues are recurring and predictable because we have loyal subscribers. Unlike many of our competitors, Canal+ is a leader across the entire media value chain. As a producer through our in-house studios, STUDIOCANAL, we own global IPs such as Paddington, [ Project Jones ], Evil Dead and many others. STUDIOCANAL produces and distributes 100 films and 40 series each year, and our library of movies is the largest and most prestigious outside of the United States. Our own high-quality content is the foundation of our offer and a key driver of subscriber engagement and loyalty. And on top of that, as an aggregator, we partner with the world's biggest film studios and streamers to provide our subscribers with all the content they want to watch in one place, on one platform. And of course, Canal+ remains the home of sports, we are the #1 broadcaster globally of the UEFA Champions League, the Premier League, Formula 1 and Moto GP. We also hold the rights that matter most locally, like the Premier Soccer League in South Africa. The final part of the value chain is distribution. Our app is available on every kind of device from smart TVs to mobiles. And Canal+ telecom offers fiber connectivity in 15 highly populated cities across 10 countries in Africa and in French overseas. With that overview of the business in mind, let me now turn to the highlights of the first half of 2026. I am pleased to say we have published a strong set of results, and we are executing our strategy as planned. Amandine Ferre will provide more details on the numbers in a moment. But in short, we are well on track to meet our full year 2026 guidance. In the first half of 2026, revenue increased by 40% year-on-year to EUR 4.3 billion reflecting our increased scale with MultiChoice. On a like-for-like basis, excluding MultiChoice, revenue was up 1.4%. Profitability was even more encouraging. Adjusted EBIT before exceptional items reached EUR 433 million, up 68% year-on-year and up 13% excluding MultiChoice. And we converted that into very strong cash generation. with EUR 414 million of free cash flow before exceptional items, EUR 254 million, excluding MultiChoice. Second, the MultiChoice turnaround plan is underway. I'll come back to this in more detail, but the key point is we have identified every lever available, and we are now pulling those levers across content, technology, pricing and distribution. As you know, MultiChoice has been losing subscribers. And while the base is broadly flat versus last year, it is too early to say we have achieved the turnaround. We delivered a commercially successful World Cup and we should be satisfied. But we would not have been able to deliver these results without the World Cup. Last but not least, our accelerated synergies plan is on track, and we expect to hit our EUR 250 million target for the year. And in fact, synergies already contributed EUR 120 million to our adjusted EBIT at the half year. Overall then, a very positive 6 months. Now content. Today's strong results were only possible because we have consistently made the right choices on content investments, our productions, acquisitions and partnerships. Over the last 6 months, we have continued to make real progress. First, we reinforced our position as the home of entertainment. In sport, after extending our UEFA rights in France last year, we have now secured those rights in Poland, Austria and Switzerland through to 2031. And in a significant step for the group, we acquired exclusive rights to all UEFA club competitions in Belgium from 2027. We will launch in Belgium next year. We also secured the rights to the Americas Cup across Europe and Africa and key local rights, which I will cover in a moment. In cinema, yesterday, we announced the extension of our agreement with French cinema organizations. This agreement, which we extended until 2032, ensures that only Canal+ can broadcast movies as soon as 6 months after the theatrical release. Second, we keep building our franchise factory and our slates. Paddington remains a powerful global franchise for us. The fourth film will be written by the [ corridors of VIP ] and the thick of it. And following the huge success of the musical in London, we are taking Paddington to Broadway. We are also bringing back another iconic idle with a remake of Escape from New York by Zach [ Schneider ] in the pipeline. Escape New York is in our library of movies, obviously. Third, you will have seen we announced a joint venture with Hachette Live to support our focus on turning best-selling books into premium screen content, combining assets, wealth of IP with STUDIOCANAL's production capabilities. Hachette is the third largest book publishing company in the world. These [ Sercan ]offer proof of our popular book adaptations can be. Our upcoming adaptation of [ Matt Hagg ], The Midnight Library was the most wanted film at the festival and landed the biggest film deal across all studios. We also have other adaptations in the works, including The Divorce, the new novel by #1 New York Times best-selling author, Freida McFadden, rider of the house made a film we distributed in Australia with great success. Having covered the headline results and our content momentum, I would now like to go deeper into the MultiChoice turnaround. This is one of the most important stories of the half. So let me show you the concrete actions we have taken on the ground across content, pricing, distribution and subscriber acquisition. First, as we said at full year, and it's always the case at Canal+, we focus on content. The difference now is that we do so from a position of greater scale and strength. In the first half, we secured a series of major sports rights that will ensure the super sport lineup continues to be as compelling as ever. We locked in the Premier Soccer League for the long term in South Africa. It is the most watched local competition in the region. On top of that, we secured the men's and women's rugby World Cups in '27 and '29 and as well as the Vodacom United Rugby Championship. And we are ramping up movie and series production in Africa investing in distinctively African stories, [ trusted ] our first major South African production in the [ road home ] and a screen adaptation of the best-selling book Americana. Personally, I'm looking forward to the Heist of Benin. I will not spoil a plot, but you can think of it as Oceans 11 with now African twist. This is just the beginning. Together, this combination of world-class sport and premium local content will ensure our offering stands out. Of course, building the best content offer is just part of it. We then need to showcase that content to attract customers and create engagement. This is one thing we really know how to do at Canal+. For the World Cup, we maximize our campaign platform. Sleep Can Wait. TV ads, social media. We make sure we reach our target audience everywhere. We had World Cup rights. Working with Idris Elba certainly helped. We took a similar approach with the launch of Novelas+, different target audience, same principle, put the full weight of our marketing machine behind the best new content. I will come to the impact of this in a moment. So we have the content and the marketing machine that promotes it Next, we assess everything that will discourage potential customers from signing up. Reducing these barriers to entry is another important component of our acquisition engine. This work is just starting. Thanks to our new scale, we can reach broader agreements with suppliers, and we negotiate from a position of greater strength. And when we make savings, we can transfer part of those savings to our customers. In Kenya, for example, the price new customers pay for equipment has been reduced by 22% in the last 3 months. The next key component in that engine is our sales network. The more points of sales we have the more subscriber acquisition opportunities we create. In our strategic update in March, we highlighted the need to develop our distribution network to shift the focus of our business much towards sales. Since that update, we have broadened our market coverage and accessibility by more than 15% across MultiChoice markets. Focusing on Uganda, for example, we have increased the size of our point-of-sale network by 17% since March. As with all parts of our turnaround plan, this is just the beginning of what we will do. All of those initiatives, improving and promoting our content offer, reducing entry costs and expanding our distribution networks are reigniting our commercial engine, and we already have proof of the impact this can have. In MultiChoice countries, we delivered a 40% increase in new subscribers compared to H1 '25. And in South Africa, in June, we recorded the highest level of new subscriber [ uptake ] in a decade. This is a great example of what we can deliver when we put the right content in front of consumers with the right commercial process and the right price. Of course, the World Cup is a significant one-off event, and we will need to work hard to retain as many of our new subscribers as we can with we know how to do that. That covers our results headlines and early progress on the MultiChoice turnaround. I will now turn to synergies. I am pleased to say we are well on track to achieve our 2026 cost synergies target. This chart shows group adjusted EBIT cost synergies measured against our 2025 cost baseline and before implementation costs. As you can see, halfway through the year, we are halfway there. So far, the entire EUR 120 million P&L impact has been realized at MultiChoice. But other business units will be impacted in H2. A number of key initiatives are already implemented and delivering. We have discontinued the [ Showmax ] streaming service. We have optimized and renegotiated our content costs. We have carried out a voluntary severance plan at MultiChoice. And we have renegotiated hardware prices benefiting, as I mentioned before, from the group's new combined scale. Beyond these initiatives, several more are ongoing. We are optimizing our broadcasting infrastructure. renegotiating contracts with our technology and other service providers and restructuring [indiscernible], MultiChoice's technology and cybersecurity subsidiary. Taken together, these actions give us good visibility and confidence we will deliver the EUR 250 million full year cost synergies target and keep us on track for our 2030 target. With the turnaround and the synergies plan now covered, I will hand over to Amandine Ferre, who will take you through our first half financial results.

Thank you, Maxime. To properly assess our first half performance, there are two important points to keep in mind. First, these figures are the results of structural initiatives we have implemented to improve our business. As Maxime explained, the cost synergies resulting from the acquisition of MultiChoice are gaining traction. We also continue to work not only on the cost efficiency measure we launched, especially in Europe, but also on multiple initiatives to improve cash conversion. Second, it's fair to say we have also benefited in H1 from tailwinds that will not replicate in H2. So [indiscernible],for instance, had a strong impact on our subscriber base in Africa and will, of course, not be there at the end of the year. Similarly, we were helped by positive seasonality on costs, especially on content and favorable phasing of payments. Finally, our [ Boost ] plan on the MultiChoice perimeter has just only started. We are still limited costs so far, but we are yet to see the fully fledged impact on the P&L over time. Moving now on H1 figures, starting with our subscriber base. As we say at full year, our base peak at over 42 million end of 2025 as a result of the usual end of year festive season and the positive impact of the [ Avcon ] tournament. At half year, we are above 41 million, an increase of plus 8% versus half year '25 within what we have seen as a strong growth in high-value retail sales, especially in Africa and in France, which I will come back in a few moments. We saw very strong growth in French-speaking Africa, thanks to our compelling content lineup where unscripted and local series have been very popular. Finally, as Maxime outlined, our successful execution of the World Cup had a very positive impact in Africa and help to keep the MultiChoice base broadly stable. Our focus is now on retaining as many of our subscribers as possible. But similar to Avcon, our subscriber base will have temporary peak during the World Cup. Now on the revenues. This is where you can really see the impact of the MultiChoice acquisition on our scale as our reported revenue is up by 40% versus last year. On a like-for-like basis, if we compare restated combined revenue, we are up 1.4% with the increase of Canal+ historical perimeter compensating for the decrease in MultiChoice revenue. The scope effect here refers mainly to the acquisition of [indiscernible], the Italian producer and distributor we acquired earlier this year. Before going into each segment individually, let me break down the variation of our adjusted EBIT before exceptional items between H1 '25 and H1 '26. We started from Vietnam -- and excluding MultiChoice, the group adjusted EBIT was EUR 257 million in June 25. When we include the contribution of MultiChoice from [indiscernible], we reach EUR 363 million for H1 '25. The [indiscernible] have been stocked as a result of the discontinuation, and this was a key achievement in H1. Moving to the performance of '26, I am pleased to announce that almost all of our segments, including MultiChoice choice, have seen an increase in profitability. This very solid performance across the group led to another increase of adjusted EBIT of 68%, enabling us to reach EUR 433 million in the first 6 months of 2026. I I will now focus on each of our 3 segments: Europe, Africa and Asia, and content production, distribution and other. Starting with Europe. As I said, we have seen a significant increase in subscribers in Europe, driven by the strong performance in France across both retail and wholesale. That was partially offset by the divestment of a satellite subscriber base in Hungary in '25, as mentioned at Q1. On a like-for-like basis, revenue is down 1.5%, driven by the closure of the CA channel in France. [ CA ] closed on the first of March last year with CA contributing to 2 months in '25. Our divestment in Hungary also had a negative impact on revenues. But [ CI ] and the DTH base in Longer had positive impact on margin. On profitability, we had an excellent 6 months with our margin rate standing at 6% at half year compared to 4.9% last year. This increase proves the effectiveness of our cost efficiency initiatives, although some are positive seasonality effect, especially on content cost and that will partially reverse in H2. It's also worth noting that in H2, we will start to invest in our business in Central Europe to implement the strategy we presented at the full-year announcement, especially in Belgium to ensure a successful start of our activity there. We expect the margin rate at the segment at the end of the year to land close to last year. Moving now to Africa and Asia, where the positive impact of the World Cup is most notable as a key driver of the 7% increase in our subscriber base compared to H1 '25. While revenue in this segment is broadly flat, our adjusted EBIT has increased by 21% compared to H1 '25, driven by the strong performance of the [ canister meter ] and the implementation of the cost synergies at MultiChoice. I will now unpack the dynamic of the two parameters severity, Staying at the African-Asian segment, but excluding MultiChoice. So the [indiscernible] in Africa and Asia. Our subscriber base increased by 17%, up to 9.4 million. This increase driven by our compelling content lineup and the continuous improvement of our commercial and distribution model led to an increase in like-for-like revenues of 12%. We have also seen double-digit revenue growth at Canal+ Telecom Africa as a result of its strong commercial performance. Profitability of the segment, including MultiChoice, has also improved with adjusted EBIT up 9%, driven by the strong growth of our Pay-TV and fiber operation and with amazing rate stable at very high level as you can see. Now focusing on MultiChoice. As a reminder, the benefit of cost synergies is one of the two primary reasons to acquire multi-choice, the other one being to capture the African growth opportunity. And as you can see, we are already seeing the positive impact of the synergies with the EUR 120 million savings driving the increase in the MultiChoice adjusted EBIT. The ShowMax closure represent EUR 52 million, with the remaining EUR [ 70 ] million generated by the other initiatives, Maxime already mentioned, including savings on content cost and take on negotiation and the first impact of the voluntary severance plan. Including the impact of the top line decrease and the cost inflation totaling around minus EUR 35 million, we get to EUR 143 million adjusted EBIT at the end of June '26. Staying with MultiChoice, here, you can see the significant positive impact of our content line together with the initiatives we have been implementing as part of the Boost plan. This has enabled us to maintain a broadly flat subscriber base compared to '25. This is an early sign of improvement as a year before the subscriber base has declined by 10% between H1 [ '24 ] and H2 2025 like it did with Avon, our subscriber base will have peaked during the World Cup. It's important to note that the main effect of our growth initiatives are expected to continue to ramp up in H2 '26 and through '27 and '28. Therefore, revenue still declined 3.4% on a like-for-like basis, mainly driven by the reduced equipment revenues. Subscriber revenues only declined by close to 1%, demonstrating signs that the situation is stabilizing. As I have just explained, adjusted EBIT increased by 34%, mainly as a result of cost synergies. Finally, let's look at the content production, distribution and other segment, where revenue increased by 10%. And STUDIOCANAL had a strong 6 months at with local breakout hits, including Buru, the House made, Extra Rost and Woodworker2. This positive momentum continued in both series production and catalog, reinforced by the acquisition of [indiscernible] we announced earlier this year. As to Daily Motion, it continues to deliver dynamic growth with its expansion of its commercial reach. The slight decline in profitability year-on-year is due to front-end loaded cost, and we expect the margin to improve in H2. Now turning to our P&L. After removing the discontinued ShowMax in Vietnam moderation, earnings of the combined group improved significantly. And there are a few points to draw your attention to. The MultiChoice restructuring costs were offset by a number of positive one-offs, including the MultiChoice PPA and the Daily Motion-Google litigation settlement for EUR 29 million. Cost of financing has been reduced by refinancing titrate debt and the acquisition debt on more favorable terms. We had a minus EUR 87 million noncash impact due to unfavorable exchange rate against [indiscernible]. And we had a higher tax charge compared to H1 '25 due to our increased profit before tax. Our effective tax rate stand at 33% on Canal+ perimeter, down from 38% last year and 76% for MultiChoice. We'll continue to focus on improving that. Looking now at our CFFO before exceptional items. Thanks to our ongoing cash optimization initiatives and our favorable funding of payment, especially on MultiChoice; we have generated EUR 559 million of CFFO and a 129% cash conversion rate. Of this EUR 559 million, the historical perimeter of Canal+ contribute to EUR 335 million, while MultiChoice delivered EUR 225 million. Thanks to that high level of CFFO, our free cash flow before exceptional items reached EUR 414 million. To go into the detail, we benefit from a positive one-off of EUR 25 million in cash tax as a result of the change in MultiChoice financial year and from the improved condition of our refinancing, as I already mentioned. We also paid EUR 336 million in exceptional items, including a EUR 275 million payment linked to the settlement of the French litigation. It will be complex by a final EUR 89 million payment that we will make in H2. Despite this exceptional item, free cash flow in H1 was still positive and totaled EUR 79 million. Now to update you on our debt position. Our leverage ratio decreased from 1.96 excluding the VAT anti-settlement effect at the end of December '25 to 1.83 at June '26. The main building blocks of this variation are, of course, the free cash flow we generated, but also the outflow related to M&A with the acquisition of [indiscernible] I already mentioned, and the discontinued operation. Let me conclude with our financial structure. As you can see on this slide, we have continued to successfully diversify our source of funding, which is a key strength of our financial profile. In May, we completed and succeeded our second bond insurance. Like the first one, it was a EUR 700 million transaction, and it was largely [ oversubscribed ]. This new 6 years bond further strengthened our debt profile, extending our average [indiscernible] to 4.4 years. Combined with the EUR 1.7 billion of available liquidity, it provides us with both significant financial flexibility and strong visibility for the years ahead. With that, I will hand back to Maxime.

Before we take questions, I will take you through our outlook. In summary, we have delivered a strong first half with results to match. And so we remain well on track to meet our guidance for the full year. As a reminder, we expect revenue to remain flat and adjusted EBIT to increase by 5% year-on-year to EUR 735 million with CFFO of over EUR 600 million and over EUR 250 million in free cash flow. Beyond '26, over the medium term, we expect to see moderate growth on the top line, over EUR 850 million of adjusted EBIT, over EUR 800 million of CFFO and over EUR 500 million of free cash flow. And as I said at full year, this will be the bare minimum as we are aiming to do more. And our medium-term outlook is not our end point, it is the starting point for our next phase of growth. Thank you. Now we will take your questions.

[Operator Instructions] We will take our first question from Adrien De Saint Eller with BofA,

Yes. Thank you very much for the presentation, please. First, perhaps Maxime and Amandine, you can talk about the retention trends of the newly acquired multi-choice customers that you've observed in July and what you expect in August and September? Secondly, I know in your bridge, you talked about a EUR 35 million impact of gross investments, cost escalators, et cetera. More specifically, can you elaborate on how much Boost investments were made in the first half and how much you expect into the second half? And then lastly, more so for Amandine, are there any cash exceptionals that we should be aware of for '27? Of course, 26 has a lot of things like restructuring and the VAT payments, but anything we should be aware of for '27?

Thank you very much, Adrien, for your question, retention trends on MCG subs. Too early to tell on the World Cup. On the previous months, we have seen no change, no negative change. Of retention, our assessment, early assessment of the MultiChoice situation is really that retention is actually pretty good and that the main issue we needed to address was to increase significantly gross adds. So we've been focusing on sales. And as you've noticed, it has had an impact. although we're cautious because, of course, there was this false positive of the World Cup, which certainly helps, but we know that there are other measures that really had a positive impact. But it's too early to say how many subs following the World Cup will stay on. We're good at that. But we know, of course, some of them would eventually leave. On the negative EUR 35 million impact -- and on the cash question, Amandine?

Yes. So we've been launching a Boost plan. And actually, we started that in H1 -- middle H1. So we only had a small part of the cost in H1 and the bulk of it will be I'm sure you remember the figures that we provide on the full year. It was minus EUR 100 million on the Boost plan. So only a part -- a small part of it was taken on the H1 and the bulk of it in H2. It's a bit similar for the inflection cost. It was also, minus EUR 100 million for the full year. We had a small proportion of increase during the first half, and the majority of it will be on the second [ half ]. If you're adding all the impact that we explained at the full year, we had minus EUR 30 million on the impact of the [ stock ] line decrease, minus EUR 100 million and the inflation and minus EUR 100 million on the boost or a total of 240. So we only had a part of this EUR 240 million as it's only a minus 35 as of today. So we intend to have a larger cost base for the second half of the year. And regarding the impact of the bus plan, 90% of it is variable cost. And so we -- if we manage to have the full impact of the Boost plan, we will have a positive impact on the on the subscriber base trend. And regarding your second question on the exceptional cash for '27, the majority of the exceptional costs that we will have in '26 will be the restructuring cost of MultiChoice and [indiscernible]. We launched the [indiscernible] operation in the last quarter of this half year. We had provision on that, but the cash impact should be on the second half of 2026. We will also have in '26 the remaining EUR [ 89 ] million on the VAT location for '27, we might have some impact on the restructuring of futures but it will be much lower compared to what we -- compared to what we have in '26.

Our next question comes from Jerome Bodin with Auto BHF.

Yes. I hope you hear me well. First question on France, You gave some numbers on profitability for France in 2025. Could you give us some indication for H1? Because the trend is -- does the trends did improve in H1 versus 2025? That's my first question. My second question is just to follow up on Adrian question on the Boost plan. So you said that the number of point of sales is increasing by 15% in H1 and that the commercial initiative should accelerate in H2. So I'm just trying to reconciliate that the two statements. Do you expect an acceleration in terms of number of -- in terms of growth of the number of point of sales in H2? And also, could you be a bit more specific on what does that mean in practice and perhaps give us an example of the type of new distributor that you are adding? And second question on the Boost plan, should we expect some new initiatives next year? And lastly to finish, still on multi choice on FX. So the trends are now positive. Could you remind us your hedging policy? What should be the theoretical translation in terms of revenues and EBIT for the rest of the year?

One on profiability in France?

Yes. So we do not provide the detail on profitability in France for Temresults. What I can say is that, yes, we improved the profitability of France compared to H1 '25. We took many measures actually. And you know that improving the profitability of [ shares ] was 1 of our main strategic axis for this year. We stopped DTT in France. We stopped CA, we did a layer fund in France, and so we had a positive impact in '26 compared to what we had in 205. So we improved the profitability, yes.

On the Boost plan, it will accelerate because it takes time to hire the people that do the door to door, for example, it takes time to rebuild the network. So you asked an example. It's really -- some of them are very established retail points that have stopped selling MultiChoice because the volumes were not there. And it wasn't worth it really when you don't have any volume since most of it is based on commissions for the retail stores to carry MultiChoice. So we're really going to establish stores. But sometimes, it's really very local and mom-and-pop independent stores and establishing them as a multi-choice retail store. So it's really retail physical underground stuff because, of course, you need to be able to take advantage of promotions and so on and really be where people are. So in very dense areas. There will be some new initiatives. It's -- it early to speak. But of course, we're looking at the commercial offers. We're looking at branding. We're looking at content and the number of additional initiatives there. So yes, there is a full plan that we don't necessarily want to communicate right now, but that will continue through the second half '26 and a lot of the 27 as well. On FX?

Yes. On FX, so we had a 0 impact on revenues on H1, but it had 2 different sequences actually, We had a negative impact in Q1 and Post Africa and we had a positive impact in Q2, and this was driven by the MultiChoice countries. Regarding our hedging policy, about two different type of hedging. Regarding the transactional risk, so converting the financial statement from local currency to euro, we do not hedge because it will be too expensive. We had many discussions with the banks, and it was -- especially with the South African currency, it was not making any financial sense. Regarding transactional risk, so the revenue and costs in different currencies, what we do is that we try to do our best to match currencies between cost and revenues. So we try to negotiate payment terms with the right owners in local currencies as much as possible. It's not always possible or easy, but this is really something that we are pushing in our renegotiations. And when it's not possible, we do use financial derivatives to hedge the risk. So great [indiscernible].

And our next question comes from Christophe Cherblanc with Bernstein.

Yes. two questions. The first one is on the middle term, I think, Maxime, you said the medium-term objective was only the beginning before the next phase. We know that the MultiChoice peak subscriber was slightly above 17 million. Do you think it's realistic to come back to that level within 3 to 5 years? I'm not asking for any given year. But stepping back, is that something which you believe is doable? And the second question is on M7. You had mentioned the need to reinvest in M7. And I think you invested in content, within the contribution of Europe, and in was managing France. But is it fair to assume that M7 was still declining? Or are we going to reach bottom in '26? And are we still positive on that part of the footprint?

First answer to your first question is yes. It is reasonable to say that 3 to 5 year spend will reach -- we'll go back to that number. Of course, this is -- as you know, the MultiChoice acquisition was really driven by two objectives. One was reach a scale that enables us to deliver cost synergies, which I think we're showing was warranted; and the second is about taking advantage of the incredible potential of the African continent, and I think we're just at the beginning of that. So of course, I imagine that we'll be able to get back and above the number you mentioned in a 3- to 5-year span. On the second one, I will let Amandine give more details, but your assumption is correct. It is safe to assume that there is a decline in [ BC ] numbers. And it will not bottom out this year. It will continue next year because we -- this is an investment, this is not a decline. This is a company that we need to change because it was really DTH aggregation of linear channels, and we are moving it to OTT, platformization and premium content. So it's -- we are now in an investment mode -- and so it's going to take its toll on profitability for a few years. But of course, we will know how to cover for that with the rest of our activities.

But just on your question, we are still positive on the [Audio Gap] declining but still positive.