DStv-owner made R285 million by shutting down Showmax

MultiChoice-owner Canal+ recognised a €48 million (R914 million) once-off tax gain in relation to the shutdown of Showmax. 

This offset the impairment of assets and a €14 million (R266 million) net loss from provisions relating to Showmax’s content agreements. 

As a result, instead of losing money by shutting down the streaming service, Canal+ actually reported a €15 million (R285 million) gain from the closure of Showmax. 

This was revealed in Canal+’s financial results for the first half of its 2026 financial year, which is the first set of results incorporating MultiChoice’s financials. 

In late 2025, Canal+ acquired all of MultiChoice’s shares and delisted it from the JSE. It has implemented an aggressive turnaround plan to revive DStv’s fortunes in Africa. 

Part of this turnaround was the closure of Showmax as a standalone streaming service, with it officially ceasing operations at the end of April 2026. 

MultiChoice had told investors in March that the substantial annual losses reported by Showmax are unsustainable for it as a business. 

“The decision to phase out Showmax reflects our focus on building a sustainable, competitive business in an increasingly demanding global streaming environment,” it said at the time.

“This evolution is also consistent with the ambition of Canal+ to deploy its in-house large-scale streaming platform capable of meeting the expectations of African and international consumers.”

Typically, when a business is shut down, it has a negative impact on the bottom line of the parent company or holding unit. 

This is due to costs related to staff layoffs, the impairment of assets, and, in the case of Showmax, the recognition of its final operating loss. 

However, Canal+ revealed in its half-year results that the shutdown of Showmax positively impacted its bottom line during the period. 

This is due to an accounting quirk where the huge losses generated by Showmax significantly lowered MultiChoice’s pre-tax profit, reducing its overall tax burden.

Canal+ explained that because of the huge once-off write-downs and closure costs, MultiChoice’s pre-tax profit for the period plunged. 

This reduction in pre-tax profitability yielded a €48 million (R914 million) once-off tax gain credited to the discontinued Showmax operation. 

The tax gain is significantly larger than the  €33 million (R629 million) pre-tax operating losses recognised by the company as part of the winding down of Showmax. 

Overall, this translated into a €15 million (R285 million) gain from the closure of the streaming service, creating immediate value for shareholders and the business.