Cana Plus=minus
French pay TV giant reports $96 mil loss for 1998
The loss did not come as a surprise as it had been predicted by Canal Plus execs for months. In fact, the red ink spilled was slightly less than earlier company estimates that had warned of losses in excess of $100 million.
The company has invested heavily in digital launches in France, Italy, Spain, Poland, Belgium and Scandinavia. and still is absorbing the NetHold group.
Revenues climb
Revenues for the group, which has around 11 million subscribers across Europe, rose 19% to $2.7 billion, spurred on by strong performances from the core French pay television operations and the Canal Satellite digital platform. In France, Canal Plus and Canal Satellite saw subscriptions rise by 900,000 last year to hit six million.
Despite digital competition from the rival Television Par Satellite platform, Canal Satellite's operating losses improved to $77 million compared with $113 million in 1997. A company statement said that Canal Satellite is headed toward breaking even this year.
Profit predicted
The statement added that the group had made a $49 million capital gain on the disposal of Havas shares and a further $44 million dilution gain after Time Warner's acquisition of a stake in Canal Satellite.
Canal Plus management is predicting a consolidated net profit for 1999, due mainly to cost control in France and a significant rise in subscribers for its non-French channels.
