Revenues in Canal+ France took a hit in the first half of 2014 following January’s VAT increase from 7% to 10%.

French President Francois Hollande brought in the measure to fund tax credits for firms that keep jobs in France.

Outside of France revenues from pay-TV operations rose sharply as the subscriber base grew. However, EBITDA of €430 million was still €10 million lower than in the first six months of 2013. Revenues came in at €2,667 million.

At the end of June 2014, Canal+ Group had a total of 15.1 million subscriptions, up 940,000 year-on-year, due to strong performances in Africa and Vietnam due in particular to the 2014 FIFA World Cup, as well as the growth of Canalplay, its video on demand offer in mainland France.

Subscribers outside of mainland France now represent more than 40% of the group’s portfolio.