Net Profit Falls 28 Percent at TF1

BOULOGNE: Market-leading French broadcasting group TF1 reported a 2008 net profit of 164 million euros, reflecting a 28.1-percent fall on the year-ago period, on total revenues of 2.6 billion euros, which were down 5.3 percent.

Announcing the results, TF1 cited its strong audience share, of 27.2 percent for the year, with 96 of the 100 biggest TV audiences in 2008. Nonetheless, TF1 has been impacted by the economic downturn, with ad revenues on the flagship TF1 channel down 4.1 percent to 1.6 billion euros, and overall ad revenues down 2.7 percent to 1.8 billion euros. Revenues from other activities fell 7.1 percent to 948 million euros.

For this year, TF1 is projecting a 9 percent fall in consolidated revenues. Plans are in the works to cut about 60 million euros from the company’s expenses. Nonce Paolini, TF1’s chairman, stated: "In front of such an unprecedented crisis, which affects every sector of the economy, the whole group is moving to face the present challenge. Nevertheless, I am convinced that the TF1 model remains more relevant than ever because of our capacity to limit programming costs as well as to federate a large audience and offer as a consequence to media buyers exceptional exposure conditions. We are going to proceed with, and accelerate changes which will enable us to achieve our profitability targets and consolidate our leadership."