France’s TF1 Posts Lower Q4 Revenue

PARIS: TF1 has reported revenue of 604.3 million euros ($672.3 million) for the fourth quarter of 2015, down 3.9 percent on the comparable period, dragged down by lower ad revenue.

Ad revenue for the four free-to-air channels was down by 1.4 percent in Q4, adversely affected by current events in France, which led to a reduction in advertising spend in late November and early December.

Fourth-quarter current operating profit was 51.2 million euros ($56.9 million), down 34.6 million euros year-on-year. The main factors behind this drop were the screening of 15 Rugby World Cup matches in the fourth quarter of 2014, and the recognition of a gain on the sale of OneCast in the fourth quarter of 2014.

Overall, TF1 reported revenues of 2 billion euros ($2.23 billion) for 2015, down by 87.5 million euros ($97.3 million), due in part to the Eurosport sale and the loss of Stylia, and operating profit of 158 million euros ($175.8 million), up by 41.5 million euros ($46.2 million).

Advertising revenue for the four free-to-air channels fell slightly year-on-year, by 0.5 percent. The group’s DTT channels increased their revenue during 2015, while TF1 maintained its strategy of preserving the value of its advertising slots. The cost of programs for the group’s four free-to-air channels fell by 37.8 million euros ($42 million) year-on-year. Overall, the Broadcasting and Content segment showed a 42.2 million euros ($46.9 million) improvement in current operating profit.

Looking ahead, TF1 said that given the poor visibility for 2016 and the absence of any lasting improvement in the French economy, the net television advertising market is likely to remain flat.