TF1 Warns of Ad-Market Contraction in 2014

PARIS: Issuing its 2013 results, where revenues were down 5.7 percent, France's market leading broadcaster, TF1, has warned that ad revenues could yet again contract this year, "in a gloomy economic climate, with no signs of recovery and visibility still poor."

For the full year, revenues dropped to 2.5 billion euros ($3.4 billion), with ad revenues down 5.4 percent to 1.7 billion euros ($2.3 billion) and other revenues down 6.4 percent to 791.3 million euros ($1.1 billion). Net profit attributable to the group was flat at 137 million euros ($188 million).

In Q4, meanwhile, revenues were also down 5.7 percent, reaching 724.3 million euros ($996 million). Ad revenues were down slightly (1.6 percent) to 519 million euros ($714 million), but other revenues fell 14.6 percent, largely as a result of weaker activity in the consumer products segment and in content. Net profit attributable to TF1 rose by 56 percent to 75.3 million euros ($103 million). As at the end of the year, TF1's audience share stood at 28.9 percent among individuals aged 4 and over.

On its 2014 outlook, TF1 expects the ad market to remain challenging. In addition, the cost of the World Cup broadcast rights "will be a drag on profitability" this year.