Revenue up 2.9% year-on-year
Current operating profit of EUR129.4 million
Strong growth in audience share on target audiences in Q4
Target of a double-digit current operating margin in 2019
The TF1 Board of Directors, chaired by Gilles Pélisson, met on 15 February
2017 to close off the financial statements for the year ended 31 December 2016.
The results shown below are presented using the new segmental reporting
structure adopted by the TF1 group. Definitions of the segments, details of
how consolidated entities are allocated between the operating segments, and
historical revenue and operating profit data have been available since 21 April
2016 on our corporate website: www.groupe-tf1.fr/en.
Revenue 636.0 604.3 31.7 5.2% 2,062.7 2,004.3 58.4 2.9%
revenue 465.5 472.0 (6.5) -1.4% 1,530.1 1,554.2 -24.1 -1.6%
activities 170.5 132.3 38.2 28.9% 532.6 450.1 82.5 18.3%
profit/(loss) 82.8 51.2 31.6 61.7% 129.4 158.0* -28.6 -18.1%
margin rate 13,0% 8,5% + 4.5 pt 6,3% 7,9% -1,6 pt
profit/(loss) 67.8 49.4 18.4 37.2% 45.7 141.2* -95.5 ns
Cost of net
debt (0.2) 0.3 (0.5) ns -1.2 1.1 -2.3 ns
to the Group 55.5 35.0 20.5 58.6% 41.7 99.9 -58.2 ns
* Includes the gain arising on the deconsolidation of Eurosport France in Q1
Consolidated revenue for the year ended 31 December 2016 was EUR2,062.7
million, a year-on-year rise of EUR58.4 million. This comprised:
- advertising revenue of EUR1,530.1 million, down EUR24.1 million on 2015;
- revenue from other activities of EUR532.6 million, up EUR82.5 million
Full-year current operating profit reached EUR129.4 million in 2016; this
compares with EUR158.0 million a year earlier, which included a EUR33.7 million
gain on the deconsolidation of Eurosport France. Operating margin fell by 1.6
points to 6.3%, compared with 7.9% a year earlier.
The Group made an operating profit of EUR45.7 million. This includes EUR83.7
million of non-current expenses, as a result of:
- the negative impact on the cost of programmes of the 27 April 2015 decree on
co-production shares, which applies to productions of French drama (EUR25.4
- non-current expenses associated with the TF1 group transformation plan
- amortisation charged against intangible assets identified in the Newen
Studios purchase price allocation (EUR24.8 million);
- the first-quarter operating loss of the LCI channel, which switched to
freeview on 5 April 2016 (EUR8.2 million).
Net profit attributable to the Group amounted to EUR41.7 million.
The TF1 group, France's leading private-sector television group in 2016,
slightly increased its share of the target audience of "women aged under 50
purchasing decision makers" (W<50PDM) by 0.1 of a point to 32.1%, and held its
share of the 25-49 age bracket steady at 28.9%.
The Group's five free-to-air channels had a combined audience share of 27.4%
among individuals aged 4 and over in 2016, down slightly year-on-year (-0.3 of
The TF1 core channel confirmed its market leadership in 2016, with its usual
range of must-see and general-interest programmes. Over the year as a whole,
the channel achieved 90 of the top 100 audience ratings, with successes across
all programme genres. French drama occupied 36 of these slots, 4 more than in
2015, reflecting TF1's ability to reinvent itself with a combination of new
programmes (Sam, Le secret d'Elise, La vengeance aux yeux clairs) and flagship
brands (Sections de recherches, Profilage). Audiences for the Euro 2016
football tournament peaked at 19.3 million viewers for the semi-final with
French national team Equipe de France. During 2016, the TF1 channel had an
audience share of 22.4% among W<50PDM, and 20.4% among individuals aged 4 and
The Group's DTT channels (TMC, NT1, HD1 and LCI) had an excellent year, raising
their audience by 1.1 points to 9.7% among the target market of W<50PDM.
LCI captured an audience share of 0.4% among individuals aged 4 and over,
following a relaunch spearheaded by 24 heures en questions, hosted by Yves
Calvi in access prime time.
In the fourth quarter of 2016, the five free-to-air channels had a combined
audience share of 33.7% among W<50PDM, a better performance than in the fourth
quarter of 2015, driven by a 2.5-point rise for the DTT channels (combined
audience share of 11.3% of W<50PDM):
- TMC: +1.2 points (4.9% of W<50PDM);
- NT1: +0.5 of a point (3.8% of W<50PDM);
- HD1: +0.6 of a point (2.4% of W<50PDM);
- LCI: +0.2 of a point (0.2% of W<50PDM).
* Includes the gain arising on the deconsolidation of Eurosport France in Q1
** Excludes EUR25.4 million (EUR15.3 million for Q1, EUR4.4 million for Q2,
EUR1.2 million for Q3 and EUR4.5 million for Q4) of non-current expenses
relating to the co-existence of two different accounting treatments for French
drama depending on whether it was produced before or after the decree of April
27, 2015 allowing broadcasters to own co-production shares in respect of their
investments in independent productions
(1) Source: Médiamétrie-Médiamat.
Broadcasting segment revenue was EUR1,669.9 million in 2016, down EUR66.2
million. Strong growth in digital revenue didn't offset a slight fall in
advertising revenue for the five free-to-air channels (down EUR14.6 million),
the ending of distribution revenue for LCI in 2016, the lack of sports rights
resales (versus the EUR13 million from the Rugby World Cup in 2015), and the
structural effect of the deconsolidation of Eurosport France (EUR17.8
Advertising revenue from the TF1 group's five free-to-air channels amounted to
EUR1,455.3 million (down 1.0% year-on-year), in the absence of any marked
recovery in the TV advertising market.
The cost of programmes for the five free-to-air channels (including LCI) in
2016, excluding major sporting events and non- current items, was EUR960.5
million, versus EUR929.4 million for four free-to-air channels a year
previously. The cost of screening all the Euro 2016 matches carried on the
Group's channels was EUR46.1 million (or EUR36.9 million, net of the cost of
Digital activities enjoyed strong growth during the year on the back of
increased interactivity and growth in advertising revenue at MYTF1. In 2016,
the MYTF1 catch-up service attracted up to 10.7 million unique users via ISP
set top boxes(2). During the year, 1.3 billion free videos were watched on
MYTF1(3), representing a 15% year-on-year increase in usage and stimulating
substantial growth in catch-up TV advertising revenue.
Current operating profit for the Broadcasting segment for 2016 was EUR87.5
million, down EUR47.1 million year-on-year, although EUR33.7 million of that
decrease was due to the deconsolidation of Eurosport France in the first
quarter of 2015.
Studios & Entertainment
The growth in revenue for the Studios & Entertainment segment reflects the
first-time consolidation of Newen Studios with effect from 1 January 2016. A
good performance from TF1 Entertainment only partly offset weaker revenues from
the home shopping business.
The segment made a current operating profit of EUR41.9 million in 2016, EUR18.5
million more than in 2015.
Shareholders' equity attributable to the Group stood at EUR1,493.4 million as
of 31 December 2016, out of a balance sheet total of
The gross cash position as of 31 December 2016 was EUR419.3 million, versus
EUR700.8 million a year earlier (a reduction of EUR281.5 million), after the
dividend payout of EUR167.3 million, the cash outflow on the acquisition of 70%
of Newen Studios, and share buybacks of EUR21.4 million.
The net cash position as of 31 December 2016 was EUR186.7 million, after taking
account of the net debt carried by Newen Studios and options to buy out
To reward investors, the Board of Directors will ask the Annual General
Meeting, scheduled for 13 April 2017, to approve a dividend of EUR0.28 per
The ex-date will be 28 April, the date of record will be 2 May, and the payment
date will be 3 May 2017.
Movements in share capital
Since the start of 2016, a total of 316,693 shares have been issued as the
result of the exercise of stock options. Over the same period, following
purchases of TF1 shares on the stock market under the share buyback programme,
the Board of Directors approved the cancellation of 1,420,718 treasury
After taking into account those issues and buybacks, the number of shares and
voting rights as of 31 December 2016 was 209,417,542. The share capital as of
that date was EUR41,883,508.40.
In accordance with the AFEP-MEDEF recommendations, information about executive
remuneration is being published today on our corporate website at
www.groupe-tf1.fr/en: go to Investors / Governance / Report on Remuneration.
(2) Médiamat IPTV Médiamétrie.
(3) Excluding news content, XTRA content and live sessions.
Acting on the recommendations of the Director Selection Committee, the Board of
Directors will ask the Annual General Meeting of 13 April 2017 to renew the
terms of office of Catherine Dussart and Olivier Bouygues as directors for a
further three years.
If these proposals are approved, it will maintain the proportion of both
independent directors and women directors on the Board at 44% (not counting the
employee representative directors, both of whom are women).
2016 was a year of transformation, in which the TF1 group set new operational
priorities and implemented a new organisational structure. In 2017, we will
push ahead with a resolutely multi-channel, multi-media and multi-activity
strategy, combining pulling power with targeted reach on each channel and
developing growth areas in DTT, digital and production.
To meet these challenges, the Group will strive to:
- Develop attractive and distinctive content with a competitive cost base, in
particular by expanding our production activities.
- Broaden the distribution of content by multiplying the number of
distribution channels and strengthening the bond with the viewer/consumer.
- Improve the monetisation of both linear and non-linear content.
This strategy should help us improve our profitability: we are targeting a
double-digit current operating margin rate in 2019, with growth in
non-advertising revenue for the five free-to-air channels expected to account
for at least one-third of our consolidated revenue in that year.
On the production side, taking a stake in Newen Studios has opened many new
opportunities in the creation and distribution of content, both in France and
internationally. Our ongoing expansion in digital, across all devices and
networks, is intended to help us reach new targets with rejuvenated content,
and better monetise user activity.
We will continue to apply our rigorous management approach, which from 2017
onwards will enable us to:
- Limit the cost of programmes by optimising our investment in content. This
will involve an overhaul of our rights buying policy, increasing in-house
production, and developing content for digital devices. Over the next three
years, this policy should enable the Group to hold the average annual cost
of programmes (excluding major sporting events) for our five free-to-air
channels at EUR980 million.
- Achieve EUR25 million to EUR30 million of recurring savings (excluding cost
of programmes) under the "Recover" plan.
- Maintain our share of the advertising market by extracting maximum value
from our premium inventories, and growing our DTT channels and digital
- Take new initiatives in distribution so as to maximise the value of our
services, both in France and internationally.
Our ambition is to strengthen our leadership in television, innovate in
services to advertisers, accelerate our growth in production and digital, and
showcase our brands across all platforms.
The financial statements have been audited, and an unqualified audit report has
been issued by the auditors.
Find the full financial statements and notes at http://www.groupe-tf1.fr/en.
The analyst meeting presenting our results will be streamed on our website
http://www.groupe-tf1.fr/en on 16 February 2017, starting 09.00 hours Paris
The presentation is available on http://www.groupe-tf1.fr/en.
For details of how to connect to the conference call go to