Group audience share on the key target(1) rises to 32.5% (+1.1 points)
Advertising revenue growth of 1.6%
Current operating profit of EUR107.6 million (margin: 10.4%)
The TF1 Board of Directors, chaired by Gilles Pélisson, met on 21 July 2017 to
close off the financial statements for the six months ended 30 June 2017.
The results shown below (presented using the segmental reporting structure
adopted by the TF1 group), and historical revenue and operating profit data,
are available on the corporate website: www.groupe-tf1.fr/en.
CONSOLIDATED FIGURES (EURm)
Q1 2017 Q1 2016 Q2 2017 Q2 2016 H1 2017 H1 2016 Chg. EURm Chg.%
Revenue 498.9 481.9 537.8 543.3 1,036.7 1,025.2 11.5 1.1%
revenue 365.1 356.1 417.0 414.0 782.1 770.1 12.0 1.6%
activities 133.8 125.8 120.8 129.3 254.6 255.1 (0.5) -0.2%
profit/(loss) 36.3 14.8 71.3 42.7 107.6 57.5 50.1 87.1%
margin 7.3% 3.1% 13.3% 7.9% 10.4% 5.6% - +4.8pts
profit/(loss) 30.5 (19.2) 65.5 22.0 96.0 2.8 93.2 ns
Cost of net
debt (0.9) (0.2) (0.2) (0.4) (1.1) (0.6) (0.5) ns
to the Group 27.7 (13.1) 46.9 12.5 74.6 (0.6) 75.2 ns
Consolidated revenue for the first half of 2017 reached EUR1,036.7 million, up
EUR11.5 million (1.1%) year-on-year, and comprised:
- Group advertising revenue of EUR782.1 million, up 1.6%, driven mainly by
stronger revenue from the DTT channels and a very good performance in
- Revenue from other activities of EUR254.6 million, stable year-on-year.
Current operating profit reached EUR107.6 million, an increase of EUR50.1
million year-on-year, including EUR30.7 million of savings arising from the
lack of any major sporting events during the first half of 2017. The effects of
the multi-channel strategy adopted from the back to school period in 2016 and
of the transformation of the Group had a positive impact of EUR19.4 million on
first-half current operating profit, with a contribution of 1.9-point to the
improvement in margin. Recurring cost savings of EUR14 million were achieved
under the "Recover" plan.
The Group posted an operating profit of EUR96.0 million after charging EUR11.6
million of non-current expenses related to the amortisation of intangible
assets identified in connection with the Newen Studios acquisition.
Overall, net profit attributable to the Group was EUR74.6 million, including
the gain arising on the divestment of the equity interest in Groupe AB, in the
Group's share of the profits and losses of joint ventures and associates.
(1) W<50PDM: women aged under 50 purchasing decision-makers.
The TF1 group continued to roll out its multi-channel strategy in the first
half. The five free-to-air channels(3) attracted a combined audience share of
32.5% among W<50PDM (+1.1 points year-on-year). Within this target audience, a
slight fall in the share taken by the TF1 core channel (21.9%, -0.6 of a point
year-on-year) was more than offset by audience growth for the four DTT channels
pool(4) (10.6%, +1.7 points year-on-year).
This fine performance confirmed the TF1 group's market-leading position, and
represented the strongest year-on-year growth of any French broadcaster among
target audiences. Since the end of the first quarter in particular, the TF1
group has widened the gap over its main rivals, both among W<50PDM and 25-49
*LCI not included prior to the freeview switchover on 5 April 2016
TF1 was the most-watched channel among W<50PDM in all timeslots, especially in
access prime time(5) thanks to the gameshow The Wall (18.0% of W<50PDM). Prime
time schedules also have strong pulling power via flagship entertainment brands
(The Voice, Koh-Lanta with 6.3 million viewers and a 42% share of W<50PDM),
successful French dramas (Munch, with up to 6.3 million viewers), and renewed
American series like Lethal Weapon (L'Arme Fatale) with a record 7.1 million
The Group's DTT pool(3), the market audience leader in key advertising targets,
achieved the strongest rise in audiences of any market player (+1.7 points
year-on-year for W<50PDM, +1.8 points for 25-49 year-olds). Much of this was
due to the successful repositioning of TMC, which grew targeted audiences
faster than any other DTT channel in the first half of 2017 (+1.2 points for
25-49 year-olds, +1.7 points for high socio-professional category).
LCI became France's no.2 news channel in the first half of 2017, with an
audience share in May of 0.8% among individuals aged 4 and over and 0.6% of
high socio-professional category. In a period dominated by the French
presidential and legislative elections TF1, LCI and the Group's digital
channels achieved high audiences across all platforms: for example, the Great
Debate of 20 March attracted 9.9 million viewers on TF1, 345,000 viewers on
LCI, and over 3.3 million video views(6).
MYTF1 had its best-ever semester, with the number of video views up 14% at 628
million, driven by digital audiences for the Group's flagship entertainment
brands such as The Voice (70 million video views, up 14%; Koh-Lanta, 44 million
video views, 50% more than in the previous season).
With effect from 24 April 2017, authentication has been required for internet
users to watch the video of an entire programme on a mobile, tablet or PC. As a
result, the number of identified internet users has to date risen from 9
million to 12.5 million.
(2) Source: Médiamétrie.
(3) TF1, TMC, NT1, HD1 and LCI.
(4) TMC, NT1, HD1 and LCI.
(5) 6pm to 8pm.
(6) Across all platforms.
* The cost of programmes pub lished for H1 2016 was EUR517.5 million, including
EUR19.7 million of non-recurring expenses. Excluding non-recurring expenses,
the cost of programmes was EUR497.8 million.
Advertising revenue for the Group's free-to-air TV channels rose by 1.2%
year-on-year, thanks to very good DTT audience figures and sponsorship revenue.
Other revenue for the Broadcasting segment increased by EUR8.3 million (+8.2%).
After a good first-quarter performance, growth in digital advertising revenue
offset weaker interactivity in the second quarter.
The cost of programmes for the first half was EUR482.2 million, a saving of
EUR15.6 million relative to the first half of 2016, reflecting:
- the impact (net of the cost of replacement programmes) of EUR30.7 million due
to the broadcasting of games from the Euro 2016 football tournament;
- the exclusion of LCI's cost of programmes in the first quarter of 2016, prior
to the channel's freeview switchover;
- reinvestment in programmes (especially coverage of the World Handball
Championship and Confederations Football Cup).
The Broadcasting segment recorded a current operating profit of EUR91.5
million, up EUR53.5 million year-on-year. The contribution from the free-to-air
channels improved by EUR47.7 million mainly on stronger advertising revenue,
reduction in the cost of programmes, and cost savings achieved under the
Studios & Entertainment
Revenue for the Studios & Entertainment segment fell by EUR5.8 million (3.1%)
The non-recognition in revenue of disposals of co-production shares to certain
broadcasters since the start of the year was compensated by the positive effect
of the first-time consolidation of Tuvalu Media Group and Blue Spirit.
Increased revenue at TF1 Studios partly offset a dip in revenue at Newen
Studios, due largely to less favourable production cycles than a year
TF1 Entertainment posted further growth in the first half of 2017.
Studios & Entertainment reported an operating profit of EUR16.1 million, a drop
of EUR3.4 million, which was mainly due to the fact that programme delivery
volumes will be greater in the second half of the year.
Shareholders' equity attributable to the Group was EUR1,503 million at 30 June
2017, out of a balance sheet total of EUR3,402 million.
The net cash position at 30 June 2017 was EUR248 million, compared with EUR187
million at 31 December 2016; the increase was mainly due to cash generated by
The TF1 group's performances in the first half of 2017 - advertising revenue
growth of 1.2% for the five free-to-air channels, a 1.1-point rise in audience
share in target advertising markets, an increased share of the gross
advertising market, and higher margins - all confirm the positive trend that
began in the autumn of 2016 and the relevance of its multi-channel strategy.
At a time of fierce competition in terms of scheduling, we will invest in
high-impact programmes in the second half of the year while remaining within
our overall objectives. The broadcasting of new programmes, such as the summer
saga Demain nous appartient (produced by Newen Studios) and French dramas (La
Mante, Le Tueur du Lac, Les Chamois and Les Bracelets Rouges), combined with
the return of strong, iconic brands such as Koh-Lanta, Danse avec les stars and
The Voice Kids will impact positively the second half of the year.
The second half of the year will also open up new opportunities for advertisers
to invest in slots for 2018, especially in digital via the EBX(7) European
digital airtime sales alliance and the launch of Studio71 France. In addition,
the launch of territory-specific advertising in Belgium will enable advertisers
to target French-speaking Belgian audiences from late 2017 onwards.
TF1 Group is reiterating its full-year guidance:
- Maintain its share of the advertising market by extracting maximum value from
its premium inventories and growing its DTT channels and digital content,
while achieving EUR25 million to EUR30 million of recurring savings
(excluding cost of programmes) under the "Recover" plan.
- Over the 2017-2019 period, continue to limit the cost of programmes by
optimising its investment in content, so as to hold the average annual cost
of programmes (excluding major sporting events) for the five free-to-air
channels at EUR980 million.
- Improve its profitability: the target is for double-digit current operating
margin in 2019, combined with growth in non- advertising revenue for the
five free-to-air channels which is expected to account for at least
one-third of our consolidated revenue in 2019.
The statutory auditors have conducted a review of the financial statements, on
which they have issued an unqualified report.
The presentation and financial information report for the first half of 2017
are available on our corporate website: http://www.groupe-tf1.fr/en.
A conference call is scheduled for 24 July 2017 at 09.00am (Paris time).
For details of how to connect to the conference call go to