Full-year revenue growth of 3.0%
Current operating profit of EUR185 million
Margin rate of 8.7%, up 2.4 points
Group share of target audience(1) higher year-on-year at 32.3%
The TF1 Board of Directors, chaired by Gilles Pélisson, met on 15 February
2018 to close off the financial statements for the year ended 31 December
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 our corporate website: www.groupe-tf1.fr.
CONSOLIDATED FIGURES (EURm)
Q4 2017 Q4 2016 Chg. EURm Chg.% 2017 2016 Chg. EURm
Revenue 658.3 636.0 22.3 3.5% 2,124.9 2,062.7 62.2 3.0%
revenue 479.6 465.5 14.1 3.0% 1,561.7 1,530.1 31.6 2.1%
activities 178.7 170.5 8.2 4.8% 563.2 532.6 30.6 5.7%
profit/(loss) 69.8 82.8 (13.0) -15.7% 185.3 129.4 55.9 43.2%
margin rate 10.6% 13.0% - -2.4pts 8.7% 6.3% - +2.4pts
profit/(loss) 64.0 67.8 (3.8) -5.6% 162.0 45.7 116.3 x3.5
Cost of net
debt (0.3) (0.2) (0.1) 50% (1.5 )(1.2) (0.3) 25.0%
to the Group 51.2 55.5 (4.3) -7.7% 136.1 41.7 94.4 x3.3
Consolidated revenue for the year ended 31 December 2017 was EUR2,124.9
million, up EUR62.2 million year-on-year, comprising:
- advertising revenue of EUR1,561.7 million, up EUR31.6 million (+2.1%) on
- revenue from other activities of EUR563.2 million, up EUR30.6 million
Full-year current operating profit reached EUR185.3 million in 2017, compared
with EUR129.4 million a year earlier, an increase of EUR55.9 million. This
- the effects of the multi-channel strategy and the transformation of the
- a saving of EUR22.7 million on the cost of programmes, including the absence
of major sporting events (or a saving of EUR36.9 million, net of replacement
- recurring savings of EUR27 million under the "Recover" plan.
Operating margin rose by 2.4 points to 8.7%, compared with 6.3% a year
The Group posted an operating profit of EUR162.0 million, after charging
EUR23.3 million of non-current expenses related to the amortisation of
audiovisual rights remeasured in connection with the Newen Studios
Net profit attributable to the Group amounted to EUR136.1 million. As well as
net profit from operations, this also includes gains on the divestment of
equity interests in Groupe AB and Teads; a tax gain from the reimbursement of
the 3% levy on dividends; and an exceptional corporate income tax contribution
related to changes in the tax rate at the end of the year.
(1) W<50PDM: Women aged under 50 purchasing decision-makers.
The TF1 group, France's leading private-sector television group in 2017,
slightly increased its share of the target audience of W<50PDM by 0.2 of a
point year-on-year to 32.3%, and also upped its share of the 25-49 year-olds
target audience by 0.3 of a point to 29.2%.
The Group's five unencrypted channels had a combined audience share of 27.7%
among individuals aged 4 and over in 2017, up 0.3 of a point year-on-year.
A particular highlight was the successful renewal of strong access prime
time(3), with each channel addressing complementary targets:
- TF1: the daily soap Demain nous appartient, produced by Newen Studios,
attracted an average audience of 3.4 million, including 0.6 million catch-up
- TMC: Quotidien built on its initial success, boosting the channel's audience
- TFX(4): the reality TV franchises 10 couples parfaits and La Villa des
coeurs brisés achieved ratings success;
- TF1 Séries Films(4): French and American series were popular among women
viewers (Section de recherches, for example);
- LCI: David Pujadas, a new face on LCI, enjoyed success with 24h Pujadas,
l'info en questions.
The TF1 core channel confirmed its market leadership in 2017, growing its share
of W<50PDM in the second half of the year with its usual range of mainstream
programmes and event TV. The channel achieved 19 of the top 20 audience ratings
of 2017, with successes across all programme genres. French drama had the most
entries of any genre (42 programmes) in the top 100 audiences of 2017, and TF1
led the way with a diverse range of must-see prime time drama (Le tueur du lac
with 7.2 million viewers, Mention Particulière with 6.5 million) alongside
established franchises that performed very well (Section de Recherches with up
to 7.3 million viewers, Alice Nevers with up to 6.5 million).
In news and current affairs, TF1 scored the highest audience rating of the year
with the Great Presidential Debate (9.9 million viewers). The channel's regular
news bulletins remained well ahead of the competition with up to 6.9 million
viewers on weekday evenings and up to 7.8 million on weekend evenings.
The Group's DTT channels (TMC, TFX, TF1 Séries Films, LCI) are market leaders
for target audiences averaged over a 24-hour day. They had an excellent year,
raising their share of the W<50PDM target audience by 0.5 of a point to 10.2%.
This was due to the successful repositioning of TMC, which grew its audience
share by a substantial 0.6 of a point among the target market of 25-49
year-olds and by 1.0 point among ABC1s.
LCI captured an audience share of 0.6% among individuals aged 4 and over, and
confirmed its status as France's no. 2 news channel.
MYTF1 also turned in a fine performance in 2017 as the number of video views
hit 1.3 billion(5), boosted by flagship programmes like Demain nous appartient
(101 million) and Quotidien (65 million).
Since April 2017, viewers have been required to log in to watch entire
programmes across the three digital screens. As a result, the number of
identified internet users has doubled to 18 million.
* The cost of programmes pub lished for 2016 was EUR1,032 million, including
EUR25.4 million of non-recurring expenses. Excluding non-recurring expenses,
the cost of programmes was EUR1,006.6 million.
(2) Source: Médiamétrie-Médiamat.
(4) NT1 and HD1 were rebranded as TFX and TF1 Séries Films respectively at the
end of January 2018.
(5) Excluding news content, XTRA content and live sessions.
Revenue for the Broadcasting segment reached EUR1,713.6 million in 2017, an
increase of EUR43.7 million, reflecting stronger advertising revenue for the
five unencrypted channels (up EUR25.2 million) and top-line growth for the
theme channels and digital activities.
Advertising revenue from the TF1 group's five unencrypted channels amounted to
EUR1,480.5 million (+1.7% year-on-year), contributing 69.7% of consolidated
The cost of programmes for the TF1 group's five unencrypted channels, in the
absence of any major sporting events, showed year-on-year savings of EUR22.7
million and a total of EUR983.9 million in 2017. These figures include
controlled reinvestment in the DTT channels to support the multi-channel
Digital activities enjoyed robust growth during the year on the back of
increased interactivity and growth in advertising revenue at MYTF1, boosted by
Current operating profit for the Broadcasting segment for 2017 was EUR143.3
million, up EUR55.8 million year-on-year, driven largely by the advertising
performance of the unencrypted channels, savings in the cost of programmes, and
recurring savings under the "Recover" plan.
Studios & Entertainment
Revenue from the Studios & Entertainment segment rose by EUR18.5 million in
2017. On a like-for-like basis (i.e. after eliminating the additional amount of
co-production shares awarded by Newen in 2017 and recognised in "Other revenue"
at EUR27 million), organic growth accounted for 38% (EUR17.4 million) of the
growth in segment revenue, and external growth for 62% (EUR28.1 million). The
main contribution to the segment's external growth came from Newen's
acquisition of Tuvalu.
The segment made a current operating profit of EUR42.0 million in 2017, stable
relative to 2016, as good performances on the production side offset weaker
profits from home shopping and movies. 2017 was also a year of investment,
which is expected to deliver improvements in profitability from 2018 onwards.
Shareholders' equity attributable to the Group was EUR1,581.9 million as of 31
December 2017, out of a balance sheet total of
The gross cash position as of 31 December 2017 was EUR495.5 million (up EUR76.2
million on the previous year-end) after the dividend payout of EUR58.6 million,
the cash outflow on the acquisition of equity interests in Tuvalu and Studio71,
and the proceeds from the divestment of equity interests in Groupe AB and
The net cash position as of 31 December 2017 was EUR256.7 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 19 April 2018, to approve a dividend of EUR0.35 per
The ex-date will be 30 April, the date of record will be 2 May, and the payment
date will be 3 May 2018.
Movements in share capital
Between 1 January and 31 December 2017, 448,200 shares were created as a result
of the exercise of stock options. TF1 did not hold any of its own shares during
As of 31 December 2017, the number of shares and voting rights stands at
209,865,742, and the share capital is EUR41,973,148.40.
In accordance with the AFEP-MEDEF recommendations, disclosures about executive
remuneration are being published today on the corporate website at
www.groupe-tf1.fr/en: go to Investors / Governance / Report on Remuneration.
Acting on the recommendations of the Director Selection Committee, the Board of
Directors will ask the Annual General Meeting of 19 April 2018 to renew the
terms of office of Laurence Danon Arnaud, Martin Bouygues, and Bouygues SA
(permanent representative: Philippe Marien) as directors for a further three
The terms of office of the two employee representative directors expire in
2018. The employee representative directors are directly elected by TF1
employees in advance of the Annual General Meeting. The Annual General Meeting
of 19 April 2018 will know the names of the employee representative directors
elected, who will serve for two years.
During 2018, the TF1 group will press ahead with its multi-channel, multi-media
and multi-line strategy, and continue to grow its digital and production
The Group will carry exclusive unencrypted coverage of 28 matches from the
Football World Cup across its channels; continue to refresh its range of series
(La vérité sur l'affaire Harry Quebert), French drama (Les bracelets rouges,
Insoupçonnable) and entertainment (L'aventure Robinson, Running Wild);
consolidate the access prime time slot (Quotidien, Demain nous appartient); and
develop its news and current affairs offer.
In distribution, the Group will - in line with what was achieved with
Altice-SFR in 2017 and Bouygues Telecom in early 2018 - offer TF1 Premium
(content plus new services) to all operators.
In digital, the recently-announced acquisition of the aufeminin group will pave
the way for a different relationship with advertisers built on strong internet
audiences delivered by highly-engaged web communities around aufeminin brands
(aufeminin.com, Marmiton, My Little Paris); these brands have a presence in
over 20 countries, with many followers even paying for gift box plans(6). The
integration of aufeminin with the TF1 group could take place (after clearance
from the competition authorities) during the first half of 2018. This will be
one of the priorities for accelerating the Group's digital transformation in
The TF1 group expects:
- from 2018 onwards: growth in current operating margin at Group level
(excluding major sporting events);
- average annual cost of programmes reduced to EUR960 million (excluding major
sporting events) for the five unencrypted channels for the 2018-2020 period,
thanks to optimisation of investment in content.
As the same time, the TF1 group is reiterating:
- its ambition to deliver growth in revenue from activities other than
advertising on the five unencrypted channels, with those other activities
expected to account for at least one-third of consolidated revenue in 2019;
- its target of double-digit current operating margin in 2019.
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 TF1 group's results will be streamed on the
website http://www.groupe-tf1.fr/ starting 11.00 hours Paris time on 16
The presentation is available on http://www.groupe-tf1.fr/en.
For details of how to connect to the conference call go to