Revenue of EUR494 million, down 10.8%(1) due to a drop in advertising
High reactivity in cost of programmes, with savings of EUR23 million
Current operating profit down at EUR42 million
First quarter impacted by the initial effects of Covid-19
Boulogne, 29 April 2020
The TF1 Board of Directors, chaired by Gilles Pélisson, met on 29 April 2020
to close off the financial statements for the first quarter of 2020. The
results below are presented using the segmental reporting structure adopted by
the TF1 group and in accordance with IFRS 16 (applicable from 1 January
2019). Revenue and operating profit data (published and restated) are available
in our 2020 first-quarter Financial Information Report and on the TF1 group
corporate website: www.groupe-tf1.fr/en.
EURm Q1 2020 Q1 2019 Chg. EURm Chg. %
TF1 group advertising revenue 356.7 394.9 (38.2) -9.7%
Revenue from other activities 137.2 158.8 (21.6) -13.6%
Consolidated revenue Broadcasting 389.9 419.7 (29.8) -7.1%
o/w Advertising 341.7 375.6 (33.9) -9.0%
Studios & Entertainment 68.5 93.5 (25.0) -26.7%
Unify 35.5 40.5 (5,0) -12.3%
Consolidated revenue 493.9 553.7 (59.8) -10.8%
Cost of programmes (199.1) (222.1 (23.0 )10.3%
Broadcasting 43.8 49.9 (6.1) -12.2%
Studios & Entertainment 2.1 13.1 (11.0) -84.0%
Unify (3.9) (0.1) (3.8) N/A
Current operating profit 42.0 62.9 (20.9) -33.2%
Current operating margin 8.5% 11.4% - - 2.9pts
Net profit attributable to the
Group 24.0 40.6 (16.6) -40.9%
Consolidated revenue of the TF1 group for the first quarter of 2020 reached
EUR493.9 million, down EUR59.8 million (10.8%) year- on-year(1). Excluding the
effects of changes in structure, TF1 group revenue decreased by 8.5%.
Group advertising revenue was EUR356.7 million, down 9.7% year-on-year. After a
performance in line with our expectations in January and February, this
decrease reflects a gradual increase in cancellations of advertising campaigns
during March in response to the Covid-19 crisis.
Current operating profit amounted to EUR42.0 million(2), down EUR20.9 million.
The Group was able to limit this decrease through
major efforts to achieve cost savings and to adjust programming schedules in
light of the crisis.
Overall, the impact of the crisis over the last two weeks of March was a
reduction of around EUR35 million to EUR40 million in advertising revenue,
which in turn led to erosion of around EUR10 million at gross profit level. The
Group also incurred specific extra costs on combatting Covid-19, estimated at
around EUR3 million, giving an overall adverse effect on current operating
profit of around EUR13 million.
Net profit attributable to the Group was EUR24.0 million, down EUR16.6 million
(1) Includes EUR12.7 million for the effects of changes in structure
(newly-consolidated acquisitions, net of the deconsolidation of
(2) Current operating profit after leases (i.e. excluding the impact of IFRS
16) for Q1 2020 was EUR41.1 million, down EUR20.8 million year-on-year.
Analysis by segment
Right from the start of the lockdown period, the TF1 group took steps to ensure
that all its staff and partners were carrying out their duties in compliance
with the safety guidance issued by the government. From mid-March onwards, the
Group adopted teleworking on a massive scale, with around 90% of employees
working from home during the lockdown period.
- The audience share of the TF1 group among advertising targets remained high
in the first quarter, at 31.6% of W<50PDM(4) and 28.8% of 25-49 year-olds. The
start of the year featured the return of strong entertainment brands like The
Voice and Koh-Lanta, successful French dramas such as Peur sur le lac and
Munch, and US series like New Amsterdam and Magnum.
From March onwards, as lockdown measures brought a halt to filming in front of
live audiences, the Group was forced to adjust its programming schedules:
- Increased news coverage, with extended news bulletins and expert commentators
(up to 9.2 million viewers and 31.8% audience share for the evening bulletin,
and up to 9.0 million viewers and 43.9% audience share for the lunchtime
- Repeats of family favourites like the movie Les Tuche on TF1 (5.8 million
viewers, 25.2% audience share) and the series Friends and Une nounou d'enfer
(The Nanny) on TFX.
- Retaining first-run shows like The Voice, Koh Lanta, Quotidien and C
Canteloup, but adapting the running time or format in line with the new
restrictions on filming.
- Sourcing alternative programmes in access prime time following the suspension
of filming on the daily saga Demain nous appartient, including a number of
launches (Sept à huit la quotidienne, Qui veut gagner des millions à la
- Substantial uplift in non-linear audiences on MYTF1, which posted a record
audience in the quarter with 580 million video views(5), up 44% year-on-year.
- Broadcasting segment revenue amounted to EUR389.9 million, a decrease of
EUR29.8 million or 7.1%.
- Broadcasting segment advertising revenue for the first quarter of 2020 was
9.0% lower year-on-year at EUR341.7 million. After slight revenue growth early
in the year, airtime sales have since March seen significant postponements and
cancellations of advertising campaigns. Initially confined to the travel and
tourism sector, this spread to most other sectors once the first Covid-19
lockdown measures were introduced.
- Revenue from other Broadcasting segment activities advanced by EUR4.1 million
year-on-year. This rise reflects a good performance in interactivity, linked to
strong audience ratings for flagship shows like The Voice, Petits plats en
équilibre and Les 12 coups de midi.
- The cost of programmes on the Group's five free-to-air channels was EUR199.1
million. The programme spend budgeted at the start of the year was adjusted in
line with the drop in advertising revenue, generating savings of EUR23.0
million in the quarter. This rapid response from our teams helped reduce the
impact of the crisis on Broadcasting segment gross profit.
- Broadcasting segment current operating profit was EUR43.8 million, down
EUR6.1 million year-on-year and generating current operating margin of 11.2%
(-0.7 of a point year-on-year), testimony to the segment's rapid response
Since it emerged at the start of March, the crisis has confirmed the status of
TV as a medium for every generation. Médiamétrie metrics show that the
average daily viewing time in France during the first two weeks of lockdown was
4 hours 44 minutes, a year-on-year increase of 1 hour 14 minutes(6). Over the
same period, the average time young people in the 15-34 age bracket spent
watching TV rose from 1 hour 37 minutes to 2 hours 35 minutes. Throughout the
crisis, TF1 - as a mass media group - is playing its societal role to the full.
During March, viewers watched the TF1 core channel for an average of 48 minutes
a day, 15% more than in March 2019.
(4) Women aged under 50 purchasing decision-makers.
(5) 4-screen audiences including live, excluding news and ISP apps
(6) From 16 to 29 March 2020 vs March 2019.
Studios & Entertainment
- Studios & Entertainment segment revenue for Q1 2020 was EUR68.5 million, down
EUR25.0 million year-on-year. This decrease was mainly due to the EUR20 million
impact of the deconsolidation of Téléshopping in the second quarter of
As expected, first-quarter revenue at Newen was affected by the early delivery
of some productions in the final quarter of 2019. Some of the drop in revenue
was also due to the complete shutdown of shooting in France and other countries
in the last two weeks of the quarter. The order book as of 31 March was in line
with the end-2019 level at over 1,500 hours, reflecting delays in the delivery
of productions already ordered.
At TF1 Studio, revenue was down year-on-year due to fewer films going on
general release, and the continuing structural decline in physical video
Finally, TF1 Entertainment saw a slight decrease in revenue due to seasonal
effects, plus the cancellation of live music shows and the closure of La Seine
Musicale from March onwards.
- Studios & Entertainment posted a current operating profit of EUR2.1 million.
The year-on-year decrease was due not only to reduced revenue, but also to a
tough comparative due largely to a reversal of outstanding purchase invoices
not received that was booked in the first quarter of 2019.
- The Unify division posted revenue of EUR35.5 million, down EUR5.0 million
Revenue from digital advertising, programmatic and advertiser services was hit
hard by the cancellation of advertising campaigns in France and elsewhere from
March onwards. At the same time, audiences for the Marmiton and Doctissimo
sites saw particularly strong growth in the first quarter (24% more visits to
Marmiton year-on-year(7)), driven by initiatives set up in response to the
crisis (such as special lockdown recipes and chatbots).
Social e-commerce (subscription box sales) proved resilient in the quarter, as
ad campaigns on the TF1 group's TV channels
pulled in new subscribers.
- Unify posted a current operating loss of EUR3.9 million, EUR3.8 million more
than the Q1 2019 loss. Lower revenues, and costs associated with the ongoing
reorganisation of the division, weighed on profitability (which is
traditionally weaker at the start of the year).
Shareholders' equity attributable to the Group was EUR1,588.6 million at 31
March 2020 out of a balance sheet total of EUR3,476.1 million.
Net debt at 31 March 2020 was EUR27.7 million before lease obligations8 and
EUR127.7 million after lease obligations(8), compared with EUR126.3 million and
EUR225.8 million respectively at 31 December 2019.
(7) Google Analytics.
(8) Under IFRS 16, applicable from 1 January 2019.
Showing solidarity in the Covid-19 crisis
As the Covid-19 crisis took hold in the first quarter of 2020, the TF1 group
rallied round with a series of initiatives:
- Regular screening on our channels of public information announcements about
what the public in general, and kids in particular, can do to prevent the
spread of the virus.
- Donating advertising slots for charity appeals aimed at the public and
corporate donors including support for frontline health workers, helping
hospital patients and older people in care homes or self-isolation keep in
touch with their families, medical research and medical equipment.
- Unify donating some of its online advertising space to support hospitals and
charities fighting the pandemic.
- Partnering the Nation Apprenante (Learning Nation) campaign of the Ministry
of National Education and Youth by providing free access to content on the
Ushuaïa TV and Histoire TV channels (also accessible on the MYTF1 platform).
Our first-quarter 2020 results reflect the initial impacts of the Covid-19
crisis, but also our capacity to adapt rapidly in terms of programme schedules
and cost control.
The ongoing crisis will have a very strong impact on the second quarter of 2020
across all of our activities, due to the extension of the lockdown period and
the fact that we cannot continue to adjust our variable costs on the same scale
over the longer term. In addition, resumption of our normal activities could be
a slow and gradual process.
Despite the significant economic fallout from this major crisis, we remain
confident in our ability to rise to the challenge. We have a robust financial
position, with low debt and access to bilateral credit facilities. Our
activities have a long-term future, and the current crisis only serves to
strengthen the legitimacy of what we do.
As announced in our 1 April 2020 press release, we have withdrawn our
objectives for 2020. Our objectives for 2021 remain suspended.
Our Financial Information Report for the first quarter of 2020 is available at
A conference call on our first-quarter results is scheduled for 18.30 CET on
29 April 2020.
For details of how to connect go to
https://www.groupe-tf1.fr/en/investors/results-and-publications, and then
"Access the results for the fiscal year"
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