Consolidated revenue of EUR884 million, down 23%(1), affected by the impact
of the Covid-19 crisis
Highly reactive response, with EUR107 million savings on cost of programmes
softening the impact of the fall in revenue
Current operating profit of EUR68 million
Boulogne, 29 July 2020
The TF1 Board of Directors, chaired by Gilles Pélisson, met on 28 July 2020 to
close off the financial statements for the first half 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-half Financial Information Report and on the TF1 group corporate website:
"Our first-half results demonstrate our ability to adapt in the face of a
crisis that has had a profound effect across all of our operations. They are a
tribute to the outstanding commitment of the people who work for us, the
resilience of our broadcasting model, and the unrivalled power of our content.
We have everything in place to deliver exactly what our audiences and our
clients want during the last four months of the year."
(1) Down 22.6% excluding EUR7.4 million for the effects of changes in structure
(newly-consolidated acquisitions, net of the deconsolidation of
Consolidated revenue of the TF1 group for the first half of 2020 was EUR883.5
million, down EUR261.7 million (22.9%) year-on-year. Stripping out the effects
of changes in structure(2), TF1 group revenue decreased by 22.6%.
Group advertising revenue was EUR616.4 million, down sharply (26.3%)
year-on-year. After a first quarter impacted by the first effects of the
Covid-19 crisis, the second quarter saw a big drop in revenue as ad campaigns
were pulled or postponed on a massive scale.
Current operating profit amounted to EUR67.8 million(3), down EUR95.2 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.
Impact of Covid-19: Overall, the impact of the health crisis on the Group's
first-half performance was around EUR250 million in lost revenue, and an impact
on current operating profit of around EUR100 million.
Consequently, net profit attributable to the Group was EUR38.4 million, down
EUR68.9 million year-on-year.
Analysis by segment
The TF1 group has been able to adapt rapidly to the crisis, with protecting the
health of its employees its first priority. Since mid-March, the Group has
adapted its organisation and working practices to ensure business continuity.
The Group has facilitated the use of teleworking, and implemented specific
measures prioritising the ability of news teams to continue covering news
In the midst of the Covid-19 crisis during the first half of 2020, the TF1
group opened up its TV channels and digital platforms to support good causes:
- Charity appeals and pro bono advertising slots for awareness campaigns
supporting frontline health workers, hospital patients, older people in care
homes or self-isolation, victims of violence against women, medical research
into emerging viruses, and medical equipment.
- Adapting our programme schedules and screening special programmes, such as
Qui veut gagner des millions à la maison, raising funds for hospitals and
for charities fighting the pandemic.
French people are watching more television than ever before, as shown by a very
sharp rise in viewing times in the first half to 3 hours 56 minutes (up 26
minutes year-on-year), rising to 4 hours 34 minutes during lockdown(5) (up 1
hour 9 minutes year-on-year). In particular, young people in the 15-34 age
bracket spent an average of 1 hour 59 minutes watching TV in the period, up 17
minutes year-on-year. Since lockdown ended, viewing times have remained high,
averaging 3 hours 41 minutes in June (+20 minutes year-on-year).
- The audience share of the TF1 group among the advertising target of 25-49
year-olds remained high in the first half at 29.6%, stable year-on-year.
To support people through the crisis, the Group adapted its content during the
first half, to better meet viewers' need for news and keep them entertained:
- Gold standard news programming with extended bulletins, expert commentators
and leading politicians (average of 6.7 million viewers for the evening
bulletin and 6.3 million for the lunchtime bulletin, up by 1.3 million and
1.2 million respectively year-on-year).
- Enhanced movie offerings around two strong genres: popular cult comedies like
Les Visiteurs (8 million viewers) and international family franchises like
the Harry Potter saga (average 7.2 million viewers per episode).
(2) EUR7.4 million (newly-consolidated acquisitions, net of the deconsolidation
(3) Current operating profit after leases (i.e. excluding the impact of IFRS
16) for H1 2020 was EUR66.1 million, down EUR95.0 million year-on-year.
(5) 16 March to 10 May 2020
- Iconic entertainment programmes like Koh-Lanta and The Voice, keeping viewers
company for weeks by increasing the number of evening shows broadcast.
- Non-linear content on MYTF1 that posted 961 million video views(6) in the
first half, up 16% year-on-year.
- Broadcasting segment revenue amounted to EUR683.3 million, a year-on-year
decrease of EUR207.5 million or 23.3%.
- Broadcasting segment advertising revenue for the first half of 2020 was
EUR586.1 million, a decrease of EUR205.3 million or 25.9%. Advertisers began
pulling or postponing their campaigns in mid-March. This situation
accelerated rapidly in April and May, and during lockdown. Since lockdown
ended, the downtrend has slowed as advertisers gradually return in certain
sectors such as telecoms, e-commerce and healthcare. The TF1 advertising
airtime sales house has been active throughout the crisis, helping clients
prepare their advertising messages and attracting new advertisers.
- Revenue from other Broadcasting segment activities was down EUR2.2 million
year-on-year. Excluding the impact of the resale of broadcasting rights to
the Women's Football World Cup in the second quarter of 2019, revenue rose
year-on-year thanks to good interactivity performances on shows like
Koh-Lanta, Petits plats en équilibre and Les 12 coups de midi.
- The cost of programmes on the Group's five free-to-air channels was EUR338.8
million. The Group's rapid response in adapting programme spend in line with
the drop in advertising revenue generated savings of EUR107.4 million in the
first half. Measures implemented included enhanced news programming at no
extra cost, optimization of programming costs, and increasing the number of
- Broadcasting segment current operating profit was EUR75.9 million, down
EUR66.6 million year-on-year and generating current operating margin of 11.1%
(-4.9 of a point year-on-year). Savings in programming costs absorbed over
half of the drop in Broadcasting segment revenue, demonstrating the Group's
Studios & Entertainment
- Studios & Entertainment segment revenue for the first half of 2020 was
EUR131.8 million, down EUR37.0 million year-on-year. Excluding the impact of
the deconsolidation of Téléshopping in the second quarter of 2019, the
year-on-year decrease was EUR17 million.
In the first half of 2020, the effect of lower activity levels at Newen (due to
the suspension of shooting in France and other countries during lockdown) was
partly offset by the first-time consolidation of Canadian company Reel One,
acquired in the fourth quarter of 2019. Newen was also one of the first
producers to restart operations, with production resuming on its two flagship
daily shows (Demain Nous Appartient and Plus Belle La Vie) in mid-May for
episodes delivered in June. Finally, the order book as of 30 June remained at a
healthy level of more than 1,500 hours, reflecting delays in the delivery of
productions already ordered.
As TF1 Studios, a reduction in the number of films going on general release was
offset by higher back catalogue sales.
Finally, TF1 Entertainment saw a sharp fall in revenue due to the postponement
or cancellation of projects at music label Play Two and the closure of the La
Seine Musicale venue from March onwards.
- The segment broke even at current operating profit level in the first half.
The year-on-year fall is in line with the drop in revenue.
- Audiences for the Marmiton and Doctissimo sites saw particularly strong
growth in the first half (437 million visits to Marmiton, up 56%
year-on-year(7)), thanks to a refocusing of the editorial line on everyday
cooking and what French people needed during lockdown.
(6) 4-screen audiences including live, excluding news and ISP apps.
(7) Google Analytics.
- The Unify division posted revenue of EUR68.4 million, down EUR17.2 million
Revenue from digital advertising, programmatic and advertiser services was hit
hard by the cancellation, postponement or non-appearance of advertising
campaigns in France and elsewhere from the beginning of March onwards.
Social e-commerce (subscription box sales) proved resilient in the period, as
ad campaigns on the TF1 group's TV channels for My Little Box and Gambettes Box
boosted sales and pulled in new subscribers.
- Unify posted a current operating loss of EUR8.1 million, a net year-on-year
downswing of EUR11.3 million, in line with the drop in revenue.
In a press release issued on 1 April 2020, the TF1 Board of Directors indicated
that they had decided to abandon the proposal to ask the Annual General Meeting
of 17 April 2020 to approve the distribution of a dividend. The resulting
resolution to appropriate 2019 earnings in full to "Retained earnings" was
passed with 99.99% of the votes at the Annual General Meeting. Nevertheless,
the Board indicated that it would meet by August to review the situation.
Given the significant impacts of the Covid-19 crisis seen in the first half,
and the uncertainties as to how the crisis will evolve over the second half,
the Board of Directors met on 28 July and decided irreversibly not to pay a
dividend out of 2019 profits.
However, the Group remains committed to maintaining a policy of returning
profits to shareholders in the long term, as it has done in the past.
Shareholders' equity attributable to the Group was EUR1,589.5 million at 30
June 2020 out of a balance sheet total of EUR3,446.2 million.
Seasonal effects and the lack of a dividend payout meant that the Group
reported net debt of EUR22.1 million at 30 June 2020, excluding lease
obligations(8) (net debt of EUR114.3 million after lease obligations(8)),
compared with net debt of EUR126.3 million at 31 December 2019 (net debt of
EUR225.8 million including lease obligations(8)).
Given the impacts of the Covid-19 crisis seen in the first half and the ongoing
uncertainty on how the virus will spread and with what impact, the TF1 group
has withdrawn its guidance for 2021 (revenue of at least EUR250 million and
EBITDA margin of at least 15% for Unify, and for the Group an improvement in
return on capital employed versus the 2018 level).
Our 2020 first-half results reflect our capacity to adapt rapidly in terms of
programming and cost control, against a backdrop of sharply falling revenues
across all our businesses.
Since lockdown ended, the downtrend in advertising revenue is gradually easing,
with some advertisers resuming their spend to support the recovery in
The Group is lining up a rich, varied back-to-school season, featuring the
return of flagship programmes (Mask Singer Season 2, The Voice Kids), first-run
movies (Le Sens de la Fête and A Star is Born), new launches (Grand Hôtel,
HPI, Ici Tout Commence), and the arrival on LCI of new presenters such as
Darius Rochebin and Eric Brunet.
In parallel, the resumption of shooting in France and elsewhere points to a
return to sustained activity levels through to the end of the year, subject to
the uncertainties inherent in the health crisis. Finally, some activities such
as live shows and concerts are still shut down, with no visibility on when they
(8) Under IFRS 16, applicable from 1 January 2019.
The Selection and Remuneration Committee has proposed to the Board of Directors
that the remuneration of the Executive Officer for the 2020 financial year
should take account of the quality of his handling of the Covid-19 crisis. This
exceptional remuneration, as stipulated in the general principles for
determining remuneration in respect of 2020(10), will be assessed by reference
to defined criteria.
On the proposal of the Executive Officer, the maximum amount of remuneration he
can receive in addition to his fixed remuneration will be reduced by one-third,
and will be capped at 100% of his fixed remuneration.
These items will submitted for a vote by TF1 shareholders at the Annual General
Meeting to be held in April 2021.
The Board of Directors has taken note of the reappointment of Catherine Dussart
and Olivier Bouygues as Directors at the Annual General Meeting of 17 April
2020. The Board has also welcomed new members. Sabrina Zerbib and Sophie
Leveaux have joined the Board as employee representative directors while
Charlotte Bouygues, Head of e-commerce at Aufeminin, has joined as permanent
representative of SCDM, replacing Martin Bouygues. The Board would like to
thank Martin Bouygues for his 33 years serving on the TF1 Board of Directors
and supporting the TF1 group.
The proportion of both independent directors and female directors on the Board
remains at 44% (without taking account of the two employee representative
directors, both of whom are women)
In addition, the TF1 group was ranked 22nd best company overall (out of the 120
major French companies in the SBF 120 index) in the 2019 Ethics & Boards awards
for female representation on corporate decision-making bodies.
The statutory auditors have conducted a review of the financial statements, on
which they have issued a report.
The presentation and financial information report for the first half of 2020
are available on our corporate website: http://www.groupe-tf1.fr/en.
A results announcement call is scheduled for 29 July 2020 at 9.00am
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''
INVESTOR RELATIONS - firstname.lastname@example.org
CORPORATE COMMUNICATIONS - email@example.com
(9) Biographies of the members of the TF1 Board of Directors are available on
the TF1 corporate website (https://www.groupe-tf1.fr/en): go to the Investors
page and select Governance / Board of Directors.
(10) Refer to Chapter 3.5.1 of the TF1 2019 Universal Registration Document.