PARIS (Reuters) – TF1 announced on Thursday an 8.9% decline in its advertising revenue in the third quarter, due in particular to an unfavorable base effect, revenues having been boosted the previous year by the Men’s soccer euro.
The French television group stressed that this contraction was also linked, for digital advertising activities, to the sale of Livingly Media and Gofeminin.de. The group’s advertising revenues over the period thus fell to 327.9 million euros against 360 million a year earlier.
Consolidated revenue amounted to 553 million euros in the third quarter (+6% over one year), driven in particular by the growth of Newen Studios, the group’s production subsidiary behind programs such as ” Versailles” and “More beautiful life”.
The Bouygues group announced last month the abandonment of the project to merge its subsidiary TF1 with the M6 group because it had not overcome the reluctance of the competition authority. This operation was intended to enable the two groups to better withstand the increasingly fierce competition from American streaming platforms.
TF1 has spent a total of 25 million euros in 2021 and 2022 to work on this merger, financial director Philippe Denery told the press during a conference call.
A week after this failure, Rodolphe Belmer – former head of Canal + (Vivendi group) and Eutelsat – was appointed head of TF1 with the same objective: to fight against Netflix and Disney, who have every intention of further accentuating their pressure by launching reduced price offers, financed by advertising.
TF1 did not provide any financial targets for the year.
(Report Mathieu Rosemain, French version Jean-Michel Blot, told by Jean-Stphane Brosse)