net profit drops 38%, sales driven by Newen

The net profit of the television group fell to 24 million euros, due to a fall in its advertising revenue.

the TF1 television group saw its net profit fall by 38% to 24 million euros in the third quarter, due to a drop in its advertising revenue, but its sales nevertheless increased thanks to its production subsidiary Newen, a-t- he announced Thursday in a statement. The group’s consolidated turnover over the period reached 553 million euros, up 6%, while its advertising component fell at the same time by 9% to 328 million euros.

TF1 explains this drop by the “high basis of comparison with a particularly buoyant market in 2021“, with in particular the broadcast of the Euro football, and to”a drop in digital advertising revenue» following deconsolidations.

On the other hand, the commercial dispute with Canal+, which cut off the broadcasting of TF1 channels on all its distribution channels, affected audiences aged 4 and over, but only “little effect» on commercial targets and therefore «no significant impacton the accounts, said TF1 chief financial officer Philippe Denery during a conference call with journalists. “We will do everything so that all French households can regain access to our channels. This is our big topic“, he said.

At the end of the year, the advertising market looks tense due to the effects of inflation and the energy crisis on advertisers. But the group hopes to do well with the broadcast of the World Cup and the revival of “star Academy“.

“Very good performance” by Newen

On the other hand, the production subsidiary Newen signed a “very good performance” with some “prestigious productions like Connection for Apple TV+ and Marie Antoinette for Canal+“. It recorded over the quarter 140 million euros in revenue, up 87%. The studios also benefited from external growth thanks to the contribution of the Spanish Izen and German studios Flare, acquired in 2021, and the acquisition of a stake in the British studio Rise Films in July 2022.

In this third quarter, the Bouygues group, owner of TF1, gave up on merging with M6, failing to convince the Competition Authority of the interest of the operation to resist the rise of American platforms. streaming. The project will have cost TF1 this year 15 million euros in exceptional charges, which are added to ten million euros the previous year.

Bouygues quickly announced a change in governance with the arrival of Rodolphe Belmer, a former Canal+ employee, appointed CEO from Thursday, who will be proposed as CEO in February 2023. The current CEO, Gilles Pélisson, will remain in the in between a non-executive chairmanship and then will be appointed deputy managing director of the Bouygues group in charge of media and development.

Conversely, the M6 ​​group and its shareholders have confirmed Nicolas de Tavernost as Chairman of the Management Board. “This period is not conducive to rapid changes in governance“, had declared this last Tuesday, during the presentation of the turnover of the group.


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