Q3 results in the red, new restructuring at TF1
Pascale Paoli-Lebailly | 14-11-2012
French private media group TF1 has launched a new restructuring phase which aims to generate €85 million cost cuts from now to the end of 2014.
Called "optimization", this plan is due to Q3 results that were in the red and nine-month results showing a fall in current operating profit for the Broadcasting France division.
Though still assuming consolidated revenue over 2012 as whole will be flat, TF1’s phase II of its optimisation plan will "focus on cutting operating expenses and increasing flexibility, via reduced overheads, productivity gains and optimisation of programming costs."
Phase II of this plan was initiated at the start of 2012, the group explains, and was "accelerated" from 1 July. Launched in 2007, Phase I has already unlocked €155 million of recurring savings from 2007 to 2011.
On Tuesday, the TF1 Group has posted for the third quarter of 2012, a net operating profit attributable to the Group showing a €5.9 million loss, down 28.2% compared to the previous period of 2011.
Over the first nine months of 2012, TF1 revenues rose 0.8% to €1,852.9 million, with TF1 ad revenues of €979.5 million, down 7.1% year-on-year. Operating profit amounted to €129.4 million, down 33.8 % and net profit attributable to the group fell 30% to €87.6 million.