TF1 predicts contraction of the ad market in 2014
Pascale Paoli-Lebailly | 19-02-2014
French private broadcaster TF1 Group has posted 2013 consolidated revenues at €2.47 billion, down 5.7%, with advertising revenue at €1.6 billion, down 5.4%.
The broadcaster blames the results on "tough economic conditions and intense competitive pressure". Underlining the "gloomy economic climate, with no signs of recovery and visibility", the group predicts "the net television advertising market could see a contraction in 2014".
Last year, TF1 revenue from other activities fell 6.4% to €791.3 million while operating profit rose 6% to €223.1 million compared to 2012.
For the year ended 31 December 2013, revenue for the pay-TV segment was down 5.7% at €530.7 million.
The current sale of Eurosport International to Discovery Communications didn't impact the 2013 annual results.
Under phase II of the optimisation plan launched in 2012, TF1 Group generated €41 million of recurring savings last year, including €22 million on the cost of programmes at TF1.
Such savings take to €56 million the total recurring savings achieved since phase II of the plan started, out of the total commitment of €85 million to be met by the end of 2014.
In a broader competitive environment, TF1 Group is happy that it managed to "increase its audience share by 0.5 point (up 1.8%) reaching 28.9% among those aged four and over", making it "France's leading broadcaster ".