TF1 1Q results plunge
Pascale Paoli Lebailly
France’s leading private media group TF1 announced net profits down 91% for the first three months of this year to €6 million compared with €70 million one year before.
Operating result was a €12 million loss while total revenue fell back 18% to €538 million. This included TF1 ad revenue down 27% at €321 million. In a statement, the group said that “the first three months of 2009 were affected by a fall in advertising revenue and resilience from diversification activities,” (up 2% at €217 million).
For the rest of the year, and the guidance for consolidated revenue, TF1 Group has revised “its working hypothesis from -9% to around -13%.”
TF1 said that cost cuts in the first three months amounted to €14 million, including a €7 million reduction in programming costs (€228 million). The cost cutting plan will continue and will even increase from the €60 million formerly announced to €70 million.
The same day, TF1 Group announced it was talking with film production company UGC about a co-investment project for production and acquisition of French, European and international theatrical movies .