Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Television Francaise 1 SA (FRA:FSE, Financial) strengthened its audience leadership with increases in both linear and streaming, achieving a 34.6% audience share among women under 50 and 31.5% among individuals aged 25 to 49.
- The Group's advertising revenue increased by more than 7% year-on-year, driven by strong performance in both linear and digital platforms.
- TF1+ launched successfully, with a 40% increase in advertising revenue, reaching EUR65 million in the first half of 2024.
- The Group maintains a strong financial position with a net cash of EUR446 million at the end of June 2024, up EUR81 million compared to a year ago.
- Television Francaise 1 SA confirmed its growth potential and digital acceleration strategy, with TF1+ establishing itself as a leader in terms of reach, recording 35.4 million streamers in May.
Negative Points
- Current operating margin from activities decreased to 11.7% compared to 14.7% in H1 2023, reflecting increased programming costs and non-recurring expenses.
- Newen Studios revenue declined by 10% year-on-year, with expectations for activity skewed to the fourth quarter.
- The Group's net cash position decreased by approximately EUR60 million from the end of December 2023, partly due to a dividend payment of EUR116 million.
- There was a slight deceleration in digital revenue growth in Q2, although it was not attributed to cannibalization from linear advertising.
- The non-renewal of the DTT license for a competitor channel is expected to have only a minor impact on Television Francaise 1 SA's market share.
Q & A Highlights
Q: Could you provide an indication of advertising trends for the upcoming months?
A: Rodolphe Belmer, CEO, stated that advertising demand remains solid, with no signs of deceleration. The consensus for the French advertising market in 2024 is around a 3% increase, and TF1 concurs with this estimate.
Q: Was there a slowdown in digital revenue growth for TF1+ in the second quarter, possibly due to live events like EURO 2024?
A: Rodolphe Belmer explained that digital revenue growth was strong at 40% year-on-year, with no cannibalization from linear to digital. The strategy is to capture a share of the digital advertising market, which is growing at 15% annually.
Q: With the non-renewal of the DTT license for C8, could TF1 channels like TMC benefit in terms of market share?
A: Rodolphe Belmer noted that while there might be a small upside for TMC, the impact on the group level would be minor due to the relatively small ad inventory liberated by C8's exit.
Q: Is there still an expectation for a pickup in Newen Studios' activity in the second half of the year?
A: Pierre-Alain Gerard, CFO, confirmed that Newen Studios' activity is expected to be skewed towards the second half, particularly the last quarter, as initially projected.
Q: How does TF1 plan to maintain its growth in digital and streaming?
A: Rodolphe Belmer highlighted that TF1+ will continue to expand its content catalog and distribution, aiming to increase ad load and improve CPM. The platform's success in France will be leveraged for expansion into other French-speaking markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
