France’s major commercial broadcasting network TF1 is finding its advertising income in a lacklustre state, according to a report from equity analysts at Deutsche Bank. The broadcaster is not being helped by a Europe-wide drift from broadcasting to online.
The bank says with January and February “relatively flat” advertising numbers now in, the position continues 2017’s lacklustre market and it predicts that 2018 points to a rise of just 1-2 per cent in ad-market growth, and further pressure on TF1’s overall market share.
The bank is concerned that TF1’s non-programming costs rose during the second-half of last year (by €22 million) and mostly attributable to higher staff costs.
In order to balance its books TF1 is expected to spend around €960 million (excluding sport) this year. And staying flat next year and only rising to about €969 million for 2020.