Impacted by the Covid-19 crisis and a decline in the ad market, French commercial broadcaster TF1 group has posted a net profit result down to €55 million in 2020 instead of €154.8 million the previous year.
Consolidated revenue reached €2.082 billion, down 11 per cent and the current operating profit margin established at 9.1 per cent to €190 million. TF1 posted a group advertising revenue down 10.2 per cent year-on-year to €1.44 billion. The results also include revenue down €13.4 million to €159.7 million of its digital segment Unify. However, the €152 million cuts in cost of programmes (€833.2 million) helped the group to save its annual net profit.
Studios & Entertainment segment revenue was €309.2 million, down €80.8 million year-on-year and was particularly hit particularly by the suspension of production in April and early May, and by the cancellation or postponement of live shows, concert tours and cinema releases.
“In 2020, the TF1 Group confirmed its position as an essential and responsible player in content,” commented Gilles Pélisson, TF1 Chairman and CEO. “In a year marked by a health crisis that strongly affected us, our results demonstrate the commitment of our employees, the agility of the Broadcasting division (€1.61 billion, down €161.4 million) and the solidity of our model. We are pursuing our dynamic of development and innovation in content, production and digital.”
Pélisson says TF1 has sustainable growth momentum, with opportunities in both content and digital, but has yet to release its 2021 objectives owing to a lack of visibility on March.
In the same time, the group has announced entering into exclusive talks with European manufacturer Jumbodiset over the sale of its game unit TF1 Games et Dujardin, which includes brands such as 1000 bornes, Cochon qui Rit and Burger Quiz.
TF1 says it is seeking to refocus on its own content brands and activities developed within TF1 Entertainment, such as licensing and brand content.