TF1 net profit up four-fold
February 11, 2022
From Pascale Paoli-Lebailly in Paris
Ahead of the potential TF1-M6 merger, French commercial broadcaster TF1 has multiplied its 2021 net profit by four compared to the 2020 pandemic year to €225.3 million versus €78.1 million, and achieving 45 per cent growth compared to 2019.
The group posted consolidated revenue up 16.6 per cent year-on-year to €2.427 billion, and increasing by 3.3 per cent compared to 2019.
“This significant increase in revenue and profitability was driven by the Media business and the substantial contribution of complementary activities developed by the Group, notably content production at Newen Studios and distribution,” says the broadcaster.
The Newen Studios segment posted 2021 revenue of €335.6 million, up 43.4 per cent year-on-year. Stepping up its international growth strategy, Newen Studios’ activities outside France account for 47 per cent of the total revenue.
In terms of audience share, TF1 Group’s share among advertising targets rose to a very high level. (33.5 per cent audience share of women under 50, 30.2 per cent among the 25-49 year-olds), driven by TV series such as HPI (up to 12.4 million viewers), sport and entertainment shows, the group advertising revenue reaches € 1.694 billion. This is a year-on-year rise of €211.3 million and 14.2 per cent, and a 2.6 per cent increase compared to 2019.
The revenue from other activities amounted to €732.5 million, a sharp rise of €134.1 million year-on-year (+22.4 per cent), and up +6.7 per cent versus 2019.
On a full-year basis, the current operating margin was 14.1 per cent (12.9 per cent excluding the booking of €29.5 million in tax credits granted under the pandemic2), versus 9.1 per cent in 2020 and 10.9 per cent in 2019.
The group’s programming cost reached €981 million, reporting a decline of €30.6 million versus 2019, but was up on end-December 2020. TF1 outgoings were predominantly on successful drama and entertainment content.
TF1 didn’t give any financial outlook for 2022, but said in conclusion that “the proposed merger between the TF1 and M6 groups, which seeks to address the industry’s far-reaching changes, continues on schedule with the initially announced timeline”. Final completion of the transaction is still subject to approval by the competent authorities (Antitrust Authority and ARCOM).