TF1, M6 profits down; €92.2m Salto hit
February 15, 2023
From Pascale Paoli-Lebailly in Paris
TF1 and M6 have both posted Full Year 2022 numbers which show a decline in profit mainly attributed to their failed merger and expected closure of joint streaming platform Salto, operated with France Télévisions.
M6 reported 2022 consolidated revenue at €1.3 billion, down 2.4 per cent year on year and an EBITA at €334.4 million (down 2.4 per cent). M6’s net profit decreased by 40.9 per cent to €165.9 million, compared to €280.8 million in 2021. The 4.7 per cent decline in global advertising revenues (down 5.1 per cent for television) was “worsened by the economic climate but partly offset by the growth in non-advertising revenues (up 8 per cent),” according to M6.
M6 also reported the impact of streaming platform Salto amounting to € 46.1 million in 2022. “Salto currently attracts nearly one million subscribers but once again recorded a significant operating loss of €72.3 million in 2022 (€24.1 million for M6 share),” said M6.
The three partners of the platform also calculated the cost of the liquidation of the company as €66 million (€22 million for the M6 share). As M6 Group plans to keep investing in streaming, Salto’s impact will also weigh on technology subsidiary Bedrock, whose share of the net loss stood at €7.9 million in 2022.
At TF1, despite a 3.3 per cent growth of the consolidated revenue (€2.5 billion), of which revenues from Newen Studios went up 27 per cent to €428 million, Group operating profit was €301.2 million, down 7.9 per cent.
Advertising revenue amounted to €1.66 billion, down €25 million.
Following a change in TF1 management, on February 13th, and the nomination of Rodolphe Belmer as Chairman and CEO, replacing Gilles Pélisson who has resigned from his role as Chairman, TF1 aims to continue developing linear with event content, franchises, series and family formats, as well as underpinning its non-linear and digital development.
TF1 aims to establish MyTF1 (26 million monthly catch-up) as the first “Free-to-View streaming service in the French market”.
Both groups are set to attend hearings by TV regulatory body Arcom regarding the renewal of TF1 and M6 DTT frequencies which expire in May 2023.
French media entrepreneur Xavier Niel, owner of telecom group Iliad (Free) will also be in attendance. He is interested in acquiring M6 DTT frequency and has developed a project called SIX.