PARIS (Reuters) – TF1 on Thursday announced an 8.9% decline in ad revenue in the third quarter, due in part to an adverse base effect.
The French television group stressed that this reduction was also due to digital advertising activities with the sale of Livingly Media and Gofeminin.de. Thus, the group’s advertising revenue for this period fell to 327.9 million euros from 360 million a year earlier.
Consolidated revenue in the third quarter was 553 million euros (+6% yoy), thanks in part to the growth of Newen Studios, the group’s production subsidiary behind programs such as Versailles and Plus a Wonderful Life.
The Bouygues group announced last month it was dropping a plan to merge its subsidiary TF1 with the M6 group because it failed to overcome the Competition Authority’s resistance. This operation should allow the two groups to better face the increasingly fierce competition from American streaming platforms.
TF1 spent a total of €25 million in 2021 and 2022 working on this merger, chief financial officer Philippe Denery told reporters during a conference call.
A week after this setback, Rodolphe Belmer – the former head of Canal + (Vivendi group) and Eutelsat – was appointed head of TF1 with the same goal: to fight Netflix and Disney, who intend to increase further pressure on them by launching discount, promotional offers.
TF1 did not provide financial targets for the year.
(Report by Mathieu Rosemin, French version by Jean-Michel Belo, edited by Jean-Stephan Brosse)