POST H1 2020 RESULTS
INVESTOR PRESENTATION
SUMMARY
1
2
3
4
5
OVERVIEW OF TF1 GROUP PROFILE AND FRENCH MEDIA MARKET (P.3)
H1 2020: THE TF1 GROUP HAS DEMONSTRATED ITS HIGH REACTIVITY TO FACE THE CRISIS (P.10)
H1 2020: FINANCIAL RESULTS (P.22)
OUTLOOK (P.31)
APPENDIX (P.35)
2
Overview of TF1 group
1 profile and French
media market
3
TF1 Group : Achieving a more balanced portfolio by diversifying the model with content production and digital
TV | ||||||||||
CONTENT PRODUCTION | BROADCASTING | DIGITAL | ||||||||
DRAMA | FTA CHANNELS | PUBLISHERS | ||||||||
THEME CHANNELS
DOCUMENTARIES ANIMATION
BRAND SOLUTIONS AND SERVICES
OTHER BROADCASTING ACTIVITIES
ENTERTAINMENT/ | ||
TALK SHOWS | TV MOVIES | SOCIAL E-COMMERCE |
4
French people nearly watch 4 hours of TV a day with a sharp increase since the beginning of the lockdown
04:10 | 04:01 | |||||||
03:47 | 03:54 | 03:46 | 03:47 | 03:48 | 03:47 | 3:56 | ||
03:44 | ||||||||
03:59 | 03:55 | 03:35 | ||||||
03:35 | 03:47 | 03:45 | 03:42 | 03:46 | 03:42 | 03:30 | 3:30 | |
03:16 |
4+ | W<50 PDM | ||||||||||||||||||||||||||
H1 2010 | H1 2011 | H1 2012 | H1 2013 | H1 2014 | H1 2015 | H1 2016 | H1 2017 | H1 2018 | H1 2019 | H1 2020 |
Daily reach for TV
TV | Radio | Internet* |
3:56 1:592:34
4:34 during lockdown**
Daily reach
78% | 44.9m people | 55% | 31.7m people |
Source: Médiamétrie - Médiamat TV - H1 2020 / Radio : Q1 2020 / Internet: end of May 2020 - 4+ | |
* Internet Surf time only | 5 |
** 16 March -10 May 2020 - 4+ |
France is still underinvested in TV advertising
AD TV MARKET | 2019 |
(PER INHABITANT) |
74£
62€
55€
51€
43€
Source: IREP (France)/ Exchangewire (UK), Vaunet Market (Germany), El Pais (Spain), Publieurope (Italy)
6
French net advertising market
Evolution of TV and digital advertising market (€ billion)
Digital (excl. search and others)
TV (incl. digital TV since 2017)
2,2
1,9
0,5 | 0,5 | 0,6 | 0,6 | 0,8 | 0,8 | 1,1 | 1,2 |
0,5 |
2,6
Media net ad revenue (€bn)
DIGITAL
Search
Display
Social
Others
TV (incl. digital TV)
PRESS
OUTDOOR ADVERTISING
2018 2019
5.2 5.9
2.3 2.5
- 1.2
- 1.4
0.7 0.8
3.4 3.4
2.2 2.1
1.3 1.3
3,3 | 3,1 | 3,4 | 3,5 | 3,3 | 3,2 | 3,2 | 3,2 | 3,3 | 3,3 | 3,4 | 3,4 |
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: IREP
RADIO
CINEMA
TOTAL
0.7 0.7
0.1 0.1
12.9 13.5
7
Best audience share in Europe for the TF1 channel
Largest market share of any private
sector European TV channel
(% 2019 audience share of commercial target)
22.0 %
15.9 %
14.4 %
13.3 %
12.1 %
Unrivalled lead in Europe over #2
(% 2019 audience share of commercial target)
22.0 %
14.7 %
15.9 %
12.1 %
12.1 %
9.6 %
13.3 %
11.4 %
14,7 %
14.4 %
-
VS
CHALLENGER
+7.3 PT
+3.8 PT
+2.5 PT
+1.9 PT
+0.3 PT
Source: Médiamétrie (France) - W<50PDM / Eurodata TV - BARB - Kantar Media (UK) - 16-44 yo /
Eurodata TV - AGB - GFK (Germany) - 14-49 yo / Kantar Media (Spain) - 18-59 yo ABCD inhab. Cities > 10,000 inhab. /8 Eurodata TV - Auditel - AGB Nielsen (Italy) - 15-64 yo
Positive impacts of changes in regulation making us confident for the future
Capacity to produce french | ||||
New corporate | drama with dependent | |||
Co-production | tax rate | producers | ||
Shares granted | (33% 25% in 2022) | (26% 30%) | ||
May 2016 | Dec. 2017 | Jan. 2019 | ||
Feb. 2017 | Dec. 2018 | |
Relief from | • New media chronology more | |
regulation of | favorable to broadcasters | |
sponsorship | • Cancellation of 3 taxes by | |
2020 | ||
Aug. 2020
Decrees authorizing:
- Addressable advertising
- Advertising of cinema
- Broadcasting movies on TV on additional days
9
2 | H1 2020: The TF1 group has | |
demonstrated its high reactivity to | ||
face the crisis | ||
10
H1 2020 highlights
DURING THE COVID-19 CRISIS, THE TF1 GROUP HAS DEMONSTRATED ITS ADAPTABILITY AND STRONG REACTIVITY
- Strong ratings thanks to editorial choices meeting the public's expectations
- Significant downsizing of the programming costs offsetting over 50% of the decrease in advertising revenues
- Efficient management of the health crisis by protecting employees health, adapting working methods (work from home and part-timework) and enabling the news activity to proceed
THE TF1 GROUP IS FULLY OPERATIONAL AND READY TO BENEFIT FROM RECOVERY
- Gradual slowdown in the decline of the advertising market since the beginning of June
- Strategic decision to keep fresh and premium programming for the last four months of 2020
- Strong reactivity from Newen in resuming all shooting as early as possible
- Sound financial position with low debt and access to available bilateral credit facilities
11
A winning, multi-channel strategy
Clear leader among W<50PDM
32.6% | 32.6% | 31.9% | ||
10.4%
22.5% | 22.0% | 21.5% |
2018 | 2019 | H1 2020 |
High level among 25-49year-olds
29.6% | ||||
29.3% | 29.4% | |||
9.7%
20.1% | 19.8% | 19.9% |
2018 | 2019 | H1 2020 |
Source: Médiamétrie - Médiamat | 12 |
The group creates a unique bond through its broad content offer
- High level of TV viewing time since March (3 hrs 56 mins in H1 2020 ; +26min yoy)
- Audience share of Ind. 25-49 y/o remained at a high level in H1 2020 at 29.6 % (stable yoy)
- High and quick reactivity on the grid management with more family-oriented programmes
POPULAR CULT COMEDIES | FLAGSHIP ENTERTAINMENT BRANDS | INTERNATIONAL FAMILY FRANCHISES | ORIGINAL US SERIES |
Harry Potter
@Warner Bros Ent. Harry Potter Publishing Rights JK Rowling
8.0 million TV viewers | Record season with | 7.2 million TV viewers on | 5.2 million TV viewers on |
(Ranked no.1 during lockdown | 6.8 million TV viewers on | average for the 8 movies | average for the 1st season |
excl. news) | average | 47% of W<50PDM | 35% of W<50PDM |
42% of W<50PDM |
Source: Médiamétrie - Médiamat | 13 |
Leadership in news consolidated
- Daily news shows extended in order to provide comprehensive and rigorous coverage of the health crisis
- Enhanced leader status thanks to TF1's ability to attract top politicians and health experts
6.3m TV viewers on average | 6.7m TV viewers on average | 6.8m TV viewers on average | 1.3% audience share for Ind. aged 4+ (+0.3 pts yoy) |
+1.3m TV viewers vs H1 2019 | + 1.3m TV viewers vs H1 2019 | + 1.4m TV viewers vs H1 2019 | No. 2 news channel for Ind. aged 4+ |
Source: Médiamétrie - Médiamat - H1 2020 | 14 | ||
MYTF1 leadership confirmed, one year after relaunch
- Around 21 million active user accounts
- + 47% video views* on OTT
- Catch-upTV enhanced by AVOD offer attracting young people through successful content like manga Naruto, US series 90210 or French soap Sous le Soleil
*Sept 2019 to June 2020 vs Sept 2018 to June 2019 - excluding app FAI and news | 15 |
Significant reduction of the programming costs
- Revisited formats for key franchises with stretched episodes and no-public attendance
- High number of reruns both on TF1 and DTT channels
- Extended daily news shows at no additional cost
- Extra supply of movies at an optimized price
- Savings of €107m for the first 6 months of 2020…
- … offsetting 52% of the drop in broadcasting advertising revenues
16
Strong reactivity from
- Understanding the impacts of the crisis in the different sectors
- Accompanying our historical clients during the crisis
- Attracting new advertisers (+106 in H1 2020 yoy)
- Motivating advertisers to return to TV in the last 4 months of 2020
TF1 Pub organized webinars with | New advertisers in H1 2020 |
advertisers to help them during the crisis |
17
After lockdown, a gradual return to TV advertising by sector
Based on TV ad revenue trends through H1 2020 | 18 |
Early rebound of Newen activity after lockdown
- Some shooting continued with social distancing rules observed (the daily programme Le Magazine de la santé and the famous Belgian TV quiz show Blokken)
- Shooting restarted as early as possible (since mid-May for the 2 French daily soaps Demain Nous Appartient and Plus Belle La Vie)
- Book of orders remaining at a high level at more than 1,500 hours
- Additional sales from the TF1 Studio and Reel One catalogues
© Fabien Malot
Le Magazine de la santé | Shooting restart of | 19 |
Demain Nous Appartient |
Strong attractiveness of Unify brands
- Highly relevant content on the web with Doctissimo on health and Marmiton on cooking
- 437m visits to Marmiton website in H1 2020; +56% yoy
- Significant reduction of advertising spend in digital and programmatic due to the crisis…
- … but resilience of the social e-commerce business
- Development of synergies with TF1 channel
- Opportunistic TV advertising campaigns for My Little Box, Gambettes Box and Beautiful Box on TF1
- Editorial partnership between News and Doctissimo
20
The TF1 group has supported a variety of good causes during the health crisis
SOLIDARITY
- Identifying hospital's urgent needs and putting together product and service offers from companies
- Raising funds to support health workers, patients, vulnerable people and medical research
- Donating game show gains to charities involved in health care, fighting violence against women and food distribution
NEWS | FREE TV CAMPAIGNS | DEDICATED TV PROGRAMMES |
21
3 | H1 2020: financial | |
results | ||
22
Consolidated revenue
(€M) | H1 2020 | H1 2019 | CHG.€M | CHG.% |
BROADCASTING | 683.3 | 890.8 | (207.5) | -23.3% |
ADVERTISING REVENUE | 586.1 | 791.4 | (205.3) | -25.9% |
OTHER REVENUE | 97.2 | 99.4 | (2.2) | -2.2% |
STUDIOS & ENTERTAINMENT | 131.8 | 168.8 | (37.0) | -21.9% |
PRODUCTION / SALE OF AUDIOVISUAL RIGHTS | 107.8 | 110.5 | (2.7) | -2.4% |
REVENUE FROM GAMES, MUSIC, LIVE SHOWS & HOME SHOPPING | 24.0 | 58.3 | (34.3) | -58.8% |
UNIFY | 68.4 | 85.6 | (17.2) | -20.1% |
WEB PUBLISHING (DIGITAL CONTENT, SOCIAL E -COMMERCE) | 53.5 | 67.7 | (14.2) | -21.0% |
OTHER REVENUE (DIGITAL MARKETING) | 14.9 | 17.9 | (3.0) | -16.8% |
TOTAL REVENUE | 883.5 | 1,145.2 | (261.7) | -22.9% |
Excluding the effect of changes in structure, H1 2020 revenues dropped by -22.6%
Under IFRS 16 norm | 23 |
H1 2020 trends in gross ad spend for TF1 group channels
Source: Kantar media, H1 2020 vs H1 2019. Gross advertising spend (excluding sponsorship) for the 5-free-to-air channels.
24
Cost of programmes
25
Current operating profit per segment
Under IFRS 16 norm | 26 |
Consolidated income statement
Under IFRS 16 norm | 27 |
Balance sheet
Under IFRS 16 norm | 28 |
Trends in net cash position H1 2020 (excluding the impact of IFRS 16*)
29
Covid-19 impacts
- Negative impact on H1 2020 results
- Total revenue drop of around €250m
- EBIT drop of around €100m
- Low visibility for the coming months
- Withdrawal of our objectives for 2020 and 2021
30
4 Outlook
31
Strong line-up to seize opportunities in back-to-school period
- New seasons of key franchises: Mask Singer, Koh Lanta, etc.
- TV premieres for French hit movies and international blockbusters: Le Sens de la Fête, A star is born, etc.
- Brand new mini series: Grand Hotel, HPI, Pourquoi je vis, etc.
- New hosts on LCI
KEY FRANCHISES | FRENCH DRAMA | CINEMA |
@Christophe Chevalin - TF1 | ©Thibault Grabherr /Itinéraire Productions/TF1 |
2nd season on TF1 | HPI, new series on TF1 | More than 3 million box | Darius Rochebin and |
office entries | Eric Brunet |
32
Many new productions in the pipeline for Newen
- Strong line-up of shooting for H2 2020 with originals like Grand Hotel (TF1) and Opera (OCS)
- 2 new daily soaps Ici tout commence (TF1) and Lisa (VTM) confirming Newen know-how in such format
- More than 10 production projects for platforms like the movie Ferry and the series Undercover (season 2) for Netflix both produced by De Mensen
Lisa
© VTM
Undercover (season 2)
© Nyk Dekeyser
33
Salto, a platform with local content on an unprecedented scale
The biggest shop window for French creative talent
- 15,000 hours of content across all genres from day 1
- 20,000 hours by the end of the year
- First-runcontent every month
- Recommendation system fronted by celebrities and influencers
Commercial launch before end of 2020
- Platform beta test in July 2020
- Launch in fall 2020
34
5 Appendix
35
2019: Key results
Under IFRS 16 norm
€m | FY 2019 | FY 2018 | Chg. €m | Chg. % |
Consolidated revenue | 2,337.3 | 2,288.3 | 49.0 | 2.1% |
TF1 group advertising revenue | 1,658.1 | 1,662.2 | (4.1) | -0.2% |
Revenue from other activities | 679.2 | 626.1 | 53.1 | 8.5% |
Consolidated revenue | 2,337.3 | 2,288.3 | 49.0 | 2.1% |
Broadcasting | 1,774.2 | 1,763.7 | 10.5 | 0.6% |
o/w Advertising | 1,567.4 | 1,588.2 | (20.8) | -1.3% |
Studios & Entertainment | 390.0 | 408.6 | (18.6) | -4.6% |
Digital (Unify) | 173.1 | 116.0 | 57.1 | 49.2% |
Cost of programmes | (985.5) | (1,014.2) | 28.8 | -2.8% |
Current operating profit | 255.1 | 198.8 | 56.3 | 28,3% |
Current operating margin | 10.9% | 8.7% | - | 2.2 |
Broadcasting | 185.5 | 151.0 | 34.5 | 22.8% |
Studios & Entertainment | 57.9 | 35.5 | 22.4 | 63.1% |
Digital (Unify) | 11.7 | 12.3 | (0.6) | -4.9% |
Operating profit | 255.1 | 176.8 | 78.3 | 44.3% |
Net profit attributable to the Group | 154.8 | 127.4 | 27.4 | 21.5% |
36
2019: Cost of programmes
(€M) | FY 2019 | FY 2018 | CHG.€M | CHG.% |
DRAMA / TV MOVIES / SERIES / PLAYS | -331.8 | -348.2 | (16.4) | -4.7% |
VARIETY / GAMESHOWS / MAGAZINES | -271.4 | -238.5 | 32.9 | 13.8% |
FILMS | -148.3 | -159.0 | (10.8) | -6.8% |
NEWS (INCL. LCI) | -134.7 | -136.7 | (1.9) | -1.4% |
SPORTS | -87.4 | -118.9 | (31.4) | -26.4% |
CHILDREN'S PROGRAMMES | -11.8 | -13.0 | (1.1) | -8.7% |
TOTAL | -985.5 | -1,014.2 | (28.8) | -2.8% |
37
Trends in net cash position 2019 (excluding the impact of IFRS 16*)
€M
416.65.3
-22.1-32.3
-245.0
-27.5 | ||||||||||||||||||||||||||||||||||
-132.6 | ||||||||||||||||||||||||||||||||||
-84.0 | -4.7 | |||||||||||||||||||||||||||||||||
-126.3 | ||||||||||||||||||||||||||||||||||
Cash position | Operating | Decrease | Cost of | Change in | Net capital | Acquisitions/ | Dividends, shares | Others*** | Cash position | |||||||||||||||||||||||||
at start of | cashflow** | in lease | net debt | operating working | expenditure | disposals | Buyback and | at end of period | ||||||||||||||||||||||||||
period | obligations | capital needs | stock -options | |||||||||||||||||||||||||||||||
Trends in | ||||||||||||||||||||||||||||||||||
256.7 | 360.4 | -20.2 | 6.0 | 16.9 | -210.4 | -361.5 | -73.1 | -2.3 | -27.5 | |||||||||||||||||||||||||
NCP 2018 |
*Excluding lease obligations | |
**Cash flow after income from net surplus cash/cost of net debt, interest expense on lease obligations and income taxes paid | 38 |
*** Including acquisition of financial assets, net change in borrowings and cost of net debt | |
Philippe DENERY - CFO pdenery@tf1.fr
Stéphanie LAVAL - Head of Investor Relations slaval@tf1.fr
Anaïs AMGHAR- Investor Relations
aamghar@tf1.fr
IR team
comfi@tf1.fr
TF1 1 Quai du Point du Jour 92 656 Boulogne-Billancourt Cedex France
https://www.groupe-tf1.fr/en
39
Attachments
- Original document
- Permalink
Disclaimer
TF1 - Television Francaise 1 SA published this content on 25 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2020 15:14:09 UTC