TF1 to accelerate cost-cutting plan

French commercial broadcaster TF1 Group has said it will accelerate its plan to rationalise its operations and cut costs next year in the expectation that poor economic conditions will result in a drop in about 3% in revenues.

TF1 plans to limit costs of the main TF1 channel to €900 million next year, down from €935.5 million this year.
The company has just reported full-year numbers of 2012, which saw a flat year-on-year revenues of €2.62 billion, with a 1.7% dip in the fourth quarter to €781 million.

The group turned in a net profit of €136 million, down 25.6% The main TF1 channel saw a 6.7% full-year decline to €1.4 billion, but revenues from other activities grew by 9.2% to €1.2 billion, including a boost from its consolidation of Metro France through the resale of Rugby World Cup rights. While advertising revenues overall fell, the group saw increased advertising from its digital channels and Eurosport International, and from online video sales. Eurosport International, which TF1 is selling to Discovery Communications, turned in revenues of €406 million, up 10.4%.

During the year, TF1 consolidated its position as the country’s most popular channel, with a 22.7% share amongst those aged four and over.