TF1 hit by ad slump

French broadcaster TF1 reported a €6.3 million loss in Q1 and a 10% year-on-year decline in revenues thanks largely to a fall in ad revenues in what it called a “challenging economic and competitive environment.”

Group ad revenues fell 12% year-on-year to €368.7million, while revenue from other activities were also down 6% to €196.9m due mainly to weaker sales for its content and video business.

Overall, revenue fell to €565.6 million for the quarter and the firm made a net loss, compared to profits of €35.2 million for the same period last year.

In spite of this, TF1 said that its four free-to-air channels – TF1, TMC, NT1, and HD1 – attracted an audience share of 29.6% among individuals aged 4 and over, 1.1 points higher year-on-year.

Revenue for TF1’s pay TV business also remained roughly flat, down just 0.4% at €123.1 million. Within this, the Eurosport group posted revenue growth of 1.8% to €103.7m, driven mainly by increased advertising revenue. This offset a fall in revenues for TF1’s theme channels in France, said the firm.

“In a deeply unsettled economic and competitive environment, and in the absence of any present signs of recovery, the TF1 group is adjusting its 2013 full-year revenue assumption to €2.5 billion,” said TF1.