TF1 sees Q3 revenues slide

French commercial broadcaster TF1 saw its stock slide after posting reduced Q3 revenues.

TF1 posted Q3 revenues of €469.4 million, down from €492 million for the comparable period. Advertising revenue for the group fell from €339.3 million to €322.4 million.

The group’s channels took in revenues of €354.8 million, down from €363.4 million, while revenues from studios and entertainment fell from €96 million to €76.5 million. The group’s digital Unify arm saw revenue grow from €32.6 million to €38.1 million, on the other hand.

Operating profit for Q3 was €21.4 million, up from €19.1 million, and net profit was down from €15.6 million to €10.5 million.

The group did reduce the cost of programmes over the period, from €226.6 million o €213.5 million, thanks in large part to the impact last year of the costs of the football World Cup and the women’s World Cup.

However, TF1 did also point to its strategic reinvistmwnt in programming in the fourt quarter, focusing on World Cup rugby, drama series Le Bazar de la Charité and entertainment show Mask Singer.

TF1 pointed to its more solid performance over the nine months to September, with revenues over the full period up 2.5%, boosted by its digital offerings, with Unify contributing growth from its ecommerce activities. The group in September put in place a single advertising unit, Unify Advertising, which will offer digital advertising to complement TF1’s TV advertising.

The group reiterated its targets, aiming for a double-digit operating margin this year.

TF1 aims to achieve total programming costs of €990 million for the 2019-20 period, with a target of revenues of €250 million from Unify by 2021 alongside an EBITDA of margin of 15%. It has also committed to achieve better profitability for capital deployed.