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Latest Satellite News Discussion, Update Ad revenue squeeze at TF1 and M6 at General Satellite News forum; Ad revenue squeeze at TF1 and M6 Pascale Paoli Lebailly French leading private network TF1s ad revenues fell substantially, down ...

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Thumbs up Update Ad revenue squeeze at TF1 and M6 - 06-May-2009, 15:50

Ad revenue squeeze at TF1 and M6

Pascale Paoli Lebailly

French leading private network TF1s ad revenues fell substantially, down 27% to 321 million during the first quarter of 2009. The networks total revenues dropped 18% to reach 538 million compared to the same period of last year.

According to TF1, and despite satisfactory audiences (26.3% audience share in April 09 vs 27.3% in April 08), the falls are mostly due to the worsening of the ad market, a pressure on prices as well as the impact of the new tax on complementary ad revenues. Private networks have been called to help compensate PSB funding after ad ban.

As a consequence, TF1 already warns financial analysts that its operating income over this period will be between 10 million and 15 million while net profit will set between 5 million and 10 million instead of the 16 million previously forecast.

Also detailing its first quarter results, M6 posted ad revenues down 11% compared with the same quarter the previous year, at 146.9 million. Consolidated sales for the group amounted to 327.4 million, down 0.6%. That included 24.5 million in ad revenues for digital channels and other media, up 22.5%. Non-advertising revenues were up 9.6%.


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