Television Francaise 1 Sa · EURONEXT:TFI
Television Francaise 1 Sa — Tf1 — H1 2012 Earnings Presentation
31 slides from Television Francaise 1 Sa's earnings presentation, Jul 26, 2012
Slide 1: 2012 First-Half Results Analysts Meeting
2012 FIRST‐HALF RESULTS ANALYSTS MEETING 26 July 2012
Slide 2: 1. Activity in First-Half
1. ACTIVITY IN FIRST‐HALF FIRST HALF 2012 2 H1 2012 FINANCIAL ACCOUNTS 2. 3. OUTLOOK 4. QUESTION & ANSWER 2
Slide 3: Plurimedia Investments Down in Early 2012
PLURIMEDIA INVESTMENTS DOWN IN EARLY 2012 Gross plurimedia investment (€m) – Jan‐June 2012 vs 2011 +3.8% TOTAL GROSS PLURIMEDIA PLURIMEDIA: +0.3% +0 3% AT €13,585 €13 585 m ‐1.1% Net H1 2012 trend Stability at best in TV market 4,455 +3.6% Negative when combined with other media 3,754 ‐2.4%* ‐7.3% 7
Slide 4: TV Still Buoyed by TNT
TV STILL BUOYED BY TNT Trend in gross TV investment (€m) – Jan‐June 2012 TOTAL TV: +3.8% at €4,455 m TOTAL Freeview TV: ‐0.5% +4 4% at €4,034 +4.4% €4 034 m Trend +1.5% +15.6% ‐13.6% 2,684 ‐1.9% 1 350 1,350 ‐1.0% 1 0% = 421 National TV DTT Cab Sat Source: Kantar média – excl. TV sponsoring – Jan‐Jun
Slide 5: Ad Market Under Pressure from Economic Environment
AD MARKET UNDER PRESSURE FROM ECONOMIC ENVIRONMENT Quarterly trend in volume of advertising broadcast on TV 20,0% 19.3% I Incumbent b t TV DTT 13.5% 10 0% 10,0% 8.3% 4.4% 4.8% 3.6% 1.6% 0,0% -7.5% -8.1% -10,0% -9.8% -9.2% -9.2% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 STRONG PRESSURE ON PRICE
Slide 6: TF1 Supported Its Customers in H1 2012
TF1 SUPPORTED ITS CUSTOMERS IN H1 2012 NET REVENUE H1 2012 VS. H1 2011: ‐5.9% Q1 2012 vs. Q1 2011 Q2 2012 vs. Q2 2011 H1 2012 vs. H1 2011 1.1% 1.5% 1.9% ‐3.9% ‐7.6% ‐5.9% Gross revenue Net revenue Source: Kantar média 6
Slide 7: Monthly Trend in TF1 Audience Share 4+ in 2012
MONTHLY TREND IN TF1 AUDIENCE SHARE 4+ IN 2012 23.3% 23.6% 22.9% 22.3% 22.6% 22.6% 22.2% H1 2012: 22.7% December January February March April May June 2011 Q1 2012: 22.9% Q2 2012: 22.6% ‐ 5.4% ‐3.4% 3 4% TF1 AUDIENCE SHARE HAS FLUCTUATED AROUND 23% SINCE ANALOGUE SWITCH‐OFF Source : Médiamétrie – Mé
Slide 8: Trend in TF1 Audiences in Prime Time Access
TREND IN TF1 AUDIENCES IN PRIME TIME ACCESS Prime Time Access = 6 pm to 7.45 pm Audience Individuals aged 25‐49 Women <50 PDM* share (%) 27.0 22 9 22.9 26 8 26.8 21.9 22.0 21.9 .22,0 22.1 25.0 25.1 24.9 25.2 22.1 24.5 24.8 20.9 20.7 21.0 21.2 23.0 23.7 23.6 20.4 23.8 Janvier Février Mars Avril Janvi
Slide 9: TF1 the Clear Leader in High-Potential Slots
TF1 THE CLEAR LEADER IN HIGH‐POTENTIAL SLOTS Viewer numbers 6.4m Prime Time 3.8m 3.7m 3.3m Second Time 1.6m 2.0m 2 0m 3.3m Access 1.9m 2.0m Time slots: access (6 pm to 7.45 pm), prime time (8.45 pm to 10.30 pm), second time (10.30 pm to 00.30 am) / Source: Médiamétrie – Médiamat – H1 2012 9
Slide 10: Records in All Programme Types
RECORDS IN ALL PROGRAMME TYPES ENTERTAINMENT CINEMA SPORT Les Enfoirés: 13.3 m, record for the show Gran Torino: 9 9.4 4mm, best audience for a film since Euro 2012: 12.9 m for Spain/Italy, / best audience ratings November 2010 for a football match since June 2006, all channels NRJ Music Awards: 7.0
Slide 11: Innovation-Driven TF1 Programmes
INNOVATION‐DRIVEN TF1 PROGRAMMES ` ALL DAY EVENING ACCESS AFTERNOON MORNING 9.3 m, best score for Saturday Peak 9.7 m viewers and more than 7 m Clear leader in ad targets (29% audience Ratings boost in morning slot entertainment show since Dec 2006 every evening share women <50 pdm) (30% growth on w
Slide 12: 360° Strategy for UEFA Euro 2012
360° STRATEGY FOR UEFA EURO 2012 Strong audience ratings Programming cost ` An average 8.3 m viewers for the 9 matches on TF1 ` 8 matches broadcast in Q2 2012 34% audience share individuals and 49% men 15‐49 ` Final broadcast in Q3 2012 (1 July 2012) ` Spain / Italy final: 12.9 m viewers TV ` Compet
Slide 13: 360° Strategy: A Record Half-Year
360° STRATEGY: A RECORD HALF‐YEAR ` INTERACTIVITY Strong performances by The Voice, Les 12 coups de midi ` VIDEO ON‐LINE TF1 no.1 in time spent per individual (1hr 59mins) ` CATCH‐UP The h Voice: 55 million ll videos d watched, h d 2.1 million ll reads d at D+7 ` LIVE DIGITAL 560,000 sessions for Fr
Slide 14: TMC and NT1 Confirm Audience Momentum
TMC AND NT1 CONFIRM AUDIENCE MOMENTUM 4 and over Women <50 PDM + 2.9% + 16.7% Audience share + 5.3% + 17.4% 35 3.5 36 3.6 H1 2011 3.8 40 4.0 H1 2012 2.7 2.1 2.3 1.8 ` TMC: o Fifth‐ranked channel in France for individuals and long‐standing DTT leader o Top two DTT audience ratings in 2012: peak of 2.
Slide 15: Moving Ahead on Other Activities
MOVING AHEAD ON OTHER ACTIVITIES DYNAMIC REINFORCED PAY TV CONSUMER SERVICES SERVICES Theme channels Eurosport International • Revenue up 10.1% • Revenue up 4.4% R • Revenue 19 8% up 19.8% • Non‐exclusive distribution • Audience rise for Group • Restructure underway • Brand growth • Sharp increase i
Slide 16: 2. H1 2012 Financial Accounts
1. ACTIVITY IN FIRST‐HALF FIRST HALF 2012 2 H1 2012 FINANCIAL ACCOUNTS 2. 3. OUTLOOK 4. QUESTION & ANSWER 16
Slide 17: Advertising Revenue Evolution
ADVERTISING REVENUE EVOLUTION €m H1 2012 H1 2011 Var. €m Var. % Consolidated revenue 1,301.2 1,277.6 +23.6 +1.8% Advertising revenue TF1 channel 713.2 757.8 ‐44.6 ‐5.9% Diversification revenue 588.0 519.8 +68.2 +13.1% Detail of the total advertising revenue TF1 Channel 713.2 757.8 ‐44.6 ‐5.9% Themat
Slide 18: TF1 Core Channel Programming Costs Evolution
TF1 CORE CHANNEL PROGRAMMING COSTS EVOLUTION €m H1 2012 H1 2011 Var. €m Var. % Total programming costs 476.5 423.6 +52.9 +12.5% One‐off sporting events 21.8 ‐ +21.8 ns Programming costs excl. one‐off sporting events 454.7 423.6 +31.1 +7.3% Entertainment 128.6 110.1 +18.5 +16.8% TV dramas / TV movies
Slide 19: Consolidated Income Statement (1/2)
CONSOLIDATED INCOME STATEMENT (1/2) €m H1 2012 H1 2011 Var. €m Var. % Consolidated revenue 1,301.2 , 1,277.6 , +23.6 +1.8% Total programming costs (476.5) (423.6) ‐52.9 +12.5% Total other charges (640 3) (640.3) (610 6) (610.6) ‐29.7 29 7 +4 9% +4.9% Depreciation and amortisation, provisions and (50
Slide 20: Consolidated Income Statement (2/2)
CONSOLIDATED INCOME STATEMENT(2/2) €m H1 2012 H1 2011 Var. €m Var. % Operating profit 133.9 186.5 ‐52.6 ‐28.2% Cost of net debt 0.0 0.2 ‐ 0.2 ns Other financial income and expenses 57 5.7 (1 0) (1.0) +6 7 +6.7 ns Income tax expense (43.9) (53.1) +9.2 ‐17.3% Share of p profits / ((losses)) of associa
Slide 21: Revenue Contributions by Segment
REVENUE CONTRIBUTIONS BY SEGMENT €m H1 2012 H1 2011 Var. €m Var. % Broadcasting France 1,045.4 1,052.2 ‐6.8 ‐0.6% TF1 SA 716.1 716 1 760.5 760 5 ‐44.4 44 4 ‐5.8% 5 8% Téléshopping 56.5 54.1 +2.4 +4.4% Thematic channels in France 163.3 160.1 +3.2 +2.0% TF1 Entreprises 17.4 16.6 +0.8 +4.8% In house pr
Slide 22: Operating Profit Contributions by Segment
OPERATING PROFIT CONTRIBUTIONS BY SEGMENT €m H1 2012 H1 2011 Var. €m Var. % Broadcasting France 102.1 181.0 ‐78.9 ‐43.6% TF1 SA 63.1 63 1 131.9 131 9 ‐68.8 68 8 ‐52 52.2% 2% Téléshopping 7.0 1.0 +6.0 x7.0 Thematic channels in France 17.8 27.9 ‐10.1 ‐36.2% TF1 Entreprises 1.6 2.6 ‐1.0 ‐38.5% In house
Slide 23: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (€m) 30/06/2012 31/12/2011 Var. €m Total non‐current assets 1 409 2 1,409.2 1 421 8 1,421.8 ‐12 6 ‐12.6 Total current assets 2,016.2 1,932.6 +83.6 Total assets 3,425.4 , 3,354.4 , +71.0 SHAREHOLDERS’ EQUITY AND LIAB. (€m) 30/06/12 31/12/11 Var. €m Shareholders equit
Slide 24: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT €m 30/06/12 30/06/11 Var. M€ Operating cash flow 164.4 219.7 ‐55.3 Income taxes (paid)/reimbursed (62.2) (31.7) ‐30.5 Change in operating working capital needs (5.9) (56.2) +50.3 Net cash generated by/(used in) operating activities 96.3 131.8 ‐35.5 Net cash generated
Slide 25: 3. Outlook
1. ACTIVITY IN FIRST‐HALF FIRST HALF 2012 2 H1 2012 FINANCIAL ACCOUNTS 2. 3. OUTLOOK 4. QUESTION & ANSWER 25
Slide 26: Television Has Robust Fundamentals for the Future
TELEVISION HAS ROBUST FUNDAMENTALS FOR THE FUTURE ` Television consumption has risen continuously in 2012 ` Major live events continue to attract big audiences ` TV campaign performance confirmed ` Digital extends the TV offer and boosts its value TELEVISION MORE THAN EVER IS AT THE HEART OF THE BUS
Slide 27: New Paradigm
NEW PARADIGM ` The economic environment has gradually and significantly deteriorated in 2012 ` The competitive environment continues to change o 6 new DTT channels will be launched on 12 December 2012 o Canal+ is set to make its entry in free‐to‐air free to air TV TF1 CONTINUES TO ADAPT 27
Slide 28: TF1 Continues to Adapt Its Business Model
TF1 CONTINUES TO ADAPT ITS BUSINESS MODEL… 2008‐2011 2012‐... ` Optimisation plan, phase 1: €155 m in ` Optimisation plan, phase 2, aimed at: recurring savings o reducing payroll o reduced structural costs o increasing flexibility in producer contracts o optimised programming costs o reviewing stock
Slide 29: ... Without Neglecting Growth Opportunities
... WITHOUT NEGLECTING GROWTH OPPORTUNITIES A STRONGER FREE‐TO‐AIR OFFER CONTINUED DEVELOPMENT OF PAY OFFER • Launch of HD1 in December 2012 DIGITAL, AT THE HEART OF OUR BUSINESSES 29
Slide 30: 4. Question & Answer
1. ACTIVITY IN FIRST‐HALF FIRST HALF 2012 2 H1 2012 FINANCIAL ACCOUNTS 2. 3. OUTLOOK 4. QUESTION & ANSWER 30
Slide 31: 2012 First-Half Results Analysts Meeting
2012 FIRST‐HALF RESULTS ANALYSTS MEETING 26 July 2012