Television Francaise 1 SA (FRA:FSE) Full Year 2024 Earnings Call Highlights: Strong Revenue ...

In This Article:

  • Consolidated Revenue: EUR2.4 billion, a year-on-year increase of 3%.

  • Advertising Revenue: Up 2% in the Media segment; TF1+ advertising revenue grew by almost 40%.

  • Net Cash: EUR506 million, stable year-on-year.

  • COPA (Operating Profit Before Amortization): EUR297 million, up EUR9 million year-on-year.

  • Margin from Activities: 12.6%, slightly higher than 2023 by 0.1 points.

  • Net Profit: EUR206 million, up EUR14 million year-on-year.

  • Free Cash Flow Before Working Capital: EUR229 million in 2024 versus EUR177 million last year.

  • Dividend Proposal: EUR0.60 per share, up 9% from 2024.

  • Newen Studio Revenue: Increased by 5% in 2024.

  • Q4 Revenue: EUR765 million, a year-on-year increase of 2%.

  • Q4 Newen Studio Revenue: Rose by 16% to EUR153 million.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Television Francaise 1 SA maintained its leadership in audience shares among key demographics, including women under 50 and individuals aged 25-49.

  • The group's consolidated revenue increased by 2.6%, driven by growth in both media and studios.

  • Advertising revenue from TF1+ grew by almost 40%, highlighting the platform's appeal to advertisers.

  • The company maintained a strong financial position with a net cash of EUR506 million, stable year-on-year.

  • Newen Studios experienced a 5% increase in revenue and returned to a double-digit margin, benefiting from synergies with the media segment.

Negative Points

  • Advertising revenue in the Media segment was down 2% in Q4, despite outperforming the market.

  • The linear advertising market faced challenges due to competition from the Olympic Games and a weaker-than-expected market in the last two months of the year.

  • The group faced increased programming costs and investments in TF1+, impacting margins.

  • The tax increases in France are expected to have a financial impact of EUR20 million to EUR25 million.

  • The international expansion of TF1+ is expected to provide only modest growth in 2025.

Q & A Highlights

Q: Can you provide insights on the advertising outlook for 2025, especially in light of your competitor's bullish stance on potential revenue gains? A: Rodolphe Belmer, CEO, stated that while the advertising market lacks visibility, TF1+ is expected to maintain strong momentum with double-digit growth. The first two months of 2025 have met expectations, and annual engagements with customers, which represent 70% of annual advertising revenue, are progressing well, aligning with their objectives.