The TF1 group generated consolidated revenue of €561.3 million in Q1 2022, an increase of €51.5 million (+10.1%) while the Group advertising revenue was €377.1 million, up €19.2 million (+5.4%) year on year, thanks to the gradual recovery of business sectors that were still impacted by the pandemic in 2021.
Revenue from other Group activities totalled €184.2 million, up €32.3 million (+21.3%), resulting in part from a scope effect of €17.5 million, mainly at Newen Studios.
Current operating profit came to €59.6 million, up €2.8 million year on year (+4.9%). Group current operating margin was 10.6%, down slightly on Q1 2021 (11.1%). Operating profit came to €56.2 million, after €3.4 million of non-recurring expenses relating to the proposed merger between TF1 and M6. Attributable net profit was €34.1 million, stable overall compared with last year.
In Q1 2022, average daily viewing time was 3 hours and 32 minutes among individuals aged 4 and over, down 9% compared with Q1 2021, still impacted by the COVID-19 crisis. The figure was stable overall compared with Q1 2019 (3 hours and 38 minutes).
The decrease in daily viewing time was offset by the development of new content consumption forms, to which the TF1 group plans to respond through the non-linear services it has developed. MYTF1 MAX, launched in November 2021, is a set of additional paid services rounding out the SVOD range on the Salto platform.
Revenue for the Media segment reached €485.5 million, an increase of €41.0 million (+9.2%). The Media segment generated advertising revenue of €377.1 million in Q1 2022, up 5.4%, consistent with the strong momentum shown in late 2021. Digital advertising revenue amounted to €30.2 million, up €2.3 million compared with end-March 2021 (8.2%), driven mainly by MyTF1; Revenue from other Media segment activities increased €21.7 million year on year (+25.0%) on growth in the entertainment and distribution businesses.
The TF1 group’s cost of programmes totalled €220.0 million, for a year-on-year increase of €9.2 million. Through these controlled re-investments, the group was able to cater to demand from advertisers and maintain an offering of high-ratings programmes in news, French drama and entertainment alike. The Media segment reported current operating profit of €56.9 million, a year-on-year rise of €10.1 million, generating a current operating margin of 11.7% (up 1.2 point from 2021 and 2.1 points from 2020).
The Newen Studios segment posted revenue of €75.8 million in first-quarter 2022, up 16.1% year on year. Newen Studios continued to expand internationally in the first three months, bolstered in particular by the contributions of the Izen studio in Spain and the Flare studio in Germany acquired in 2021.
Several projects were confirmed at the start of the year, including two productions ordered by international platforms from the Dutch studio Tuvalu, "Nemesis" for Disney+ and "The Hunt for Jasper S." for Viaplay. These orders, added to those made in 2021 with Newen’s European subsidiaries, demonstrate the group’s know-how and ability to respond to positive trends in demand.
PROPOSED MERGER OF THE TF1 AND M6 GROUPS
The TF1 group notes that the proposed merger of the TF1 and M6 groups is subject to regulatory authorisation. In this respect, procedures with the French competition authority (ADLC) and the French regulatory authority for audiovisual and digital communication (ARCOM) are ongoing.
The ADLC was notified of the proposed merger on 17 February 2022. It is expected to give its decision in October. Regarding the French securities regulator (AMF), RTL, Bouygues and TF1 will submit their requests for exemptions from the mandatory filing of a proposed public offering in May.