Posted Feb 11 2022 at 10:49Updated Feb 11. 2022 at 12:11
The engines of the TF1 group have been running at full speed in 2021. For its last annual results before the planned merger with M6, the timetable for which is confirmed, the audiovisual group controlled by Bouygues posted strong performances both in terms of profitability and revenue growth. revenues, thanks in particular to the recovery of the market and the success of Newen, its production subsidiary. , to reach 225 million euros. As for the current operating margin rate, it was close to 13% in 2021 excluding recognition of the tax credit granted in the context of the pandemic, which is significantly better than in 2020 (9.1%) and in 2019 (10.9%). Investors welcomed this good vintage. The title gained more than 4% at the opening of the Paris Stock Exchange and was still up 2.2% at midday.
archyde news restart
“These are very good results which are the fruit of our strategy and thanks to the spectacular restart of we have delivered what we could have hoped for, even beyond”, welcomed Gilles Pélisson, the group’s CEO, during an exchange with the journalists. Thanks to its good health, TF1 is in the “starting blocks” to carry out the merger project with M6.
In total, turnover increased by nearly 17%. At 2.43 billion euros, it is also 3.8% higher than that of 2019, the last year before Covid. In detail, it was the economic recovery coupled with particularly high audience shares on key targets for advertisers that enabled TF1’s revenue to grow by 14% to 1.69 billion euros. On the Newen side, revenues rose by 43% to nearly 336 million euros, due in particular to the continuation of its strategy of acquisitions and partnerships to extend its footprint internationally. As for the proposed merger with M6, “ the progress of the process is following its course, whether with the Competition Authority or with Arcom (Audiovisual and digital communication regulatory authority, editor’s note), there are almost permanent exchanges with the two institutions in according to the needs they have to compile their files”, noted Gilles Pélisson. The decision of the Competition Authority on the merger project is expected for October or November. And, before being able to finalize their marriage project, the green light from the audiovisual policeman will also be necessary for the shareholders to authorize the change in the composition of the capital.
Channel sales
What is already certain is that the future group would have a number of linear channels (10) exceeding the maximum of seven imposed by the regulations. Asked about possible channel transfers, Gilles Pélisson remained evasive. “We have received offers” but “until these operations are done there are not many comments to make”, he said.
But the merger already has a cost. In 2021, TF1 spent 10.3 million euros in exceptional charges related to the merger with its competitor M6. As for the cost of the program schedule, it remains under control at 981 million euros in 2021 (-30.6 million compared to 2019). The financial director, Philippe Denery, recalled that the level of 2019 (1.01 billion) represents a maximum. “We have to keep all of these costs around one billion, slightly above when there are major sporting events,” he added. This will be the case in particular this year with the Football World Cup which will take place in Qatar next fall.
At the end of 2021, the TF1 group posted a net financial surplus of 198.5 million euros and its board of directors will propose to pay a dividend of 45 centimes per share.