Investor presentation Q1 results

Transcription

1 Investor presentation 2010 Q1 results

2 TF1 GROUP Free Channels Pay TV (France) Production Advertising adgency Diversification & Internet Audiovisual rights Broadcasting international * * * In process following the clearance given by the Competition Authorities and the regulator 2

3 SOMMAIRE AN AUDIOVISUAL ENVIRONMENT IN CONSTANT EVOLUTION TF1, FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS ANS ENTERTAINMENT BUILD ON SYNERGIES WITH NEW MEDIA PURSUE THE POLICIY OF STRATEGIC ALLIANCES EXPLORE NEW TERRITORIES 3

4 A TOUGHER COMPETITION WITH A GROWING CHANNEL OFFER TV equiped receiving 18 channels or more Indiv. 4 years and DTT Channels - audience ratings Indiv. 4 years and + SOURCE : Médiamétrie 4

5 TV CONSUMPTION AT ITS HIGHEST LEVEL IN 2010 TV Consumption (as at vs. same period for previous years) 3:16 3:31 3:21 3:24 3:08 3:09 3:23 3:17 3:16 3:15 3:14 3:18 3:08 3:08 3:06 3:02 3:29 3:23 3:26 3:24 3:17 3:13 3:40 3:40 3:44 3:35 3:37 3:39 3:41 3:36 3:36 3:32 3:31 3:28 3:55 4:01 4:00 3:46 3:47 3:46 3:47 3:44 3:43 3:48 3:47 3:36 3:41 3:34 3:38 4:00 3:48 3:47 Women<50: 4h min vs years and +: 3h48 +7 min vs years: 3h47 +9 min vs :03 3:00 2:53 2:57 2:59 3:01 3:00 3: SOURCE : Médiamétrie Médiamat ( as at March 21 st 2010 vs same period for previous years)

6 SOMMAIRE AN AUDIOVISUAL ENVIRONMENT IN CONSTANT EVOLUTION TF1, FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS ANS ENTERTAINMENT BUILD ON SYNERGIES WITH NEW MEDIA PURSUE THE POLICIY OF STRATEGIC ALLIANCES EXPLORE NEW TERRITORIES 6

7 TF1, A EUROPEAN LEADER Audience share (in %) of leading European channels on their own national territories in Q Gap between each leader and its challenger Leader Challenger TF1 25.1% France % 8.9 pts Leader Challenger BBC 1 ITV1 20.7% 17.1% 3.6 pts Leader Challenger Das Erste ZDF 13.4% 13.1% 0.3 pts Leader Challenger TVE1 Tele % 14.9% 2.7 pts Leader Challenger Rai 1 Canale % 20.4% 1.5 pts SOURCE : Médiamétrie Q years + 7

8 TF1, 1 st French TV Channel (on individuals 4 years and +) Audience share 4 years and + (in %) Change. vs Q % -2% -6% - 12 % -5% + 30 % -3% Jan-mar 2009 Jan-mar ,1 26,6 16,2 18,0 16,6 12,0 11,3 11,0 10,5 13,8 12,8 12,4 3,4 3,0 TF1 F2 F3 C+ M6 Whole DTT Ch. TNT Whole paying Ch. Pay. channels channels 8 SOURCE : Médiamétrie Médiamat Q1 2010

9 TF1, 1 st French TV Channel (on advertising target) Audience share on women below 50 (in %) Change vs Q % -2% -2% -19% -7% +23% = 29,3 30,2 16,4 18,8 12,4 12,2 6,5 17,6 15,3 12,0 12,0 6,6 3,1 2,5 Whole DTT TF1 F2 F3 C+ M6 Ch. TNT Ch. Pay. channels Whole paying channels 9 SOURCE : Médiamétrie Médiamat Q1 2010

10 TF1 keeps a high prime time audience level on the 1 st quarter 2010 Number of TV viewers Change vs Q = -6 % -2 % -5 % + 37 % + 4 % 6,8 m ,8 m 4,1 m 3,8 m 3,0 m 2,9 m 3,3 m 3,5 m 3,2 m 4,4 m 2,3 m 2,4 m TF1 F2 F3 M6 Ch. TNT Ch. Pay. Of TV viewers vs. 1 st challenger A gap increased over a year Leader on prime time (vs 89% in jan-mar 2009) of top 50 audiences The only channel with more than 9 m TV viewers (11 programmes) 10 SOURCE : Médiamétrie Médiamat Time slot: prime-time ( )

11 AN INCREASED PERFORMANCE ON STRATEGIC SLOT (7pm 1am) ON TF1 CORE CHANNEL Audience share of 4 years and + Audience share of women < 50 Audience share years 25.1% 16.2% 2 nd pts vs 2 nd 28.0% 15.4% 2 nd pts vs 2 nd 29.3% 16.4% 2 nd pts vs 2 nd 33.4% 18.1% 2 nd pts vs 2 nd 27.0% 14.5% 2 nd pts vs 2 nd 30.7 % 16.6% 2 nd pts vs 2 nd Whole day 7pm 1am Whole day 7pm 1am Whole day 7pm 1am Whole day 7pm 1am Audience share of the 2 nd. TF1 «challenger» SOURCE : Médiamétrie Médiamat Q

12 AN INVESTMENT IN DTT TO STRENGTHEN ON OUR CORE BUSINESS National audience share (in %) 1 st quarter years and Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Virgin 17 Gulli Women < Direct 8 W9 TMC NT1 NRJ12 F4 BFM TV I.Télé Virgin 17 Gulli janv-fév janv-fév OUR COMMITMENTS FACILITATE RIGHTS CIRCULATION IN THE MARKET LIMIT REPEATS WITHIN THE GROUP NO CROSS-PROMOTION FOR TMC AND NT1 ON TF1 & CHANNELS WITH WELL-DEFINED EDITORIAL IDENTITY SEPARATE ADVERTISING DEPARTMENTS + APPOINTMENT OF AN INDEPENDENT REPRESENTATIVE 2 ADVERTISING DEPARTMENTS TO SATISFY A BROAD CUSTOMER PANEL 12

13 THEMATIC CHANNELS RENEWED Revised editorial positionning Sustainable development and environment protection From debates to major commemorations Lifestyle and well-being TV series and well-known characters A visible dynamism on screen New look for Odyssée Histoire: new logo and new baseline (The past of the present) All-new documentary shows and series, new faces LCI. a reference channel The event channel Launch of in January

14 A DEEPER OFFER FOR EUROSPORT 116 million households subscribers 59 countries in Europe 20 languages 120 sports covered 22 million of TV viewers everyday More than 50% of Eurosport channel in Live (record) First sport website in Europe Always more rights and exclusivities To strengthen the value of the channel in front of distributors To come up to advertisers expectations New products and technologic innovations France UK Local versions Hungary / Romania Scandinavia Eastern European Countries Websites UK DE ES IT RU PL SE CN AR 14

15 SOMMAIRE AN AUDIOVISUAL ENVIRONMENT IN CONSTANT EVOLUTION TF1, FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS ANS ENTERTAINMENT BUILD ON SYNERGIES WITH NEW MEDIA PURSUE THE POLICIY OF STRATEGIC ALLIANCES EXPLORE NEW TERRITORIES 15

16 BUILD ON SYNERGIES WITH NEW MEDIA: THE 360 MEDIA STRATEGY IS GETTING DEEPER AND STRONGER TV INTERNATIONAL DIGITAL RADIO INTERACTIVITY MOBILE TF1 PLAYER TF1.FR for mobile 16

17 BUILD ON SYNERGIES WITH NEW MEDIA: TF1 IS THE NUMBER ONE FRENCH TV MEDIA GROUP ON THE WEB French websites audiences in million of Unique Visitor (MUV) TF1 7 th web group TF1 1 st French TV media group on the web TF1 in the lead GOOGLE MICROSOFT FACEBOOK 33.6 MUV 25.6 MUV 23.0 MUV +10% GROUPE 1 st at 16.8 MUV MEDIAS BLOGS 1 st at 7.2 MUV 1 st at 10.1 MUV FRANCE TELECOM PAGES JAUNES ILIAD 22.4 MUV 18.9 MUV 17.9 MUV = +11% GROUPE 11.2 MUV 7.3 MUV SPORTS VIDEOS 2 nd at 2.9 MUV 4 th at 4.3 MUV 7 GROUP TF MUV 5.1 MUV YOUTH 2 nd at 634 kvu 8 YAHOO! 9 WIKIMEDIA FOUNDATION 10 VIVENDI UNIVERSAL 16.4 MUV 16.3 MUV 15.8 MUV +3% April 2009 April 2010 WOMEN NEWS 4 th at 2.7 MUV 9 th at 4.0 MUV Source: Panel NNR Médiamétrie April 2010 «MUV»: Million of Unique Visitors (Internet user) 17

18 BUILD ON SYNERGIES WITH NEW MEDIA: A LEAD ON SMART TV Box TV: Smart TV: INTERACTIVE APPLICATIONS SET-TOP TV BOX Pour une distribution avec les fabricants TV MODEM For distribution via ISPs and cable operators Agreements:. MODEM 1 er ACCORD: For distribution via TV manufacturers 1 st Agreement:. Form partnerships with other IPSs/cable operators Continuously enhance offering Negociate partnerships with other smart TV manufacturers Gradually broaden the service offering Create a special brand for smart TV applications 18

19 SOMMAIRE AN AUDIOVISUAL ENVIRONMENT IN CONSTANT EVOLUTION TF1. FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS ANS ENTERTAINMENT BUILD ON SYNERGIES WITH NEW MEDIA PURSUE THE POLICIY OF STRATEGIC ALLIANCES EXPLORE NEW TERRITORIES 19

20 PURSUE THE STRATEGY OF POLICY ALLIANCES: UGC&TF1 PARTNERSHIP Acquisition / Coproduction of audiovisual rights Sale in France Management of the rights patrimony UGC IMAGES 66% 34% 34% 66% JV 1 JV 2 Selling film rights internationally and VOD rights in France Production and distribution of coproduced movies in France 20

21 PURSUE THE STRATEGY OF POLICY ALLIANCES: THE SAMSUNG PARTNERSHIP ON CONNECTED TV THE GROWING CONNECTED TV MARKET A MAJOR PARTNERSHIP SAMSUNG AN EXCLUSIVE COMPREHENSION BY TF1 OF INTERACTIVITY ON ITS CHANNELS TF1 exercises a total and exclusive control on services printed on its channels PHILIPS PANASONIC RICHED CONTENTS AND SERVICES Free services (news. TF1 programmes. weather. sport. etc.) Paying services (VOD, games, votes, shopping, etc.) At launch: 6 TF1 applications on TF1 channel, and 2 applications for TF1 in Samsung gallery A MUTUAL EXCLUSIVITY 6 months from product sale 21

22 SOMMAIRE AN AUDIOVISUAL ENVIRONMENT IN CONSTANT EVOLUTION TF1, FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS ANS ENTERTAINMENT BUILD ON SYNERGIES WITH NEW MEDIA PURSUE THE POLICIY OF STRATEGIC ALLIANCES EXPLORE NEW TERRITORIES 22

23 EXPLORE NEW TERRITORIES: ENTERING THE ONLINE BETTING AND GAMING MARKET 1 ONLINE GAMING 2 LICENSES A dedicated space for games on TF1.fr operated by La Française des Jeux which will take over the game offer of the latter and including also exclusive content from TF1 The ability to use TF1 Licenses for scratched within La Française des Jeux network (38,000 selling points) Creation of a gaming operator with licenses: obtaining a license to operate on the French market. European ambition in line with Eurosport profile Competing directly with «pure-players» in the sector 3 SPONSORSHIP The sponsorship of 2 short programmes on TF1 core channel linked to sport news and football World Cup Reassuring and responsible offer, controlled for people under 18 years old An adapted service for Internet gamers Acquisition of Serendipity s 50% share in SPS Organisation of the 1 st International competition in France of Heads-Up Poker with Evian Casino 23

24 EXPLORE NEW TERRITORIES: BUILD A CRM STRATEGY 2 Contacts systems Develop individual knowledge of our public and customers Strengthen ties with our public 1 REGISTRATION TF1 Contacts Sell paying services and content to TV viewers Web Mobile Interactivity Online gaming 3 Propose a complementary and targeted «contacts» offering to advertisers A PARTNERSHIP WITH TF1 campaign pooling several companies in the same spot with web couponing Mass retail grass-roots operations 24

25 OUR AMBITION: A MULTICHANNEL GROUP FRANCE S LEADING MULTICHANNEL PROVIDER OF NEWS FRANCE S LEADING MULTICHANNEL PROVIDER OF ENTERTAINMENT, INTRODUCING NEW FORMS OF CONTACTS WITH OUR AUDIENCE News channel News Bulletin Magazines Financing and Distributing movies Content production Home entertainment Radio Mobiles Smartphones. iphones TF1 Games Brand licenses KEEPING YOU INFORMED KEEPING YOU ENTERTAINED Web radio Website TF1News Smart TVs Direct access to News Online betting and gaming Live shows Applications 25

26 OUR AMBITION: TF1, A LEADER WITH A CHALLENGER S SPIRIT Address a broad public by bringing people together through exclusive, major enterainment events Enable each person to extend their personal experience via multimedia and our affiliated activities Establish a base of qualified customers on the web to open up to new forms of business Improve our economic performance while investing for the future 26

27 Annexes Q ACCOUNTS ADVERTISING SECTORS EVOLUTION COST SAVING PLAN CONTACTS 27

28 ADVERTISING REVENUE m Q Q Var. m Var. % Consolidated revenue % Advertising revenue TF1 channel % Diversification revenue % TF1 Channel % Thematic channels in France % Internet France % Eurosport International % Radios % Total advertising revenue % 28

29 CONSOLIDATED REVENUE EVOLUTION Q Q Var. m Var. % France Broadcasting TF1 Channel Téléshopping group Thematic channels in France TF1 Entreprises In-house production companies e-tf1 Others Audiovisual rights Catalogue TF1 Vidéo International Broadcasting Other activities Operating revenue % % % % -1.5 % % % % -1.8 % % % % % - 29

30 TF1 CHANNEL PROGRAMMING COSTS m Q Q Var. m Var. % Total programming costs % One-off sporting events Total programming costs excluding one-off sporting events % Entertainment % TV dramas / TV movies / Series / Theatre % Sports (excl. one-off sporting events) % News % Movies % Youth % 30

31 CONSOLIDATED INCOME STATEMENT m Q Q Var. m Var. % Consolidated revenue % Total programming costs % Total other charges % Depreciation, amortisations and provisions % Operating profit Operating margin % % pts ns - Cost of net debt % Other financial income and expenses % Income tax expense ns Share of profit/losses of associates % Net profit ns 31

32 CONSOLIDATED OPERATING RESULT EVOLUTION m Q Q Var. m Var. % France Broadcasting ns TF1 Channel ns Téléshopping group % Thematic channels in France % TF1 Entreprises ns In-house production companies ns e-tf % Others ns Audiovisual rights % Catalogue ns TF1 Vidéo % International Broadcasting % Other activities Operating results ns 32

33 CONSOLIDATED BALANCE SHEET ASSETS ( m) 31/03/10 31/12/09 31/03/09 Total non-current assets 1, , ,175.8 Total current assets 2, , ,356.4 Held-for-sale assets Total Assets 3, , ,532.2 SHAREHOLDERS EQUITY AND LIAB. ( m) 31/03/10 31/12/09 31/03/09 Shareholders equity (att. to the Group) 1, ,383.9 Non-current liabilities Current liabilities 2, ,473.8 Liabilities linked to held-for-sale assets Total shareholders equity and liabilities 3, , , Net cash (+) / Net debt (-) (620.9)

34 CONSOLIDATED CASH FLOW STATEMENT million 31/03/10 31/03/09 31/12/09 Operating cash flow before net interest expenses and income tax Income taxes paid Change in operating working capital requirement Net cash generated by operating activities Net cash generated by investment activities Net cash generated by financial operations Change in cash position Cash position at beginning of period Cash position at end of period

35 SOUND FINANCIAL STRUCTURE Payment statement ( m) Bond Issue Confirmed credit facilities 1, , , , , ,5 955, , , , /12/ /12/ /12/ /12/ /03/

36 COST SAVING PLAN Q Programming costs excl. sports events (recurring savings) Contract renagociation Other charges Cost saving plan

37 PRGRAMMING COST EVOLUTION ANNUAL EVOLUTION OF THE PROGRAMMING COSTS (EXCL. SPECIAL SPORTS EVENTS) 8,0% 6,0% 4,0% 2,0% 0,0% -2,0% -4,0% -6,0% 37

38 A DYNAMIC EVOLUTION OF THE ADVERTISING SECTORS Evol Jan-Apr 2010 vs. Jan-Apr 2009 FOOD 22.5% % COSMETICS 15.2% % AUTO-TRANSPORT 11.0% % FINANCIAL SERVICES 8.5% % HOUSE CLEANING 6.1% % RETAIL 5.9% % TELECOMMUNICATIONS 4.9% % PUBLISHING HEALTH 4.7% 4.0% -5.3% % Ad gross revenue : +18.2% (Jan-Apr 2010 vs. Jan-Apr 2009) NEWS - MEDIA 2.9% % 38 Source: Kantar Media Jan-Apr 2010 vs. Jan-Apr 2009

39 CONTACTS Philippe DENERY CFO : : : pdenery@tf1.fr Christine Bellin Head of Investor Relations : : : cbellin@tf1.fr Edouard Benadava IR Manager : : : ebenadava@tf1.fr Deborah Zub IR Officer : : : dzub@tf1.fr Besma Guizani Coordinator : : : bguizani@tf1.fr IR department : : : comfi@tf1.fr TF1 1 quai du Point du Jour Boulogne Cedex France 39