• Consolidated Revenue: EUR520 million in Q1, up 1.6% year on year.
• Advertising Revenue: Stable at EUR363 million.
• TF1+ Advertising Revenue: Increased by 37% year on year to EUR40 million.
• COPA: EUR43 million, up EUR6 million, with a margin increase of 1 point to 8.3%.
• Net Cash: EUR559 million at the end of March, up EUR53 million from December 2024.
• Studio TF1 Revenue: EUR59 million, stable year on year.
• Operating Profit: EUR36 million, stable year on year.
• Net Profit: EUR26 million, close to last year's level.
• Free Cash Flow Before Working Capital: EUR27 million.
• Free Cash Flow After Working Capital: EUR50 million.

• Warning! GuruFocus has detected 5 Warning Signs with FRA:FSE.

Release Date: April 30, 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 among key audience demographics, including women below 50 and individuals aged 25 to 49.
• TF1+ attracted an average of 35 million streamers per month in Q1 2025, surpassing its 2024 average.
• The group's consolidated revenue increased by 1.6% year on year, reaching EUR520 million.
• Advertising revenue from TF1+ grew by 37% year on year, reaching EUR40 million.
• The company maintained a strong financial position with net cash of EUR559 million at the end of March 2025.

Negative Points

• Advertising revenue from linear channels was stable, indicating potential stagnation in traditional advertising streams.
• The start of Q2 2025 was softer than expected, suggesting potential challenges in maintaining revenue growth.
• Studio TF1's revenue was stable year on year, with no significant growth reported.
• The company faced an exceptional tax expense of EUR11 million in Q1 2025, impacting net profit.
• COPA for Studio TF1 decreased by EUR2 million year on year, reflecting costs associated with a new ERP system.

Q & A Highlights

Q: The 37% growth in ad revenues from TF1+ is impressive. Does this suggest a 3% decline in linear revenues, and is this a fair expectation for the rest of the year? A: The 37% growth is indeed dynamic, and we aim to maintain this momentum throughout the year. However, it's too early to provide a precise mix between linear and digital revenues. Our focus remains on strong digital growth.

Q: Regarding TF1+, the ad load seems to have driven growth significantly in Q1. Should we expect less impact from ad load for the rest of the year? A: The ad load numbers are broad averages, and consumption is influenced by various factors like reach and session duration. We track these parameters closely, and Q1 results were in line with or above our plans.

Q: Can you provide the contribution of Johnson Production Group (JPG) to COPA and the ERP costs charged to studio COPA in Q1? A: JPG contributed around EUR5 million to COPA, and ERP costs were slightly above EUR1 million, between EUR1 million and EUR2 million.

Q: Have you observed any changes in advertising patterns towards the end of Q1 or the start of Q2? A: The start of Q2 is softer than expected, but no significant changes in advertising patterns have been observed. We maintain our guidance for the year, similar to the situation at the end of 2022.

Q: What are your expectations for studio TF1 revenues excluding JPG, and for non-advertising revenues in media for Q2 and beyond? A: We don't provide full-year guidance for studio TF1, but expect significant contributions from JPG. Non-advertising revenue grew by 10% year on year, driven by interactivity and music segments, but we don't guide on full-year non-advertising revenue.

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