• 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.

• Warning! GuruFocus has detected 3 Warning Sign with FRA:FSE.

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.

Q: What is the outlook for Newen Studios in 2025, and do you anticipate growth in activity? A: Rodolphe Belmer, CEO, mentioned that 2025 should be a year of growth for Newen Studios, driven by a solid core business and the full-year consolidation of Johnson Production Group, which contributed revenue for only five months in 2024.

Q: How will the recent tax increases in France impact your earnings per share (EPS) and effective tax rate? A: Pierre-Alain Gerard, CFO, indicated that the tax impact is expected to be similar to previous years, around EUR20 million to EUR25 million.

Q: What are your expectations for programming costs in 2025 compared to 2024? A: Rodolphe Belmer, CEO, stated that programming costs are expected to be similar, with a slight increase to maintain a superior content lineup, while aiming for a stable margin.

Q: Regarding TF1+, what are the growth components for 2025, and how do you expect CPM pricing to evolve? A: Rodolphe Belmer, CEO, explained that TF1+ aims for strong double-digit revenue growth in 2025, driven by pricing, ad load, and increased usage. CPM pricing is expected to grow, albeit less pronounced than in 2024, with a midterm target of EUR15.

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