Television Francaise 1 SA (FRA:FSE) Q3 2024 Earnings Call Highlights: Strong Advertising Growth ...

In This Article:

  • Advertising Revenue: Up 4.5% year on year, with linear growth of 2.2% and T Plus growth of 39.5%.

  • Current Operating Profit: EUR198 million, close to the figure of 2023.

  • Current Operating Margin: 12.4%, compared with 13.2% last year.

  • Net Cash: EUR364 million at the end of September 2024.

  • Consolidated Revenue: EUR1.6 billion for the first nine months, up 3% year on year.

  • Media Segment Non-Advertising Revenue: EUR252 million.

  • New Studios Revenue: EUR192 million, down 3% year on year.

  • Net Profit Attributable to the Group: EUR145 million, up EUR6 million.

  • Free Cash Flow: EUR109 million, EUR51 million after changes in working capital.

  • Acquisitions and Disposals: EUR72 million, including the acquisition of JPG for around EUR65 million.

Release Date: October 30, 2024

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 commercial targets, with stable audience shares year-on-year despite competition from major events like the Paris Olympics.

  • The group's advertising revenue increased by 4.5% year-on-year, with a notable 39.5% growth in digital streaming platform T Plus.

  • The company reported a strong financial position with a net cash of EUR364 million at the end of September 2024.

  • The group's streaming platform, T Plus, continues to grow, with a 40% increase in advertising revenue compared to last year.

  • Television Francaise 1 SA confirmed its 2024 objectives, aiming for a stable current operating margin and continued cash flow generation to support a growing dividend policy.

Negative Points

  • The advertising market is showing signs of tension, particularly due to political and tax situations in France, which could impact future revenue.

  • Current operating margin from activities decreased slightly to 12.4% from 13.2% last year.

  • The production segment's revenue decreased by 3% year-on-year, with significant activity skewed towards the fourth quarter.

  • Net cash decreased by EUR141 million over the first nine months, partly due to acquisitions and dividend payments.

  • The company faces potential challenges from increased taxes in France, which could affect the effective tax rate and financial performance.

Q & A Highlights

Q: Can you elaborate on the tension in the advertising market for Q4 in France? Do you expect a weaker performance compared to Q3? A: Visibility remains low in the advertising market, and advertisers are cautious for the end of the year. We expect some tightening, especially considering potential tax changes.