TF1 (EPA:TFI) - TF1 GROUP RESULTS FOR THE FIRST NINE MONTHS OF 2021

Transparency directive : regulatory news

28/10/2021 17:39

[28.10.2021] PRESS RELEASE

              TF1 GROUP RESULTS FOR THE FIRST NINE MONTHS OF 2021

Nine-month consolidated revenue at EUR1,651.2m (up 21.3% vs. 9m 2020) of which
revenue from other activities at EUR488.7m (up 22.0% vs. 9m 2020 and up 7.1%
vs. 9m 2019)
Current operating profit at EUR223.1m (up 77.6% vs. 9m 2020 and up 21.0% vs. 9m
2019) and current operating margin of 13.5% Increase of 2021 guidance: current
operating margin above 12%

Boulogne, 28 October 2021

The TF1 Board of Directors, chaired by Gilles Pélisson, met on 28 October 2021
to close off the financial statements for the first nine months of 2021. The
results below are presented using the segmental reporting structure adopted by
the TF1 group and in accordance with IFRS 16. Published revenue and operating
profit data are available in our 2021 first-nine months Financial Information
Report and on the TF1 group corporate website: www.groupe-tf1.fr/en.

(MEUR)            Q3 2021  Q3 2020  9m 2021   9m 2020  CHG.EURM  CHG.%  9M 2019
TF1 group
advertising
revenue*            360.0    345.8   1162.5     960.8     201.7  21.0%  1 158.4
Revenue from
other activities*  162.5    132.1    488.7     400.6      88.1  22.0%    456.2
Media **           447.6    424.8  1 431,0   1 209.8     221.2  18.3%
Advertising
revenue**           360.0    345.4   1162.4     960.4     202.0  21.0%
o/w digital
advertising
revenue**            30.6     31.2     93.6      83.9       9.8  11.6%
Newen Studios**      74.9     53.1    220.2     151.6      68.6  45.3%
Consolidated
revenue*            522.5    477.9   1651.2    1361.4     289.8  21.3%  1 614.6
Media **            46.5     51.0    193.9     121.8      72.1  59.2%
Newen Studios**      7.5      6.8     29.2       3.8      25.4   x7.5
Current operating
profit*              54.0     57.8    223.1     125.6      97.5  77.6%    184.4
Current operating
margin*             10.3%    12.1%    13.5%      9.2%       -  +4.3pts    11.4%
Operating profit*    51.2     57.8    217.9     125.6      92.3  73.5%    184.4
Net profit
attributable to
the Group*           38.6     38.7    147,0      77.1      69.9  90.7%    117.8
Cost of programmes
for the 5 channels*(208.8)  (183.0)  (657.5)   (521.8)   (135.7) 26.0%  (659.7)
Cost of
programmes***      (218.1)  (191.3)  (684.5)   (546.7)   (137.8) 25.2%  (679.9)

*Published data
**Proforma data
***"Cost of programmes" is a new indicator. which replaces "Cost of programmes
for the 5 channels" from 31 March 2021. Unlike the previous indicator. it
includes costs associated with non-linear activities (MYTF1. LCI Digital) and
with the theme channels (TV Breizh. Ushuaïa TV and Histoire TV).

Consolidated revenue  of  the  TF1  group  for  the  first  nine  months  of
2021  amounted  to EUR1,651.2 million, a sharp increase of EUR289.8 million
year-on-year (+21.3%(1)). It was also higher than the level reached at
end-September 2019 (EUR1,614.6 million).

Group advertising revenue was EUR1,162.5 million, a year-on-year rise of
EUR201.7 million (+21.0%).
Demand for TV advertising screens increased versus a very high comparative in
Q3 2020.

Revenue from other activities amounted to EUR488.7 million, up EUR88.1 million
(+22.0%). This sharp increase, which concerns both content production
activities at Newen Studios and music and advertiser services, reflects the
success of the Group's diversification strategy.

Current operating profit for the first nine months of 2021 totalled EUR223.1
million, up EUR97.5 million year-on-year (+77.6%) and an increase of EUR38.7
million versus 2019 (+21.0%).

For the first nine months of 2021, the current operating margin was 13.5%
(11.8% excluding government support), versus 9.2% in 2020 and 11.4% in 2019,
representing the highest margin in five years. It includes EUR27.7 million of
government support, of which EUR6.7 million in Q3 2021.

Operating profit came to EUR217.9 million, after external expense of EUR5.2
million relating to the proposed merger between TF1 and M6.

Net profit attributable to the Group was EUR147.0 million, up EUR69.9 million
year-on-year.

Analysis by segment Media
- Audience ratings(2)

For the first nine months of 2021, French television continued to largely bring
French audiences together. Average daily viewing time among individuals aged 4+
was 3 hours 36 minutes, down year-on-year but 16 minutes higher than in the
first nine months of 2019.

In a highly competitive environment with heavy newsflow in sport and politics,
TF1 Group's audience share among advertising targets rose to a high level. It
increased by 1.2 point year-on-year among W<50PDM(3) (33.0%) and 0.8 of a point
among 25-49 year-olds (30.0%), demonstrating the appeal of the Group's
channels.

The first nine months of 2021 posted successes across all targets and content
genres. On the back of strong ratings for the series, HPI (up to 12.4 million
viewers), French drama did not stop engaging audiences, including the all-new
Mensonges (up to 6.7 million viewers, 32% audience share among W<50PDM on
average). Sport continued its line-up of must-see events,  with  the   Euro
2020   football  tournament  which  attracted  a  peak  audience  of 16.4
million for the France/Switzerland match. The back-to-school period saw the
resumption of  iconic  entertainment  shows  such  as  Koh-Lanta  (up  to  6.8
million   viewers, 45.7% audience share among W<50PDM and 25-49 year-olds).
News coverage remains extremely popular, as illustrated by audiences for the
daily evening news bulletin (up to 8.8 million viewers) and the audience share
for the lunchtime bulletin (up to 48.2% audience share of individuals aged 4+).

(1) On a constant structure basis and at constant exchange rates, consolidated
revenue was up 21.9%.
(2) TV viewing figures from Médiamétrie over 9 months.
(3) Women aged under 50 purchasing decision-makers.

The MyTF1 digital platform also posted strong performance, with the leverage of
non-linear viewing figures, racking up 2.0 billion video views at end-September
2021, up 20% year-on- year. As of end-September 2021, it had more than 25
million subscribers.

- Revenue for the Media segment reached EUR1,431.0 million, an increase of
EUR221.2 million (+18.3%).
- Media segment advertising revenue for the first nine months of 2021 was up
21.0% at EUR1,162.4 million. An improved economic climate is driving favourable
trends, with advertisers still attracted to the pulling power of TV. Revenue
has also been boosted by the efforts of the ad sales house, particularly day
slots such as access prime time where we are gaining audience share. Digital
advertising revenue amounted to EUR93.6 million, up EUR9.8 million on the first
nine months of 2020, driven mainly by MyTF1.
- Revenue from other Media segment activities increased by EUR19.2 million
year-on- year, boosted in particular by a recovery in advertiser services(4).

- TF1 Group's cost of programmes reached EUR684.5 million, an increase versus
the first nine months of 2020, a year which was marked by substantial cost
savings against the backdrop of Covid-19, but in line with 9m 2019 levels.
During the 2021 back-to-school period, in a buoyant advertising market, the
Group positioned its spend on successful programmes in drama and entertainment,
thereby improving its targeted audience share.

- The Media segment reported current operating profit of EUR193.9 million, a
year-on-year rise of EUR72.1 million, generating a current operating margin of
13.5% (a 3.4-point increase year-on-year).

Newen Studios(5)

The Newen Studios group, which has operations in eight countries, produces and
distributes content across several genres such as drama, unscripted shows,
cartoons, documentaries, TV movies, and feature films.

- The Newen Studios segment posted revenue of EUR220.2 million for the first
nine months of 2021, up 45.3% year-on-year. Excluding the impact of changes in
structure from the deconsolidated Games business, Newen Studios reported a
57.8% increase in revenue.

(4) Such as Gamned, Magnetism, Ykone.
(5) In the first nine months of 2021, the divested activities of TF1 Games were
maintained within the Newen Studios segment.

Business at Newen Studios during the first nine months was boosted by a
catch-up effect, with some productions scheduled for 2020 (especially in Canada
and Belgium) having been postponed.

Newen is stepping up its international growth strategy, as reflected in its
acquisition of a majority stake in German production company, Flare Films, in
September, after the acquisition of Spanish production studio, iZen, in April.
Overall revenue at Newen Studios trended upwards, with activities outside
France accounting for 47.2% of total revenue.

At end-September, filming was completed for Liaison, the first major
French-English series to be commissioned by Apple TV+ in Europe, which is
co-produced by Newen subsidiaries, Léonis Productions and Ringside Studios.
September also saw the start of Capa Drama's shooting of the Canal+ series
Marie-Antoinette. For the first nine months of 2021, the book of orders
increased to more than 1,800 hours.

Distribution activities are also buoyant, as witnessed by new series, HPI,
which is already distributed by Newen in 50 countries outside France and has
been acquired for a prime-time slot on Rai Uno.

- The Newen Studios segment reported current operating profit of EUR29.2
million. As such, the segment returns to a current operating margin of 13.3%,
in line with normative performance.

Financial position

Shareholders' equity attributable to the Group was EUR1,653.5 million as of 30
September 2021 out of a balance sheet total of EUR3 493.7 million.

Free cash flow (before changes in WCR) amounted to EUR164.6 million in the
first nine months of 2021, versus EUR50.7 million for the same period in 2020.

TF1 Group reported a net cash position of EUR36.3 million as of 30 September
2021 (net debt of EUR35.7 million including lease obligations), compared with
net debt of EUR0.7 million at 31 December 2020 (net debt of EUR93.1 million
including lease obligations).

Extra-financial performance

In line with the series of extra-financial(6) initiatives already undertaken,
and particularly those concerning responsible advertising, in early July, the
TF1 Pub ad sales house announced the launch of an environmental advertising
fund. Each "green" (7) advertising campaign will trigger a contribution from
TF1 Group to an Eco fund. By communicating on their green products and
services, companies will also contribute to financing general interest
campaigns free of charge. Such campaigns will champion both sustainability and
responsible consumption. These awareness campaigns, which will identify
participating companies, will provide our clients with a useful catalyst for
promoting their environmental approach.

(6)For further information regarding the six Group-wide priorities identified
for 2021, please refer to our 2020 Universal Registration Document:
https://groupe-tf1.fr/sites/default/files/pdf-financiers/
tf1_urd_en_2020_vdef3_0.pdf

(7) Namely, displaying one eligibility criterion in its advertising spot
(labels certified by the French Environmental Agency (ADEME), energy label,
repairability index, environmental labelling, etc.).

Moreover, TF1 Group's commitment to CSR was recently recognised by the
extra-financial rating agency, EthiFinance. The Group was ranked third in
EthiFinance's Gaïa index in the category of companies with revenue greater
than EUR500m.

In anticipation of the application of the European Taxonomy regulation (EU)
2020/852, TF1 Group is working on identifying the portion of its activities
which are considered sustainable for 2021.

Outlook

The guidance below assumes no further deterioration in the public health
situation.

At the end of 2021, our audiences and advertisers will enjoy a rich and diverse
line-up, accessible by both linear and non-linear viewers. It will feature
all-new French dramas, Une si longue nuit and Mon Ange, as well as must-see
entertainment programmes such as the NRJ Music Awards and the new season of
Mask Singer. The convergence of TV and digital content will strengthen our ad
sales house value creation drivers.

Newen Studios will pursue its objectives of growing revenue outside the French
market and increasing its book of orders with pure player platforms.

Buoyed by its good performance in the first nine months of 2021, TF1 Group
increases its guidance of a double-digit current operating margin above 12% in
2021.

Our Financial Information Report for the first nine months of 2021 is available
at https://www.groupe-tf1.fr/en.
A conference call on our third-quarter results is scheduled for 6.30 p.m. CET
on 28 October 2021.
For details of how to connect go to
https://www.groupe-tf1.fr/en/investors/results-and-publications and click on
?Access our results announcements for the current year.?

                                 TF1 GROUP
                    INVESTOR RELATIONS - comfi@tf1.fr
               CORPORATE COMMUNICATIONS - mcarcabal@tf1.fr

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