But analysts forecast range on an increase of 4

October 19, 2011 12:00 AM
But analysts forecast range on an increase of 4

Day loaded for TF1, yesterday. In the morning, Patrick Le Lay, CEO of the group, led the annual general meeting while the afternoon, Jean-Pierre Morel, Chief Financial Officer, had a meeting with analysts. A key, a rather positive balance for the action which soared from 2.54 in the day. Before the shareholders, the first to re-detailed new of group policy to decline the strong brand TF1 each French consumes up to an hour per day on average according to him on different distribution channels: wireless channel, channels, Internet, mobile, podcast and media by helping advertisers to tailor their messages to each of these vectors.

The advertising Board is already organized for this (it sells as well a TV spot, a Web banner, mobile sponsorship to contact non-media) and the technical Board, digitized, which allows the diffusion of the same content on different media. Moreover, the leader gave finally became interested in German ProSiebenSat 1, if the latter was released for sale by its owner Haim Saban, also administrator of TF1.

Before analysts, Jean-Pierre Morel dropped that some information on the evolution of the advertising market and the thematic channels, but it was enough to justify the optimism. On the first point, the main teaching is that the agri-food sector, first advertiser with more than 25 of the advertising revenues of the chain, is out of the rut. The trigger was the agreement of reform of the Act Galland signed between distributors and suppliers in mid-February and which put an end to the price war.

Optimistic forecasts

Result, after a sluggish first quarter, advertising revenues have rebounded by 11 in net in April, are good in May and should be even better in June, thanks to the effect World Cup. TF1 predicted a growth of 8 in the second quarter on the basis of what is already signed today. Analysts have therefore concluded that growth may be more important. The group refused to give details on 2006 prior to the publication of the accounts of the first quarter, May 22. But analysts forecast range on an increase of 4.5 to 5.5. In 2007, the opening in the large distribution of television advertising should provide a new relay of growth.

Referring to the thematic channels, chief financial officer found that they should reach 10 million euros of operating result, in 2007 or 2008, against a loss of 15.9 million in 2005 (of which 6.5 million for LCI and 3.2 million for TV Breizh). This reversal is due to the extension of their Belgium streaming (contracts with cable-operators have been signed and an adaptation of LCI project is underway) and the agreements concluded with Vivendi and the Group Canal on the assignment of GST. This operation, which shows the Group of 365 million euros of turnover, should be compensated $ 250 million in two years, the launching of new activities on the game, blogs and especially mobile. TF1 Mobile, the licensing agreement with Bouygues Telecom to be launched on 2 may, hopes to reach 300,000 subscribers, without due precision.