Q1 2021 Consolidated Revenue
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POST Q1 2021 RESULTS INVESTOR PRESENTATION TF1 GROUP: A DIVERSIFIED PORTFOLIO WITH CONTENT PRODUCTION, BROADCASTING AND DIGITAL TV CONTENT PRODUCTION & DISTRIBUTION BROADCASTING DIGITAL DRAMA / SCRIPTED FTA CHANNELS PUBLISHERS * THEME CHANNELS DOCUMENTARIES ANIMATION OTHER BROADCASTING ACTIVITIES BRAND SOLUTIONS AND SERVICES ** ENTERTAINMENT/ TALK SHOWS TV MOVIES SOCIAL E-COMMERCE DISTRIBUTION * Acquired on 27 April 2021 2 ** OTT platform common to TF1, France Télévisions and M6 ESG COMMITMENT AT THE HEART OF TF1 DNA FOCUS ON CLIMATE STRATEGY TF1 ESG COMMITMENT recognised by extra- financial rating agencies CONTRIBUTING to low-carbon transition through our content 1st PLACE Companies with revenues NOTE AA NEW week-end show over €500 million Génération Ushuaïa 1 000 reports per year in th news bulletins 5 PLACE on general ranking >480 reports in 2020 on LCI th PLACE Inclusion in S&P 7 Global Sustainability on environnemental Yearbook 2021 3.8m people reached each dimension ranking month on Ushuaïa TV Media companies 3 TABLE OF CONTENT A MAJ OVERVIEW OF TF1 GROUP PROFILE AND THE 1 FRENCH MEDIA MARKET (P.5) 2020 AND Q1 2021: STRONG ADAPTABILITY OF THE 2 GROUP’S 3 BUSINESSES (P.12) 3 Q1 2021: FINANCIAL RESULTS (P.23) 2021 AND BEYOND: THE GROUP IS IN A GROWTH DYNAMIC WITH OPPORTUNITIES IN BOTH CONTENT 4 AND DIGITAL (P.29) 5 APPENDIX (P.31) 4 OVERVIEW OF TF1 GROUP PROFILE 1 AND THE FRENCH MEDIA MARKET 5 Q1 2021: TV IS MORE THAN EVER A VERY POWERFUL MEDIA Viewing time still at a high level in Q1 2021 despite a high basis of comparison TV 03:58 Radio* Internet** 03:49 03:54 03:41 03:44 03:43 03:42 3:54 03:36 03:30 03:50 03:46 03:37 03:38 03:39 03:35 03:37 03:22 3:21 03:08 1:18 4+ W<50 PDM 2:00 3:26 3:54 +1min vs Q1 2021 +39min vs Q1 2020 +8% vs Q1 2019 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Daily reach for TV Daily reach 44m people (26 million TV sets in 26.5m people (average age) France) +3.3m vs 2019 53 years old -1y vs 2019 Source: Médiamétrie – Médiamat TV – Q1 2021 * Source : Médiamétrie 126 000 – January -March 2021 – Total Radio - Indiividuals aged 13 and + - Monday - Friday – 5h-24h **Since June 2020, the measurement covers three-screen Internet (computers, tablets and smartphones). Internet Surf time 6 only. January to March 2021, average time / person / day TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY Clear leader among W<50PDM Increased leadership among 25-49 year-olds +1,6 pt vs Q1 2020 32.2% 31.6% 33.7% 29.4% 28.8% 30.4% 21.1% 22,6% 21.8%21,8% 21,1% 22.6% 19,7%19.7% 19.2%19,2% 2020,6%.6% Q1 2019 Q1 2020 Q1 2021 Q1 2019 Q1 2020 Q1 2021 Source: Médiamétrie - Médiamat 7 TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY, FOR INDIVIDUALS AGED 25/49 In % 30.4% 20.6 ∆ 42% audience share vs M6 14.5 4TH 9.3 FTA channel +0.8 pt vs W9 4.7 3.9 3.6 3.6 3.1 2.8 2.3 2.2 1.9 1.8 1.6 1.5 1.5 1.5 1.4 1.4 1.3 1.1 1.1 0.8 0.7 0.4 M6 F2 W9 F3 BFM TV C8 RMC déc. 6ter L'EQUIPE F5 CSTAR Gulli RMC St. C+ Arte NRJ12 F4 CNEWS Ch;25 F.info vs 2019 +1.4 +1.9 +0.1 +0.7 +0.2 -0.1 +0.2 -0.4 +0.1 -0.5 -0.3 -0.2 +0.3 -0.4 +0.1 +0.2 = -0.6 +0.1 -0.5 -0.4 +0.2 -0.1 +0.2 -0.4 +1.6 Source: Médiamétrie - Médiamat – Q1 2021 8 TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY, UNRIVALLED IN EUROPE Largest market share of any private Unrivalled lead in Europe over #2 sector European TV channel (% 2020 audience share of commercial target) ∆ VS CHALLENGER (% 2020 audience share of commercial target) 21.8 % +7.4 PTS 21.8 % 14.4 % 17.4 % 17.4 % +4.9 PTS 12.5 % 14.4 % 13.9 % +2,5 PTS 11.4 % 13.9 % 11.4 % +2.3 PTS 11.4 % 9.1 % 15,2 % +0.8 PT 14.4 % Source: Médiamétrie (France) – W<50PDM / Eurodata TV – BARB - Kantar Media (UK) – 16-44 yo / Eurodata TV – AGB – GFK (Germany) – 14-49 yo / Kantar Media (Spain) – 18-59 yo ABCD inhab. Cities > 10,000 inhab. / 9 Eurodata TV – Auditel – AGB Nielsen (Italy) – 15-64 yo FRENCH NET ADVERTISING MARKET: THE STRENGTH OF TV COMBINED WITH DIGITAL’S CAPABILITIES 2021 estimate of the digital advertising market in France at +7%, accounting for €6.5bn* Evolution of TV and digital advertising market (€ billion) Media net ad revenue (€M) Q1 2020 Q1 2021 Digital (excl. search and others) DIGITAL 1 376 1 499 TV (incl. digital TV since 2017) TV (incl. digital 741 747 revenues) 2,6 2,2 1,9 2,7 PRESS (incl. digital 313 301 revenues) 0,6 1,1 1,2 0,5 0,6 0,8 0,8 0,5 OUTDOOR ADVERTISING 222 151 RADIO (incl. digital 105 117 revenues) 3,4 3,5 3,4 3,4 3,1 3,3 3,2 3,2 3,2 3,3 3,3 3,0 CINEMA 19 0 TOTAL 13.4 12.2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: IREP – mars 2021 *SRI e-pub Observatory 10 2021: A YEAR OF CHANGE AND MONETIZATION Capacity to produce French Transposition of SMA New corporate drama with other European directive; tax rate producers objective is to share the (33% 25% in 2022) (26% 30%) burden of creation financing Dec. 2017 Jan. 2019 2021 Dec. 2018 Aug. 2020 From end January • New media chronology more Decrees authorizing: First segmented TV favorable to broadcasters • Addressable advertising campaign: • Cancellation of 3 taxes by • Advertising of cinema Red Bull, supported by its 2020 agency Spark Foundry • Broadcasting movies on TV (Publicis), is the first on additional days advertiser to operate a segmented TV campaign with TF1 PUB 11 2020 and Q1 2021: 2 STRONG ADAPTABILITY of the Group’s 3 businesses 12 INCREASED APPEAL OF OUR TOTAL VIDEO CONTENTS FOR YOUNGER GENERATIONS Audience share 22.2% 4.2% 3.0% 82% OF THE TOP 100 FOR TF1 GROUP 15/34 (record level - 20.0% in 2019) ACCESS DAILY SOAP Up to 33% audience share 57% audience share Up to 21.3% audience share Up to 20.7% audience share 4+ 24.1% 30.0% 9.9% 4.0% Source: Médiamétrie - Médiamat - 2020 - 15/34 & 4+ 13 A STRONG BOOST FOR THE GROUP’S CHANNELS st 1 French TV replay platform NEW AMSTERDAM ICI TOUT COMMENCE videos watched in 2020 2 billion Visuel (+10% vs 2019) Viewers experience +29% of viewers addition to linear TV +25% of viewers addition to linear TV 4.4/5 Apple store 4.3/5 Android store (+0.9 pt year to year) (+1.1 pt year to year) LES BRACELETS ROUGES KOH LANTA +23% of viewers addition to linear TV +11% of viewers addition to linear TV 14 CONFIRMED AGILITY OF THE ADVERTISING BUSINESS FOOD 17.5% +10.6% CAR INDUSTRY 11.6% -20.8% • The Group managed to reach a high COSMETICS / BEAUTY 10.5% -10.3% level of revenue while maintaining RETAIL the value of the advertising 9.5% +18.6% inventory HEALTHCARE 7.2% +19.6% BANKING / INSURANCE 7.1% +5.9% • TF1 delivered a healthy top-line TELECOMS performance, despite an ongoing 5.0% +29.3% decline in advertising spend in some SERVICES 4.9% +64.2% sectors (leisure, tourism and HOUSEHOLD CLEANING 4.7% +10.5% cosmetics) TOURISM / HOSPITALITY 2.8% -52.1% Other 19.2% +17.4% Source: Kantar media, Q1 2021 vs Q1 2020. Gross advertising spend (excluding sponsorship) for the 5-free-to-air channels. 15 MORE THAN EVER, CONFIRMED ITS POSITION AS A LEADER ON LOCAL CONTENT From 1 to 4 daily soaps between 2016 and Studios managed to shoot 2020, confirming Newen’s know-how and its over 200 days in 2020 ability to industrialize processes Up to 4.6m viewers 4.2m viewers 25.9% of audience share Up to 3.1m viewers among individuals aged 4+ on average among individuals aged 4+ among individuals aged 4+ Source: Médiamétrie - Médiamat 16 OFFERS A LARGE VARIETY OF CONTENT THANKS TO ITS GLOBAL FOOTPRINT CINEMA Erna at War Visuel Developped in 2020 TV MOVIES The Santa Squad TV SERIES ANIMATION DRAMA DRAMA DOCUMENTARY Ares Splat & Harry Candice Renoir Demain Nous Chambre 2806: Appartient L’affaire dsk BOOK OF ORDERS SCRIPTED REALITY REMAINING AT A HIGH LEVEL: 1,600 HOURS by end of 2020 GAME SHOW Brugklas Blokken 17 : STRONG Q1 AND GOOD VISIBILITY • Q1 2021 boosted by a catch-up effect in deliveries of some programmes • Demand for content is rising • Shooting continues in strict compliance with barrier measures • Book of order is up year-on-year in value terms • Newen takes a majority stake in the Spanish iZen group, pursuing its strong dynamic of international growth • New greenlights obtained for projects with platforms (Diamonds for Netflix and Marie- Antoinette for Canal+ 18 ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (1/3) PUBLISHERS: 5 strong brands with an increasing reach TRAFFIC X 3* MORE CONTENT MORE REACH MORE REACH MORE VOLUME versus 2019 on contents +14% sessions 40M GLOBAL FOOTPRINT +26% MORE TESTING, MORE AI PARTNERSHIP peak in spring 2020 (aufeminin, beauté test) page views to produce contents with new brands USERS: USERS: USERS: FY : 200,5M (2020) FY : 87,2M (2020) FY : 206,7M (2020) vs 59,8M (2019) vs 37,7M (2019) vs 202,9M (2019) ENLARGED BUSINESS MODEL POWERFUL INFLUENCE OFFER (affiliation, B2C, community activation) for the 5 brands *calculated using the number of sessions at end December 2020 Source: Harris 19 ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (2/3) BUSINESS SOLUTIONS : Back to expectations in Q4 KEY PARTNERSHIPS WITH: KEY PARTNERSHIPS WITH: GROWTH In Switzerland/Belgium RECOVERY In France in Q4 DEVELOPMENT IN EMEA Partnership with the Abou Dabi tourism office A STRONG GROWTH IN 2020 (SALES X2) STRONG EXPECTATION for influence from brands (due to PR challenges) 20 ADAPTATION OF THE 3 PILLARS, RELYING ON THEIR SOLID DIGITAL BRANDS (3/3) E-commerce 46 000 of sold 52 000 of sold boxes per month boxes per month 100 000 of sold boxes per month +17% +12% vs end 2019 vs end 2019 PARTNERING WITH MAJOR BRANDS January July June August Summer September September November December December MyLittleBox in Germany Gambettes Box in and Japan Netherlands and Germany 21 : SLIGHTDECLINEOF ADVERTISINGBUT HIGHERE-COMMERCE REVENUE • Advertising revenue from direct media and programmatic was down slightly year-on-year • Higher revenue in France (especially from Marmiton) partially offset lower international revenues • E-commerce revenue (subscription box sales) was higher year-on-year, driven by the My Little Paris and Gambettes Box lines • Advertiser services revenue was slightly lower, having been affected by the Covid-19 crisis and the postponement of some advertising campaigns 22 Q1 2021: 3 FINANCIAL RESULTS 23 Q1 2021 CONSOLIDATED REVENUE (€M) Q1 2021 Q1 2020 CHG.