2004 Annual Report
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Couv I,II,III,IV-dos9mm GB 20/04/05 12:32 Page 1 2004 Annual Report Télévision Française 1 A public limited company “Société Anonyme” with a share capital of €42,811,946 326 300 159 RCS Nanterre TF1 1, quai du Point du Jour 92656 Boulogne Cedex / France Tel. : (33) 1 41 41 12 34 Internet : http://www.tf1.fr 2004 Annual Report Couv I,II,III,IV-dos9mm GB 20/04/05 12:32 Page 2 Main subsidiaries’ and participations’ adresses 1, quai du Point-du-Jour TPS CINETOILE 92656 Boulogne-Billancourt Cedex - France TPS JEUNESSE TF1 PUBLICITE (www.tf1pub.fr) TPS MOTIVATION TF1 FILMS PRODUCTION TPS TERMINAUX TF1 DIGITAL TPS INTERACTIF ALMA PRODUCTIONS TPS SERVICES TFM DISTRIBUTION (www.tfmdistribution.com) MULTIVISION YAGAN PRODUCTIONS MULTIVISION GESTION CIBY 2000 SENT TFOU (www.tfou.fr) SOCIETE D’EXPLOITATION DU MULTIPLEX R6 - SMR6 3, rue Gaston-et-René-Caudron HISTOIRE 92448 Issy-les-Moulineaux Cedex - France USHUAIA TV EUROSPORT (www.eurosport.com) EUROSALES 305, avenue le Jour-se-Lève EUROSPORT France 92656 Boulogne-Billancourt Cedex - France e-TF1 120, avenue Charles-de-Gaulle TF1 ENTREPRISES ( www.tf1licences.com) 92200 Neuilly-sur-Seine - France SOCIETE D’EXPLOITATION ET DE DOCUMENTAIRES TF6 (www.tf6.fr) ODYSSEE (www.odyssee.com) SERIE CLUB (www.serieclub.fr) COMPAGNIE INTERNATIONALE DE COMMUNICATION - CIC Quai Péristyle - 56100 Lorient - France CIBY DA TV BREIZH (www.tvbreizh.fr) 9, rue Maurice-Mallet 3, rue du Commandant-Rivière - 75008 Paris - France 92130 Issy-les-Moulineaux - France TCM DA UNE MUSIQUE (www.unemusique.fr) TF1 VIDEO (www.tf1video.fr) Chemin du Dévent - 8 Victoria House TF1 INTERNATIONAL (www.tf1international.com) 1024 Ecublens - Suisse VISIOWAVE (www.visiowave.fr) 18, quai du Point-du-Jour 92656 Boulogne-Billancourt Cedex - France Tour Maine Montparnasse - 33, avenue du Maine TF1 PUBLICITE PRODUCTION (www.tpp.tv) 75015 Paris - France GLEM LES NOUVELLES EDITIONS TF1 TOUT AUDIOVISUEL PRODUCTION 26, rue Danton - 92300 Levallois-Perret - France 30-32, rue Proud’hon TELEMA 93210 La Plaine Saint-Denis - France 47, rue de la Chapelle - 75018 Paris - France STUDIOS 107 QUAI SUD TELEVISION 54, avenue de la Voie-Lactée 44, rue de Strasbourg - 44000 Nantes - France Contents 92656 Boulogne-Billancourt Cedex - France OUEST INFO LA CHAINE INFO - LCI (www.lci.fr) 35, rue Greneta -75002 Paris - France 145, quai de Stalingrad PUBLICATIONS METRO FRANCE Chairman’s Statement 02 Group’s Activities 22 92137 Issy-les-Moulineaux Cedex - France 5, rue du Mail - 75002 Paris - France Principal Directors 04 Broadcasting France 24 TELEVISION PAR SATELLITE - TPS (www.tps.fr) PINK TV TF1 Group Organisation 05 Distribution 36 TPS CINEMA TPS ENTREPRISES Key Figures 06 International Broadcasting 38 45, boulevard Victor-Hugo TPS GESTION TF1 Share 08 Audiovisual Rights 39 93534 Aubervilliers Cedex - France TPS SPORT TF1’s Competitive Environment 10 TELE SHOPPING TPS FOOT Group History 12 TPS STAR 40-42, rue Pierre-Curie - 93122 La Courneuve - France 2004, Key Events 14 TPS CINEFAZ SYLVER TF1 and Society 16 Financial Report 41 Coordination : TF1 IR Department. Design & Production: L’Agence Synelog - Tel.: 01 53 00 74 29 – Photos: DR, TF1, Gérard Bedeau, Christophe Chevalin, Etienne Chognard, Jean-Claude Roca, Jean-Marc Sureau, Julien Gauvin, François Pugnet, Patrick Roncen, Eurosport, Paramount Pictures, TPS, Warner Bros, Miramax Film Corp., Studios 107, TF1 International, Focus Features, Dreamworks, TF1 Films Productions, Entropie Films, Renn Productions, Eric Travers / Gamma, Yagan Productions, Touchstone Pictures, Histoire, Sportitalia, X. ACT 1/40/227x300 GB 20/04/05 11:23 Page 1 First French TV Channel 3 out of 4 French people watch TF1 every day Broadcasting France 89 out of the 100 best programs in 2004 23 thematic channels, of which Eurosport, LCI, TF6 and TPS Star A presence in 54 countries via Eurosport More than 20 million cassettes/DVD distributed in 2004 More than 2 billions pages viewed in 2004 About 20 French movies co-produced every year Distribution First French generalist channel, with an audience share of 31.8% in 2004, TF1 is although a built-in group of communication that develops, around its core business, activities in growth markets. International Broadcasting Since 1987, date of the privatisation and the entry of Bouygues in the shareholding structure, the TF1 channel has created new activities with strong added value, from its business of programs producer and broadcaster. Today, TF1 group activities cover the whole audiovisual industry: upstream in production, acquisition and sale of audiovisual rights, downstream in publishing and distribution of cassettes, DVD and music CD, derivative products linked to broadcasting (telematic services, derivative rights, games, contents and Internet web site) and the home shopping. TF1 expands as well in the pay TV market, with TPS, that distributes TV content to 1.7 M French households, through satellite, cable or ADSL, and with thematic channels that are today major components of the pay tv offer in France. Audiovisual Rights 2004 Annual Report 01 ACT 1/40/227x300 GB 20/04/05 11:23 Page 2 Chairman’s Statement Patrick Le Lay Chairman & Chief Executive Officer Dear shareholders, 2004 was a good year for the TF1 Group. The TF1 channel’s audience increased by 1.1% for women under 50 years and advertising revenue resumed strong growth at 6.6%. For all our French thematic channels, advertising revenue climbed more than 20%. These sources of satisfaction are not limited to “Broadcasting France”, but are reflected in most of the group’s other companies, notably TPS, Eurosport, TF1 Vidéo and Téléshopping. This annual report will be punctuated by the respective details. In an environment where the consumer has easy For 2005, these ambitions translate into: access to a multi-channel offer thanks to digital • general-interest, family-oriented and events-based technologies, TF1 Group’s successes are a good sign programming on TF1 that meets the expectations of for the future and reinforce the Group’s strategy our audience and our client advertisers; implemented since the late 1990s. This strategy is based on the following ambitions: • enhancement of our thematic offering in terms of • to remain the leader in the development of programmes content and channels, notably through the creation in France; of a “Discovery” division comprising Odyssée, • to continue to develop programmes and services Histoire and Ushuaïa TV (to be launched in 2005); distribution; • broadcasting TF1 over the digital terrestrial television • to consolidate Eurosport as the leading pan- (DTT) network as of March 2005, followed later by LCI, European channel. Eurosport and TF6; 02 ACT 1/40/227x300 GB 20/04/05 11:23 Page 3 "I continue to have great confidence in the future of our group, in its strategy, and in all the employees with whom I prepare to meet tomorrow’s challenges." Broadcasting Broadcasting France • the DTT broadcast of TPS Star, the TPS premium Taking into account a low visibility of the advertising Distribution channel, will complement the excellent launch of the market, TF1 channel advertising revenue should grow TPS offering over high-speed telephone lines (ADSL). “in the market”, i.e. between 3% to 4%, and TF1 Group Thanks to these new distribution channels, the multi- consolidated revenue should increase by approximately platform operator TPS will be accessible by the majority 3% to 5%. Moreover, programming costs growth of of French people; TF1 Channel should be 3.9%. • the accelerated growth of Eurosport, both in Eastern In conclusion, I continue to have great confidence in Europe and Southern Europe, where the launch of the the future of our group, in its strategy, and in all the Sportitalia offering was a success. These developments employees with whom I prepare to meet tomorrow’s were complemented in January 2005 by the creation of a new challenges by introducing new drivers of business channel, Eurosport 2, which, broadcast in four languages, and financial growth. is already received by over 10 million European subscribers. International Broadcasting Naturally, in the course of the coming year, we will grow our other businesses – video, distance shopping and audiovisual production and broadcasting rights, which should all have a new year of profitable growth. In addition, the TF1 Group has prepared for the new accounting standards, which should have no more than a limited impact on our results. We are leveraging Boulogne, this change to simplify and streamline our modus operandi and our structure so as to generate better Patrick Le Lay Chairman & Chief Executive Officer performance and improved profitability. Audiovisual Rights 2004 Annual Report 03 ACT 1/40/227x300 GB 20/04/05 11:23 Page 4 Principal Directors (February 2005) Chief Executives Patrick LE LAY Chairman Chief Executive Officer Etienne MOUGEOTTE Senior Executive Vice President Head of Broadcasting Claude COHEN Chairman of TF1 Publicité TF1 Main subsidiaries General Management Télévision par Satellite TPS Histoire Arnaud BOSOM Emmanuel FLORENT Gérard CARREYROU Director of Technical Resources Chairman and Chief Executive Officer Chairman and New Technologies TF1 Entreprises Jean-Michel COUNILLON Emmanuel FLORENT Série Club Senior Vice President Chairman Jean d’ARTHUIS Secretary General and Director Michel BROSSARD Chairman of Legal Affairs Chief Executive Officer TF6 Emmanuel GRADOS TF1 Vidéo Director of Human Resources Jean d’ARTHUIS Pierre BROSSARD Chairman and Internal Communication Chairman Michel KUBLER Téléshopping TV Breizh Director