Fy 2020 Results Investor Presentation Tf1 Group: a Diversified Portfolio with Content Production, Broadcasting and Digital
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POST FY 2020 RESULTS INVESTOR PRESENTATION TF1 GROUP: A DIVERSIFIED PORTFOLIO WITH CONTENT PRODUCTION, BROADCASTING AND DIGITAL TV CONTENT PRODUCTION & DISTRIBUTION BROADCASTING DIGITAL DRAMA FTA CHANNELS PUBLISHERS THEME CHANNELS DOCUMENTARIES ANIMATION OTHER BROADCASTING ACTIVITIES BRAND SOLUTIONS AND SERVICES ENTERTAINMENT/ TALK SHOWS TV MOVIES SOCIAL E-COMMERCE DISTRIBUTION 2 TABLE OF CONTENT A MAJ OVERVIEW OF TF1 GROUP PROFILE AND THE 1 FRENCH MEDIA MARKET (P.4) 2020: STRONG ADAPTABILITY OF THE GROUP’S 3 2 BUSINESSES (P.13) 3 2020: FINANCIAL RESULTS (P.23) 2021 AND BEYOND: THE GROUP IS IN A GROWTH DYNAMIC WITH OPPORTUNITIES IN BOTH CONTENT 4 AND DIGITAL (P.32) 5 APPENDIX (P.38) 3 OVERVIEW OF TF1 GROUP PROFILE 1 AND THE FRENCH MEDIA MARKET 4 2020: TV IS MORE THAN EVER A VERY POWERFUL MEDIA TV 03:56 03:58 Radio* Internet** 03:49 03:54 03:42 03:41 03:44 03:43 03:42 03:36 03:30 03:47 03:50 03:46 03:32 03:37 03:38 03:39 03:35 03:37 03:22 03:08 1:18 4+ W<50 PDM 2:10 2:25 3:54 +11min vs 2019 +19min vs 2019 +24min vs 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 – FY 2020 / Radio : Q1 2020 / Internet: end of August 2020 - 4+ *Source: Médiamétrie - Global Radio - Vague Septembre-Octobre 2020, tous supports ** Internet Surf time only 5 2020: TV IS MORE THAN EVER A VERY POWERFUL MEDIA The Attention Market +24 minutes vs 2019 3h54 +14 minutes Of TV consumption vs 2019 Per day in 2020 Of +5 minutes Of which 3h39 vs 2019 live TV 52min ONLINE VIDEOS Per day in 2020 13min For SVOD per day in 2020 (2h19 per day for SVOD subscribers) Daily TV consumption among individuals aged 15/34 in 2020: 1h54 (+15min year on year) Note: figures represent average viewing time per French per day Source: Médiamétrie - Médiamat - 2020 6 TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY Clear leader among W<50PDM Increased leadership among 25-49 year-olds +0.7 pt since 2017 32.6% 32.6% 32.4% 29.3% 29.4% 29.9% 10.6% 9.8% 22.5%22,5% 22.0%22,0% 21.8%21,8% 20,1%20.1% 19.6%19,8% 20,1%20.1% 2018 2019 2020 2018 2019 2020 Source: Médiamétrie - Médiamat 7 TF1 GROUP: A WINNING, MULTI-CHANNEL STRATEGY, FOR INDIVIDUALS AGED 25/49 In % 29.9% 20.1 ∆ 53% audience share vs M6 13.1 4TH 9.0 FTA channel 1.2% +0.5 pt vs FR3 aged 4+ 4.2 +0.2 3.7 3.7 3.4 2.9 2.9 2.7 2.6 2.2 1.8 1.7 1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.1 1.0 0.7 0.7 M6 F2 F3 W9 BFM TV C8 RMC déc. 6ter F5 NRJ12 CSTAR RMC St. C+ Gulli Arte F4 L'ÉQUIPE CNEWS Ch;25 F.info vs 2019 +0.3 +0.2 = -0.2 -0.2 +0.1 +1.2 -0.6 = = +0.1 +0.1 -0.1 -0.5 = +0.3 -0.1 +0.1 +0.2 -0.5 -0.1 +0.5 = +0.3 +0.3 +0.5 Source: Médiamétrie - Médiamat - 2020 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 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 10 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 (€bn) 2019 2020 Digital (excl. search and others) DIGITAL 5.9 6.1 TV (incl. digital TV since Search 2.5 2.6 2017) Display 1.2 1.1 Social 1.4 1.6 2,6 Others 0.8 0.8 2,2 1,9 2,7 3.4 3.0 0,6 1,1 1,2 TV (incl. digital 0,5 0,6 0,8 0,8 revenues) 0,5 PRESS (incl. digital 2.0 1.6 revenues) OUTDOOR ADVERTISING 1.3 0.9 3,4 3,5 3,3 3,2 3,3 3,3 3,4 3,4 3,1 3,2 3,2 3,0 RADIO (incl. digital 0.7 0.6 revenues) CINEMA 0.1 0.02 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 11 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 12 2020: 2 STRONG ADAPTABILITY of the Group’s 3 businesses 13 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+ 14 THE TF1 CHANNEL DELIVERED A UNIQUE PERFORMANCE IN EUROPE 92 of the Top 100 audiences among W<50PDM 89 of the Top 100 audiences among 25/49 year-olds 74 of the Top 100 audiences among individuals aged 4+ NEWS ENTERTAINMENT FRENCH DRAMA MOVIES US SERIES Up to 9.8m viewers for 8.8m viewers 8.3m viewers 7.5m viewers Up to 5.8m viewers the JT du 20h news show 40.5% of audience share 51% of audience share 27.4% of audience share Leader on 3 commercial among 4+ among 4+ among W<50PDM among 4+ record since targets 2006 Source: Médiamétrie - Médiamat - 2020 15 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 16 AD SALES: A STRONG Q4 THANKS TO 3 MAJOR ACTIONS Increase in TV advertising revenues in the second half of 2020, with a strong Q4 (+5.9%) A first half severely affected by the impacts of the Covid-19 crisis (-25.9%) Full year TV ad revenues down by -152M€ (-9.7%) Working hand in hand with Innovative commercial offers Widening our customer base our historical clients during for small and medium companies with 80 new entrants on TV and after the crisis 17 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 18 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 19 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 20 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) 21 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