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Good morning, this is the conference.
Thank you for joining the TF1 Group 2024 Full Year Results Conference Call. A reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions during the conference call. Should anyone need assistance, they may signal an operator by pressing star and zero. At this time, I would like to turn the conference over to Mr. Rodolphe Belmer, Chief Executive Officer, and Mr. Pierre-Alain Gérard, Executive Vice President of Finance. Please go ahead, gentlemen.
Good morning, and thank you for joining us. Of TF1 Group, Belmer, CEO of TF1 Group, Gérard, along with the CFO, the President of TF1 Group, will present TF1 Group full year results. On today's agenda, we'll first give you activities that will move business activities that will result in our final. After that, we'll update you on our strategy. And then we'll close the session as usual with the Q&A. For those of you who are joining us by phone, the broadcast will be on this presentation where you can see the webcast. You can also find it on our corporate website.
Let's turn to the first page of the substantive, if I may say so. First page number four, I'd like to share with you the key points that have been quite strong. What has been quite strong in a snapshot for the group audience. In a snapshot, the evolution of audience throughout the fiscal year. First, as recorded, strong year-on-year growth. Rating growth across the audience shares were resilient. Then audience growth, despite resilience during summer, despite Paris Olympics, which were broadcast on France Télévisions. The group immediately regained its leadership as a result in 2024.
As a result, management leadership among women maintained its leadership with a share of 23.5%. The target group of individuals aged 25 to 49, 5%. With 30%, the TF1 channel even increased its audience in the wide four-plus target group for the first time since 2021. TF1 Digital attracted 33 million streamers on average per month, and more than in 2024, and more than 32 million on average in Q4. Second element, group financial performance. The group's 2.6% revenue was driven by both media and studios. The group's advertising revenue increased by 2.6%.
Revenue growth in streaming, with a strong and stable growth in streaming, and stable linear growth. Stable linear advertising revenue generated by TF1 almost 40%. Almost confirming 40% platform's appeal. Confirming for advertisers. The platform's appeal to advertisers amounted to 297 million EUR, up, and the margin from activities 12.6%, slightly higher than in 2023 by 0.1 points. A distinctive performance in a year of accelerated digital transformation. The group maintained a strong financial position with a net cash of EUR 506 million , remaining stable at end December year-on-year. Remaining stable, the group therefore achieved 2024 targets in a year of major growth. Let's turn now to a detailed activity.
Let's turn now to a detailed activity review of Media and Newen Studios for Media and Newen Studios line of activities. The review of our linear TV activities as a reminder of our linear business. TF1, as a reminder, is unrivaled. TF1 is the key factor: reach and affinity, the key factors we deliver to the partners, the value we deliver in 2024. The group maintained in 2024 reach and unrivaled coverage reaching 20 million people every day, reaching well above 20 million people every day in other media businesses, well above any other media business and SVOD such as YouTube and SVOD. The group maintained its leadership despite the Paris Olympic Games.
From the Paris Olympic Games, TF1 channel retained its leadership position in commercial target of almost 23% of women below 50 ahead of its closest competitor, and more than 20% ahead of its closest competitor in the 25 to 49 year old target. Switching to page seven, commenting more on the linear performance of the group in 2024. The group offered a solid line of program, performing well in linear, and also performing well in linear program.
The TF1 channel maintained its position across all positions, confirming the relevance of its programming strategy, its leading audience strategy among the 25- to 49-year-olds, particularly with the launch of the daily soap Plus belle la vie, which improved our position significantly, with a 15 percentage point increase in audience share of our daily soap. Confirms and strengthens our daily soaps and the morning show Bonjour ! continued to gain popularity among the French audience share, its double time slot, the audience share in the 4+ target group to 9% on average in 2024, more than 10% and even reached more than 10% at the end of the year.
The distinctiveness, as a reminder of the strategy implemented with TF1, the strategy implemented with the group's solid lineup of programming to initially address linear and non-linear exploitation, preparing for specific programming cost. This strategy has been successful, as the total audience of our group was stable full year year-on-year, with non-linear consumption offsetting the decline in linear viewing time.
The decline in linear is reflected by the seven-point increase among the 25-34 non-linear consuming year-olds, year on year for the TF1 channel, yet 20% of the reach, this 20% of the consumption, even higher this share on our strong franchise, reaching up to on our strong franchise, 25% of the reach up to 45% of the consumption. Non-linear now the group's success in attracting the linear springboard audience for TF1+ development, is a reminder TF1+ development. Our objective as a reminder TF1+ is to become streaming platform in France and also expanding now in 2024.
The platform made significant progress in 2024 on the building blocks underpinning its development. Aided by non-linear stood at 7.8%. Stood at 40% TF1+ in 2024, TF1+ at 5.24, 5 points in a year on visibility in a year. TF1+ visibility at 58% on connected TV, beating the initial target of 55%.
TF1+ attracted 33 million streamers on average per month, and more than 34 million on average in Q4, compared with only 1.2 billion hours of content for MYTF1. 1.2 billion hours of content were watched on the platform in 2024, representing five times the usage of the second-ranked competitor based on our site-centric figures, 55% increase year-on-year. TF1+ is the market leader among individuals, 15%, with a monthly reach of 75%, illustrating this targeted appeal among the younger generation.
Ad inventories now. Ad load reached five minutes. Ad load reached on average in 2024 hour compared with average in 2024 historically compared with TF1, and historically. To note TF1 that this is an average. Important to note that this is an average is already and that the higher for some is already target higher for some. These promising results show our target on track to achieve our target in the medium term hour of ad load and on the value of the monetization side and on the value of track the monetization side we are also increasing our goal of increasing EUR 15 which is our up to target EUR 15. We reached already target EUR 13.5 already in 2024 coming from EUR 12 in 2023 that coming from myTF1 the year before in 2023.
Looking now at the production line of business, Newen Studios. 2024 with a 5% increase in its revenue, double-digit margin. The return to a double-digit margin was marked by the strengthening of synergies of the group with the latter, notably by the launch of Plus belle la vie on TF1 in January 2024.
It was marked by the normalization with the renewal of the scripted program, the Magazine de la Santé, its daily program, another two years, the delivery of productions such as Marie-Antoinette, such as the second season on Memento Mori, for example as on Prime Video, as well as theatrical releases with Jamais sans mon psy, and finally the closing of the acquisition of Johnson Production Group, the closing of the acquisition of July, further strengthening of new acquisition movie in a dynamic and resilient TF1 movie gives new and privileged long-term access, which is to the north mid-term activity we secured, mid-term activity output secured by.
Now let's turn to our financial performance with Mr. Pierre-Alain Gérard of the group.
Good morning everyone. Let's do a morning breakdown of our financial results. You will find additional information in our consolidated financial statements, as well as our management reports, all of which are available on our website. First, a word on our good Q4 TF1 consolidated revenue, TF1 Group's consolidated revenue, EUR 765 million, an increase of 2%. Revenue from the media segment was broadly stable at EUR 612 million.
Advertising revenue was down 2%, slightly better than the company compiled comparisons, outperforming by consensus despite outperforming the market comparison with the rugby world champions. The more challenging market conditions in the last two months, Newen Studios revenue rose to EUR 116.53 million in 2024, EUR 53 million increased by numerous deliveries, driven as a contribution by numerous deliveries and the contribution of Johnson Production Group. For the full year, TF1 Group's consolidated revenue total increased by 3% year-on-year, driven by its two business segments.
Advertising revenue in the media segment was up. Linear advertising revenue was stable despite unprecedented competition from the Olympic Games in the last two months of the year. In the last two months of the year, advertising revenue generated by TF1 was up EUR 146 million to EUR 146 million in 2024, with almost 40% confirming the platform appeal for advertising. We only disclose advertising revenue here, which would be non-streaming revenue, which would be non-advertising revenue in the media segment. Non-advertising revenue in the media segment EUR 168 million up to EUR 368 million , up 2%. Newen revenue grew by 5%, notably benefited at the end of July.
Newen acquired JPG and total revenue without Newen and total revenue remained stable year-on-year given its higher activity with TF1. On the next page, COPA amounted to EUR 99 million in 2024 year-on-year, and in line with our company-compiled consensus, margin from activities rose by almost 2%, rose in the media segment, driven by the media segment. For the full year, COPA was EUR 297 million, margin from activities was 12%, slightly higher than 2023, and therefore achieving the target of above 12% and therefore achieving the target in a year of major transformation.
The media segment reported a margin of 12%. The media segment reported a margin of 4. 9%, similar to last year. 4.9%, similar to last year, despite an increase in programming costs and investments. Although momentum in the linear advertising market was weaker than expected at the end of the year, the disposal of Ushuaïa enabled the group to maintain an accelerated investment in Newen and margin from activities. Newen and margin from activities returned to double-digit territory at 11%.
On the P&L statement, I have already commented on the company, so looking further down, operating profit is up 1.2 to EUR 271 million year-on-year, up EUR 18 million year-on-year. This figure included other operating expenses of minus EUR 18 million, the extension of the career management called GEPP, which was signed in July 2023. Net profit attributable to the group was EUR 200 million. It included a higher level of non-controlling interest than last year, as we now take into account the minority shareholders for both JPG and Reel One.
On cash flow, on the following page, at the end of 2024, with a net cash of EUR 506 million, with a free cash flow before working capitals at EUR 229 million versus EUR 177 million last year, free cash flow after working capitals EUR 191 million euros and JPG and payment to acquire JPG million in payment in EUR 116 million in dividends. In line with our distribution policy, the board of directors will propose to the general meeting of shareholders the payment of a dividend of EUR 0.90 per share and representing an attractive dividend yield.
I now leave the floor to Rodolphe to provide an update on our strategy and outlook.
Thank you, Pierre-Alain. To celebrate the 50th anniversary of TF1, the TF1's 50th mission, for the past 15 years, the TF1's mission has been to entertain people together through diverse range of high quality programs, as well as a comprehensive news coverage. The group's ambition is primarily to establish itself as the TV's primary premium distribution TV screens and quality news for family entertainment in French language.
In a context where linear usage is shifting from linear to priority viewing, the group's strategic priority is enabled to finance a virtuous model with superior production values to sustain superior production leadership, sustain its long-term leadership. Our three prongs as follows: Strategy is to strengthen the group's leadership in the linear TV market, become the leading free streaming platform in France, reinforce French-speaking studio acquisition on the international stage by leveraging TF1 brand appeal. The first pillar of our strategy is to consolidate our linear market revenue in a flatish linear advertising volumes, the ad revenue volume TV ad of TF1.
Our TV and TF1 is a differentiating factor for us, offering is instrumental in an increasingly fragmented media environment, the best for our advertising inventories.
To maintain this advantage, we have secured all our main entertainment franchises and The Voice. We have to renew also our line of renewed fiction with the wide universe of new heroes: Carpe Diem , Flashback, and Carpe Diem among others. We have signed among others co-productions with streaming platforms, for example. And we have invested in the flagship, should I say, of 2025 with the Euro, with the women's football and the women's rugby world.
We also intend to implement a distinctive pricing strategy at house, our channels with ambitious goals, transforming channels with ambitious over the next few years, starting in 2025. We are switching from the historical 30-second format to the 20-second format to a shorter duration ad format. In 2026, we will further segment commercial offerings by distinguishing premium, the highly powerful TF1 and premium, which have unique value in the market through offering what we call the peak.
At the same time, offering the reach of our advertising inventories, the rest will encompass all of our multi-channel inventory, representing one-third of the total market, to compete effectively for market share with our peers. Finally, in 2027, we will launch a multi-screen self-serve platform of the reach inventory for enabling programmatic purchasing, for enabling dynamic purchasing, for greater activity among our customers and the advertising and media agencies.
The seventh pillar of our strategy is to increase our revenue by gaining market share, our non-linear revenue by gaining market share, advertising market, digital video advertising market, to establish TF1+, alternative to YouTube, first an alternative for viewers, to offer a premium experience to viewers, video streaming platform best in class, video streaming platform. The group intends to continue extending its platform's rollout among French-speaking nations. The next step is the expansion of the platform in Africa to reach more than 15 million people.
We will also continue to offer through our aggregation content strategy the TF1+ catalog to enhance the complementary TF1+ catalog with complementary content to be an audiovisual content lineup of above 30,000 current lineup of content at this time, therefore getting closer to the Netflix offering in an aggregation model with revenue sharing approach. From the start, we also designed TF1+ as a platform for advertisers, distinctive with innovative formats and distinctive advertising formats powered by data. The first driver is data, the data-enriched TF1+ driver which relies on in-depth knowledge.
The group launched a major innovation in January 2025, which is the new single access point for information about users of TF1+ and also the TF1 Info of the group. The overall data it gathers of the group, around million TF1+ users million TF1+ flows for user profile and flows for granularity with targeting 1,200 data segments. Advertisers is the ability to use Retail IDs is the ability to use campaigns and also every stage of the campaign, and also significantly optimize the insight of the advertising.
In addition, TF1 Group has signed an exclusive agreement with a collaboration platform that is interoperable with all the clean rooms available in the French advertising market. Second driver is the advertisers adopting more sophisticated marketing strategies and that's creating brand interaction throughout consumer lifetime value beyond awareness. TF1+ will be the first platform to address advertisers' needs across the entire marketing funnel to convert to an improved ad tech thanks to an improved ad tech. While most platforms on the market will offer innovative ad formats in Q1 of 2025.
In Q1 of 2025, we have immersive formats on the home page, immersive formats displays on the home page, when a viewer pauses at display program, when a viewer pauses build product program, we have banners build product collections of content, we have banners around the theme to develop brand image with customers, strengthen the intimacy with customers with Star Academy and around the Star Academy ad format to gamify the ad experience, engagement, collect more data user and the possibility to facilitate consumer send to phone purchase with a send to phone with advertisers redirect to website direction, that what we call the shoppable ad format.
Now turning to the production activities, we will also rename Newen Studios to Studio TF1 next month to line up Studio TF1 with major global players, simplifying our identity, reinforcing our reputation, reinforcing its global reputation and reliable, stable, ambitious and reliable for our customers. The move will increase our studio profile, leveraging our studio global recognition of TF1 global recognition.
The focus of Studio TF1 will be also property development, global co-production, the company's existing global distribution activities encompass international rights which encompass successful international production like successful production. Strategy will be crucial for rebranding will also strengthen the synergies with the media in particular illustrated by the launch of the new daily series 2025, which will be streamed on TF1 and also on Netflix and also in. Studio TF1 will also expand its focus on film with a double TF1 production by 2027 with 10 to 15 films annually. Studio TF1 will operate and collaborate with third party producers and also collaborate with TF1 film production for the financing broadcast TF1 channel major projects in 2025 including starring Natacha comic adaptation of comic series.
Finally, Studio TF1 will have a new Studio TF1 distribution. It will launch next year. Theatrical distribution, among other benefits, it will give more control over the crucial release window of the theatrical movie. Guidance now for 2025 in an advertising market with limited visibility. The group's outlook is as follows: strong double digit revenue growth in digital, margin from activities broadly stable, for a growing dividend policy in the coming years.
To sum up, we delivered a robust performance in 2024, maintaining our commercial targets, despite our commercial target coverage, despite the Olympics, France Télévisions coverage. We grew revenue in both with our business segment revenue media and production for our business segments.
TF1+ was launched successfully and was launched close to monthly throughout the year, confirming for both its advertisers' attractiveness and for both streamers' advertisers. Newen Studios margin return to double-digit margin territory from activities. The group's margin slightly from activities, thereby achieving broadly the target, and the group's stable EBITA margin from a stable financial position at the end of 2020. Financial position at the end of 2024 was a defining year for our group. Significant progress we have made digital in the execution plan of our and achieve our financial objectives transformation during a year for our major transformation. That's all for these words of introduction. Thank you for your attention and we are now ready to take your questions with Pierre-Alain.
This is a conference operator. We will now begin the question. Anyone who wishes to ask a question may press the button. Star and one. To remove yourself from the question queue, please press the button. Star and two. When asking questions, please pick up the receiver. The first question comes from Conor O'Shea of Kepler Cheuvreux.
Yes, thank you. Good morning, everybody. Thank you. Three questions from my side. First question on advertising. Color at the start of the year.
A little bit of color at the start of the year and main competitor was quite the possibility about picking up some of the like EUR 100 million I think plus revenues from when they start broadcasting. You see a similar opportunity. A second question: can we have a little bit more color on the outlook for Studios FY 2025? Would you see year on year activity growing given deliveries in the pipeline? The third question may be for Pierre-Alain on the announced tax increases in France this year and next year to assess the potential impact, EPS effect on the effective tax rate in those years. Thank you.
Thank you, Conor, on your question on the advertising trajectory projection for 2025. Of course we are prudent on this subject since as you know our market lacks visibility and this lack of visibility is even more pronounced surrounding macro considerations. Still, that being said, we must say that first we are very clear that our digital initiative TF1+ continues to have a very strong momentum in 2025, solid double digit as we say both. And when we look at the elements we have, we have some estimates of the evolution of the advertising market. We can say that the first two months of the year, January and February, are in line with our expectations and objectives in terms of advertising revenues for the group. Another indicator is the annual engagements that, as you probably remember, advertising revenues of TF1 are structured with significant annual engagements that our customers take with our spend, typically negotiated now during the negotiation, and those engagements they represent roughly 70% of the total annual revenues of the group in terms of advertising, which means that it is quite a significant sample of our results. And what I can say now is that with those engagements and the level of engagement that we have, it confirms for us the idea that we in 2025 in terms of advertising should be in line with our objective. On the studio side, 2025 will be as it was in 2024, notably because core business will remain the studio but also will benefit from the consolidation of the entire JPG fiscal year 2024-2025. It is where it was; it brought revenue and it only brought revenue in 2024 for five months.
On the tax consideration, from what we understand at this stage, the tax impact should be the same magnitude, meaning around EUR 20-25 million.
for 2025? Okay. And so just one quick follow-up: nobody asked the question on programming costs for 2025. At this stage, that is a similar level to 2024, slightly below, slightly above?
With the order of magnitude, we can say it is similar. We try to slightly grow our programming cost every year, continuing to provide a superior line-up to viewers and to our advertisers as the key underpinning of our superiority on the broadcast market, but this is the French market of course, continuing to produce a broadly stable margin for the group.
Thank you. Many thanks.
The next question is from Jérôme Bodin of Oddo BHF.
Yes, good morning. On TF1+, so first on pricing per CPM, so 2024 or low significant 13%.
Too low if I'm right, slow down. Are you expecting to slow down the growth in 2025 and the growth impact and its component of growth in terms of TF1+ growth 2025 versus 2025 in terms of price volume and international expansion last year but it's different from last year. My second one is on cost closure specifically on the marketing plan for TF1+ in 2025. This cost to be flat or down after TF1+ and lastly on follow-up on can you help us to the margin to forecast this year because I guess that for this year because I guess that the team Johnson Production Group expect that the team margin improvement we expect margin improvement next year. Thank you.
Yeah, well, Johnson Production Group is definitely. I wouldn't say slightly. It is definitely equity but what I leave the question to equity but what I leave the question to. On to start on your well to start with your first question on the key building TF1+ and the building drivers of building blocks TF1 and the building drivers of in 2025 growth in 2025. As we said committing to an objective of strong revenue growth in 2025. The right way as you said used rightfully pricing and more importantly usage actually there are three main factors. Number one is actually pricing. We are today at EUR 13.5 per CPM coming from EUR 12 midterm target and that EUR 15 in 2025 will continue to grow but less pronounced growth than 2024 and the source of growth in terms of pricing development comes from the datization of our inventories today we sell only 60% data of our inventories and we tend to grow the percentage to sell of our inventories that we are able to sell higher with data because they will become of course. Second element of growth add load we are able to on our viewing hours today we have today load we charge hours of viewing we load five minutes each hours of viewing of advertising coming from four minutes a year ago. 2027 our target of six in 2027 is that we continue to add advertising load in 2025 and in 2026 it's another building block of the growth. Third element which is the most important last year we have grown our viewing on TF1+ by 55% year- on- year. We continue to develop very strongly in this area the consumption wise and we continue very significantly continuing to produce growing number of hours streamed in 2025 elements meaning key factor growth the key underpinning factor of growth for 2025. The last point international it will provide only modest international growth probably representing a small percentage point total our total revenue in TF1+ revenue in 2025 and that's what I can say on this. Marketing subject cost marketing we continue to invest in 2025 develop proof it promote developed in terms of technology TF1+ in terms of technology marketing support and distribution platform but what the vast majority of the 2024 we continue to invest a bit more in 2025 but in a proportion than in meaning that we can continue develop very strongly TF1+ while as we said the growth is stable in 2025 as we did in 2024 we were able to establish TF1+ as a leading platform with 1.2 billion views which is massive of an initiative we were able to develop our initiative on of the most significant TV screen French people we were able to establish ourselves commercially when we are able to advertise and then slightly when we are able to our profit margin by we grow pointwise our profit margin by point and that's the key frame of our strategy continue to push our strategy continue to push strongly which has a very significant TF1+ which has a very significant potential and still very significant headroom and still very significant headroom we are very very serious for growth while maintaining we are very very serious discipline and maintaining the group and the frame financial discipline financial and the group and the frame of our financial platform.
On you and you're right Jerome on you and you're right he is equity on the margin but we don't guide on but as we usually say in Europe between 10% and 15% of operating we see in one double digit territory in 2025.
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okay well thank you thank you very much thank you for your attendance and very much for your summer attendance and well this summer meeting today meeting what we want to achieve today we believe that we want to achieve a very robust performance we believe that we achieve a very robust performance very distinctive in 2024 very distinctive we're able to maintain our sector we're able to maintain our maintain our linear revenues we maintain our linear revenues we're able to almost grow very significantly by establishing TF1+ as the leading establishing TF1+ as the leading France expanding now in Belgium in France and expanding now in Belgium Switzerland while we're also in Switzerland while we're also able to maintain a slightly growth of the group profitability of the group meaning that was defining year 2024 was our defining year paving the way for the future of our paving the way for the future thank you very much for your attendance and participation thank you very much for your see you in six months and see you in six months for myself and maybe thank you very much for thank you very much
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