Good afternoon. This is the conference operator. Welcome, and thank you for joining the TF1 nine-month 2026 Results Conference Call and Webcast. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.
Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Pierre-Alain Gérard, Executive VP, Finance, Strategy, and Procurement. Please go ahead, sir.
Thank you. Good evening, everyone, and thank you for joining us for our nine-month 2026 result presentation. I will walk you through the group's performance for the third quarter and the first nine months of the year before we open the floor for questions. Let me start with the key highlights of the period, beginning with Q3.
On digital, TF1+ advertising revenue growth accelerated to 20.5%, driven by the contribution from our partnership with Netflix, launched in late June. On linear, our leadership strengthened as soon as the FIFA World Cup ended.
Over August and September, the group's audience share rose by 1.7 points among women below 50 and by 1.4 points among 25- 49 year olds. As a result, our advertising market share rose by 2 points year-on-year in a linear market which is under strong pressure.
On Studio TF1, activity was sustained as anticipated, with revenue up 11% in the third quarter. As a result, over the first nine months, group revenue amounted to EUR 1.45 billion, down 6.6% like-for-like and at constant FX, with advertising revenue of EUR 1 billion, down 9%. COPA stood at EUR 110 million, with a margin from activities of 7.6%, in line with our 2026 roadmap.
Our financial position remained very solid, with a net cash of EUR 382 million as in September. In terms of outlook, with visibility remaining limited, we maintain our 2026 targets.
Let's go now into more detail. I first give you a quick update on our business segments. We'll then provide additional information on our financial results before moving to the outlook, and we'll close with a Q&A session. Let's start with the business review.
At end September, the groups maintain its linear leadership across commercial targets, and the TF1 channel kept its significant lead over its main competitor. This performance is particularly noteworthy given the very competitive environment, including the Winter Olympics at the beginning of the year and the FIFA World Cup.
As soon as the World Cup ended, the group strengthened its leadership, gaining audience share across its commercial targets, and went on to deliver a record start to the season with an all-time high audience of 36.9% among women below 50 in September.
This reflects the strength of TF1's editorial offer across all major genres, like sport with the French national football team, drama with "La Cible," and entertainment with the return of our major franchises such as "Koh-Lanta," "The Voice" and "Secret Story." News also continued to perform strongly, confirming its central role in the democracy debate ahead of the 2027 presidential election.
LCI recorded the strongest growth among news channel in 2026, and "Bonjour" achieved its best month since launch in September. Overall, the group once again demonstrated the resilience and appeal of its premium content offerings. Let's move now to streaming. TF1+ growth accelerated in Q3.
The platform attracted 42 million streamers per month on average over the first nine months, up 15% year-on-year, with its second month ever in September at 43.5 million streamers. 857 million hours were streamed on TF1+ by end September, according to Médiamétrie.
On a more relevant site-centric basis, consumption grew by 13% year-on-year over nine months. After a growth of 7% in the H1 , it accelerated to 30% over the summer, driven by the Netflix partnership. This partnership, launched at the beginning of the summer, is performing ahead of our expectations.
Nearly one in two Netflix subscribers in France have watched at least one TF1+ program since launch, and several of our programs have ranked among Netflix top 10 titles. On the monetization front, ad load averaged five minutes and 10 seconds per hour over the first nine months, up 1% year-on-year.
The average CPM for standard format stood at EUR 12.7, excluding innovative formats, which are sold to higher CPM. We continue to develop these formats such as Carousel Retail Ads launched in September, which also contributes to TF1+ advertising revenue growth.
As a result, TF1+ advertising revenue reached EUR 160 million at September 8th , up 19% with growth accelerating to 20.5% in the third quarter. After proving its strong appeal to viewers, our partnership with Netflix will continue to gain momentum. The group's overall digital revenue almost reached EUR 200 million in the first nine months, up 16.5% year-on-year.
Our mid-tail offer, launched through TF1 Ad Manager platform, is ramping up with around 1,000 SME clients since launch. Through its three partnerships with local sales house, TF1 leverages local market knowledge to collect SMEs with its premium video offering. Its network of 70 certified business partners complements this coverage.
These experts help local businesses create, manage, and optimize videos campaign on TF1 Ad Manager, from campaign setup to performance monitoring, combining TF1+ streaming and addressable TV. Lastly, micropayment gained traction in the third quarter, particularly in September.
Around 2 million transactions have been completed since the beginning of the year, including around 850,000 in September alone. On average, each converted streamer has made around four transactions per month in Q3. This was driven by our back-to-school lineup and the continued rollout across telecom operator.
The offer has been available on Free eligible set-top boxes since mid-September, where transaction volumes match those achieved on SFR and Bouygues Telecom within only a few days. Now turning to slide eight for Studio TF1.
Revenue amounted to EUR 218 million at end September, up EUR 5 million or 3% year-on-year, driven by 11% growth in the third quarter, notably thanks to international deliveries. Over the nine months, Studio TF1 has continued deliveries to its longstanding partners in France, such as TF1, of course, but also France Télévisions.
It further expanded its international collaboration, notably with Channel 4 and Channel 5 in the U.K., and continued to diversify its client mix with deliveries to streaming platforms such as Hallmark+, HBO Max, and Netflix. The period was also marked by the first two theatrical releases of our distribution division, including Pour le plaisir, Good Vibes Only, with more than 700,000 admissions in France and strong international potential.
Let's now turn to financials in more detail. First, revenue on page 10. Group revenue amounted to EUR 1.45 billion over the first nine months, down 6.6% like-for-like and at constant exchange rates, slightly above company compiled consensus. In the media segment, advertising revenue was EUR 1 billion over nine months, down 9%.
The structural decline of the linear advertising market was exacerbated by particularly unstable geopolitical and domestic environments, and in July and June, by the exceptional competitive environment related to the FIFA World Cup. However, as soon as the World Cup ended, our ad sales house regained advertising market share by around 2 points over August and September, according to internal estimates.
This demonstrates the strength and distinctiveness of our advertising slots for advertisers. On streaming, TF1+ advertising revenue grew by 21% to EUR 51 million in the third quarter, an acceleration compared to the H1 , thanks to the Netflix partnership. Over nine months, digital advertising revenue reached EUR 160 million, up 19%, and the overall digital revenue amounted to EUR 198 million, up 17%.
Non-advertising media revenue was EUR 214 million, down 19% on a reported basis, mainly due to the scope effects from the disposal completed in 2025, namely My Little Paris and Play Two. Excluding scope effects, it only decreased by 5%, and it was mainly due to the base effect on the sale of women's sport matches to France Télévisions in Q3 2025, and to the termination of certain distribution agreements with Canal+ in Q3 2026.
At Studio TF1, revenue amounted to EUR 94 million in the third quarter, up 11%, and to EUR 218 million over the first nine months, up 3%. This growth was driven by international activity, up almost 12% thanks to deliveries to broadcasters and platform into distribution deals. Turning now to profitability.
Current operating profit from activities amounted to EUR 110 million over the first nine months, with a margin from activities of 7.6% compared with 10.9% before capital gains last year. This margin level was above company compiled consensus and in line with our 2026 roadmap.
Year-on-year, COPA decreased by EUR 81 million and by EUR 64 million excluding the capital gains realized in the first nine months of 2025. In media, COPA stood at EUR 104 million at end September. The decrease mainly reflects the decline in high margin in the advertising revenue, partly offset by digital growth and cost discipline.
Programming cost total EUR 618 million, down EUR 44 million year-on-year, including a EUR 26 million decrease in the third quarter. In the second and third quarter, we adapted to a deteriorated market, but also to the exceptional competitive environment of the FIFA World Cup, notably through programming cost arbitrage.
Over the nine months, other costs also remained under strict control. As a result, the media margin from activities stood at 8.4% over nine months, compared with 11.1% before capital gains in the first nine months of 2025. At Studio TF1, COPA amounted to EUR 10 million in the third quarter and EUR 6 million over nine months, down EUR 14 million year-on-year.
It mainly reflects a base effect linked to deliveries to Netflix in 2025, "Blind Sherlock," "All for Light," and "From Rockstar to Killer." Second, the TV movie delivery schedule more heavily weighted towards year-end 2026, as we have announced.
Overall, nine months profitability confirms the group discipline execution in a challenging environment. Let me now move to the income statement. I have already commented on revenue and COPA. Operating profits stood at EUR 102 million in the first nine months.
No particular items to highlight beyond the amortization of the PPA related to JPG for EUR 4 million and EUR 4 million of non-recurring costs relating to digital acceleration. Net profit attributable to the group was EUR 71 million, down EUR 51 million year-on-year. The exceptional tax surcharge had an adverse impact of EUR 6 million over nine months, of which only one in Q3.
Our balance sheet remains a key strength on page 13. Net cash stood at EUR 382 million at end September. The EUR 133 million decrease since the beginning of the year mainly reflects the dividend paid by TF1 in April for EUR 132 million. Free cash flow amounted to EUR 108 million before changes in working cap and to EUR 16 million after changes in working cap.
To conclude on this slide, our solid financial position gives us flexibility and resilience to navigate this difficult environment, and most importantly, the ability to keep rolling out our digital transformation. Let me wrap up with our outlook on page 15. In the media segment, TF1 will continue to offer the best of free, family-oriented, and serialized entertainment.
The fourth quarter will notably feature top-performing unscripted programs such as "Star Academy," which generates strong digital consumption, particularly among younger audience, and "Miss France."
A strong slate of premium drama with a Season 2 of "Cat's Eyes" alongside new productions including "La Comtesse de Monte-Cristo," and an attractive sports lineup with the matches of the French national football team, now led by Zidane, and the France team's fixture with the Rugby Nations Championship. On digital, our priority remains the ramp-up of our three recent initiatives.
First, the Netflix partnership, live since late June with performance ahead of our expectations. It will continue to gain momentum in the fourth quarter. Second, the mid-tail offer through TF1 Ad Manager launched in Q2, supported by the partnership signed in recent months. Third, the ongoing deployment of micropayments across operator set-top boxes, currently available on SFR, Bouygues Telecom, and Free.
At Studio TF1, activity will remain weighted towards year-end, as in previous years, notably due to Studio TF1 America's delivery schedule. In addition, our film distribution division will release three films in the fourth quarter, "Moulin," selected for the official competition at the Cannes Film Festival, "Camembert," and "L'envol." Turning to slide 16.
In a context where visibility remains limited and with the linear advertising market still under strong pressure, we confirm our 2026 targets. Strong double-digit revenue growth in digital in 2026.
Maintain a mid-to high single-digit margin from activities before capital gains in 2026, subject to the evolution of the linear market, and aim for growing dividend policy in the coming years. Despite this complex environment, the TF1 group will continue the transition of its model towards digital and will maintain its ambition to offer distinctive content in order to strengthen its leadership. Thank you for your attention. I am now ready to take your questions.
Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone with a question may press star and one at this time. As a reminder, if you wish to register for a question, please press star and one on your telephone.
We have received a question from Eric Ravary from CIC, a written question from the analyst. I can read them and answer. The first one is, what advertising trends seen in October? Our anticipation visibility for Q4, November and December. Any impact from the recent riots in France in advertiser spending? First sentiment on 2027.
Do you expect the presidential campaign to weigh significantly on the TV ad market? Several questions from Eric and we have others. Let me start with this one. We saw a slight improvement in October. But overall, the overall trend remains basically the same.
For the full year, back in May, IREP, the Institute Forecasting Advertising Market, was forecasting -6% for the total advertising market in 2026, including the positive impact of the FIFA World Cup on M6. Since then, the market has deteriorated further.
This estimate now seems slightly optimistic, notably given the continued pressure on linear. Based on that, you can derive probably the Q4 trends. We still expect strong double-digit revenue growth in digital in 2026, with a ramp-up of our initiatives over the year.
For 2027, at this stage, we see no near-term prospects for improvement in the macroeconomic and political environment, nor any reduction in the regulatory asymmetries vis-a-vis global platforms. In this context, we maintain the momentum to shift our model towards digital and reaffirm our ambition to offer distinctive content to strengthen our leadership.
Regarding the presidential election, it is probably what we say every five years. The presidential election will lead to an increase in news programming, replacing more expensive prime time shows, but potentially resulting in less advertising inventory. That is the most probable effect that you can expect. Second question from Eric Ravary.
For TF1+, is the contribution from Netflix accelerating from the start in June? Any significant acceleration for TF1+ revenue expected in Q4 versus Q3? Let me answer this way. The contribution from Netflix partnership will increase in Q4 2026 and in 2027. Revenue is ramping up more gradually than the audience for two reasons at this stage.
Advertisers wanted to see before buying, given the audience numbers we have communicated, I think the concept has now proved successful. At this stage, for technical reasons, ad load and CPMs on Netflix were slightly below TF1+ levels, but the gap will be closed progressively. Another question from Eric Ravary, CIC.
Programming costs. Any plans to make further cost savings in Q4 in the current difficult environment? Can you give us a range for the programming cost for full year 2026? Our priority is to deliver the guidance.
We don't usually communicate any guidance on our programming cost, but the priority remains the guidance on the margin and in a tough market. We have confirmed the guidance, and we are confident to achieve it. Studio TF1, another question. Update on phasing on revenue over the year, revenues growth expected in Q4 year-on-year, same on COPA.
Studio TF1 returned to growth in Q3, and we think you can expect a similar trend in Q4. In terms of margin profile, Q4 2025 was probably a good benchmark. That's it from CIC. Thank you, and let me summarize this way.
In the linear advertising market that remains under strong pressure, the third quarter confirmed the relevance of our choices. Our leadership strengthened as soon as the World Cup ended. TF1+ growth accelerated with the Netflix partnership and Studio TF1 returned to growth as anticipated.
With profitability in line with our 2026 roadmap and with our solid balance sheet, we confirm our targets for the year. Thank you very much.
Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.