Soccer nicks TF1’s profits

Operating profit at web fell 16.4%

Expenditure on World Cup soccer rights dented TF1’s finances in the first half of 2006, with profits falling 2.9% to e171.5 million ($219.5 million) on revenues up 7% to $1.8 billion, the company announced Tuesday.

Operating profit at France’s leading commercial web fell 16.4% to $267.2 million.

TF1 attributed most of the decrease — $115.2 million out of $143.3 million — to the sports event, which drew record viewing figures.

Ad revenues for the period rose 4.8% to $1.2 billion.

Non-core businesses saw 13.7% growth in revenues to $592 million.

TF1 predicted a 3.5%-4% increase in advertising revenues for the full year, in line with forecasts for the overall French TV ad market, while non-core businesses should replicate their first-half performance.

Smaller rival web M6, which also held some World Cup soccer rights, posted a profit of $128.6 million for the first half, on revenues of $849.6 million. Ad revs repped $449.8 million.

The $34.5 million the channel spent on soccer rights, which drove up programming costs by 27.6% to some $207.8 million, cut into operating profit, down 7.9% to $155.9 million.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety

Loading