ODDO upgrades TF1, sees higher ad revenues, tight cost control

Television Francaise 1 SA

23/01/2024 10:16

* ODDO BHF upgrades TF1 < TFFP.PA  to "outperform" from
"neutral", as it raises its expectations for the French private
broadcaster's advertising revenues, while noting tight cost
control 
    ** The broker now expects the group's ad revenue growth of
1.9% between 2024 and 2026 (vs. 0% previously) owing to new
streaming platform TF1+'s offering
    ** It adds the new platform should generate its own audience
independently, instead of catch-up viewing, and drive growth in
revenues of 2.6x in this segment by 2026, ODDO says
    ** The broker also expects TF1's TV production unit Newen
Studios to improve in 2024 after a particularly challenging
2023, with an estimated growth of 15%, driven by the revival of
iconic French TV serie 'Plus belle la vie'
    ** Moreover, ODDO expects TF1 to generate prospective growth
while keeping a firm hand on costs, and sees operating margin in
the media business to grow to 15.8% in 2025 vs 13.3% in 2023 
    **  Out of 8 analysts that cover TF1, five rate the stock
"strong buy" or "buy,"​ and three rate "hold" 

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))