TV Revenues Fall Across Europe

23 February 2009

PARIS: Television Francaise 1, the French media group, saw total advertising revenues fall by 2.7% to €1.8 billion ($2.3bn; £1.6bn) in 2008 as marketers reined in their spending, a trend which was even more profound in Spain, where the broadcaster Antena 3 posted an adspend decline of 17.4% to €690.6m.

Television adspend is predicted to fall by 2–3% in the Eurozone-12 in 2009, and the French government is also phasing out advertising from the country's public service TV channels.

Private broadcaster Television Francaise saw net profits fell to €164m from €228m in 2007, with total revenues decreasing from €2.7bn to €2.6bn as a result of the advertising slump, and a decline in revenue of 9% is also predicted for this year.

Its core channel, TF1, saw total ad revenues fall by 4% to €1.6bn for the whole of 2008, including a 6.1% slump in the fourth quarter, and its parent company said the climate remained "bad" at the start of 2009.

Antena 3, which is Spain's second-largest commercial broadcast network, saw its total revenues decline by 18% to €767.5m, and profits decrease to €91m from 200m a year earlier.

The company said its audience share and ad revenues were hit by the Spanish economic downturn, and said that the country's advertising market as a whole shrunk by 11% in 2008.

TVN, which is Poland's biggest commercial broadcaster, also saw its profits fall by 35.5% in the final quarter of 2008 to 85.6 million zlotys, but its ad revenues grew by 10.8% to 466.7m zloty ($124m).

However, media company Agora has predicted the Polish ad market will decline in size by 2% this year.

Data sourced from Wall Street Journal/Reuters; additional content