Phiadvisor's Enter Long Signal on TF1(TFI-FR)
TF1 is a €1.43 Bn market cap and is the leading general television channel in France. Group revenues are mainly derived from operation of TV channels (76%) including 5 owned unencrypted channels (TF1, TMC, TFX, TF1 Series Films and LCI) and 4 thematic channels (TV Breizh, Histoire, Ushuaïa and Sérieclub). The group is also active in advertising, film and audiovisual co-production;
The other activités represent 24% of revenues and includes production and sale of audio-visual rights, co-production of entertainment and gameshows (TF1 Entreprises), broadcasting of internet services (e-TF1), teleshopping activity (Teleshopping), publishing of games and magazines, broadcasting of news. Revenues are mainly achieved in France (96% of sales).
TF1 aims to present a more balanced portfolio by diversifying the model with conctent production and digital.
After a -15% impact on revenues in 2020 and -30% in EPS, TF1 is expected to resume growth in 2021 and reach again the 2019 profit level in 2022.
Short term catalyst: Cyclical recovery, portfolio improvement.
This signal looks consistent with the Major Bullish Trend in the European Media sector.