Television Francaise 1 Stock

Good evening, everyone, and thank you for joining us for our H1 results presentation. I'm Rodolphe Belmer, CEO of the group. And along with Mr. Pierre-Alain Gerard, we will walk you through the group's performance for the first half of 2026 before we answer your questions.

Let's start with the key highlights on Page #3. In H1 2026, the group maintained its clear leadership in linear, both in terms of audience and in terms of advertising market share despite a particularly competitive environment, notably with the Winter Olympics in Q1 and the Football World Cup in Q2. Second, our H1 results are in line with our full year targets for digital growth and profitability against a difficult advertising and a regulatory backdrop. Third, the level of COPA, which stood at EUR 77 million in H1, is above expectations and validates the choices we have made to safeguard profitability, notably regarding the Football World Cup. Lastly, the group maintained a solid financial position, which gives us flexibility to keep executing on our strategy. In an environment that remains volatile and offers limited visibility, we maintain our 2026 targets.

Let's go now into more details into business review, starting with our Media and Studio segments, starting with Media on Page 6 of the document. In H1, the group maintained its linear leadership across commercial targets. And the TF1 channel, our flagship channel kept its significant lead over its main competitor. As I said, this performance is particularly noteworthy given the very competitive environment in H1, including events such as the Football World Cup and the Winter Olympics. This reflects the strength of TF1 editorial offer across all major genres like entertainment with des Enfoirés, sports with the Six Nations tournaments and premium drama with L’Été 36.

News also continued to perform strongly. The 1:00 p.m. and 8:00 p.m. bulletins maintained a significant gap versus the main competitor. LCI, our news channel, posted a record audience share in H1 and its best ever month in March at 3.2% share of the 4%-plus target. And Bonjour! is now firmly established as France's second morning show. Overall, the group once again demonstrated the resilience and appeal of its premium content offering.

Moving to streaming now, Page 7. TF1+ continued to show strong momentum, a bit more than 2 years only after its inception. Platform attracted 42 million streamers per month on average in H1, up 20% year-on-year and reached a new monthly record of 44 million in June. The platform audience also benefited from the launch of our landmark distribution agreement with Netflix in late June. Early performance has been well ahead of expectations. On June 25, we recorded a new daily record of 8.3 million streamers on TF1+, driven by the Koh-Lanta final and the launch of Secret Story, which ranked among Netflix' Top 10 title.

Overall, 573 million hours were streamed in the first half, up almost 7% year-on-year on a site-centric basis. Advertising pressure reached 5 minutes and 47 seconds per hour on average, up also 7% versus H1 2025 and close to our midterm target of 6 minutes. From a monetization standpoint, CPM stood at EUR 12.5. The platform's attractiveness to both streamers and advertisers translated into a growth of TF1+ advertising revenues of almost 20% year-on-year, reaching EUR 109 million. The group overall digital revenue, which also includes advertising revenues from TF1 Info and addressable TV, along with revenues from subscriptions of our TF1+ premium offer service and micro payments amounted to EUR 134 million, up 17% year-on-year.

Micro payments continued to gain traction with more than 800,000 transactions recorded since the beginning of the year. The ramp-up is still constrained by the rollout of the offer across telecom operators as it has only been deployed at this stage on SFR eligible set-top box and more recently, very, very recently on Bouygues Telecom ones.

Studio TF1 now, Page 8. Revenue amounted to EUR 124 million in the first half, slightly down year-on-year. As expected, activity this year is mainly weighted towards H2. Studio TF1 continued deliveries to its long-standing partners in France with content like A Priori for France Televisions. It also pursued its international collaborations, including The Teacher for Channel 5, while continuing to diversify its client mix with the streaming platforms with programs such as Day One for Prime Video. The first half was also marked by the successful theatrical release of Pour le Plaisir, Good Vibes Only in English, the first film distributed in cinemas by Studio TF1 in France with more than 700,000 admissions.

Now I will hand over to Mr. Pierre-Alain Gerard.

Thank you, Rodolphe. Let's now turn to financials in more details. First, revenue on Page 10. Group revenue amounted to EUR 993 million in the first half of 2026, down 6% like-for-like and at constant FX, ahead of market expectations. In the Media segment, advertising revenue was EUR 714 million, down 9%. The evolution reflects the structural decline of the linear advertising market, exacerbated by advertisers' cautious stance in an unstable environment and by the exceptional competitive environment in June related to the Football World Cup. In this context, the group managed to maintain its leadership with a market share close to last year's level, demonstrating the relevance of its commercial offering. The launch of TF1 Prime notably helped us extract greater value from our premium prime time inventory, highlighting its unrivaled standing among advertisers.

Regarding streaming, as mentioned by Rodolphe, TF1+ advertising revenue rose by almost 20% to EUR 109 million in the first half, and the overall digital revenue amounted to EUR 134 million. Non-advertising media revenue was EUR 156 million, down 19% on a reported basis, but slightly up, excluding scope effects related to the disposal completed last year, mainly My Little Paris and Play Two. At Studio TF1, revenue amounted to EUR 124 million, close to the level of last year. International activity was boosted by distribution deals, while France benefited from deliveries to Netflix in H1 2025.

Turning now to profitability on Page 11. Our current operating profit from activities amounted to EUR 77 million in the first half with a margin from activities of 7.8%. This level is above market expectations and in line with our annual guidance. In Media, COPA stood at EUR 81 million. The EUR 44 million decrease year-on-year mainly reflects the decline in high-margin linear advertising revenue. Programming costs totaled EUR 433 million, down EUR 19 million year-on-year. As a reminder, we chose to maintain premium programming in the first quarter to support the launch of the new TF1 Prime/TF1 Reach ad segmentation. In the second quarter, we demonstrated agility on cost in a weak market and in a very competitive environment. This allowed us to limit the impact of the linear decline. As a result, the Media margin reached 14.3% in Q2 and 9.3% over the first half.

At Studio TF1, COPA amounted to minus EUR 4 million. The EUR 10 million decline compared to last year mainly reflects base effects comprising a deal on music assets completed by JPG in Q1 2025, deliveries to Netflix in H1 2025 and a delivery schedule of high-margin TV movies more weighted towards the second half of the year. Overall, first half profitability confirms the group's disciplined execution in a challenging environment.

Let me now move to the income statement. I have already commented on revenue and COPA. Operating profit stood at EUR 70 million. No particular one-offs to highlight beyond the amortization of the PPA related to JPG and nonrecurring costs related to digital acceleration. Net profit attributable to the group, excluding exceptional tax surcharge, came in at EUR 56 million, down EUR 37 million year-on-year. The impact of the 2026 finance bill amounted to EUR 5 million in the first half, including EUR 3 million already recognized in Q1. Net profit attributable to the group, including exceptional tax surcharge was EUR 51 million.

On Page 13, our balance sheet remains a key strength to navigate an unstable environment while accelerating our digital transformation. Net cash reached EUR 432 million at end June. The evolution mostly reflects the dividend payment by TF1 of EUR 132 million in April and free cash flow after working cap of EUR 57 million in H1. A brief technical note to ease comparison with last year. The group has changed its assessment regarding French drama coproduction with the development of streaming and notably the acceleration of our OTT distribution strategy, as illustrated by our partnership with Netflix, the broadcast rights now carry greater economic value to the coproduction share.

As a result, a larger portion of drama acquisition cost is now recognized as inventory rather than capitalized as intangible assets, mechanically reducing both CapEx and the corresponding amortization charges by approximately EUR 40 million in H1. The symmetrical inventory increase unwinds as content is broadcast and consumed, which is precisely what happened in H1, explaining why the reclassification has no impact on working cap. And of course, as this is purely accounting, this change of estimates has no impact on free cash flow after working cap.

And now back to Rodolphe.

Well, thank you, Pierre-Alain. Let me conclude with our outlook. In the Media segment, TF1 will continue to offer the best of free family-oriented and serialised entertainment. Key highlights will include iconic franchises such as Koh-Lanta and Star Academy, which performed particularly well in digital and among younger audiences. The group will also benefit from a strong slate of premium drama, including Cat's Eyes Season 2, La Cible and La Comtesse de Monte Cristo. In sports, the second half will feature a solid lineup, notably with the matches of the French national football team and the Nations Championship in rugby.

In digital, the three initiatives that we launched recently are expected to further contribute to our revenue acceleration in H2. First, with the distribution partnership with Netflix, which is live since late June and delivering early performance well ahead expectations. Second, the deployment of our Mid-tail solution through our TF1 Ad Manager platform. We have recently strengthened our local commercial footprint with partnerships -- with partners like Cityz Media in June to commercialize locally our local inventories. This agreement gives local advertisers access to TF1+ and addressable TV solutions through combined offers, thus supporting revenue growth with SMEs and retail networks.

Third, the continued ramp-up of micro payments supported by the rollout of the offer across operators' set-top boxes. For Studio TF1, activity will again be weighted towards H2, notably due to Studio TF1 Americas delivery schedule. The theatrical film distribution division in France has four additional releases planned in the second half, notably the Jean Moulin biopic, starring Gilles Lellouche, which was part of the competition lineup of the Cannes Film Festival.

Turning to Slide #16. In a context where visibility remains limited and with the linear advertising market still under strong pressure in France, 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, aim for a growing dividend policy in the coming years. We will remain disciplined on cost, focused on digital acceleration, and we capitalize on our solid balance sheet to navigate this complex environment.

That's all for this introductory presentation. And we are now with Pierre-Alain, ready to take your questions.

[Operator Instructions] The first question comes from Christophe Cherblanc with Bernstein.

I had quite a few, so I'll keep it to three. The first one is on the dividend. You're committing to a progressive dividend policy. Without giving precise numbers, what is the level of margin you need to reach to fully cover the dividend in '26? That would be the first question. And related to that, if that was not the case, are you happy to pay out more than 100% of profit?

The second question is on the consolidation of the market. We've seen in Germany and in the U.K. a convergence between pay TV players and free-to-air broadcasters. Do you think that's something that could make sense in the French market? Or do you see specific features in the French market, which are such that it doesn't make sense?

And the last one is just on the Studio. You mentioned the decline in H1. Is it fair to expect that on a full year basis, the COPA of Studio will be back to the level we saw in '25 with a double-digit margin?

Well, thank you, Christophe, for the set of questions. Maybe I'll leave the question on dividend to Pierre-Alain. On market consolidation, well, maybe a status on this topic. As you said, well, we've seen a wave of consolidation between pay and free broadcasters in Europe. We have looked at that quite in detail and analyzed those transactions, those evolutions. What we think and when we try to analyze what would be the level of synergy, we estimate that the level of synergy that we would have in France in such a scheme will be quite low and not totally certain that it would create value for our shareholders given the very small overlap between our lineup of content and the lineup of content of the pay TV players in France, which are very, very distinct and different in our business. The core of our cost base lies in the content cost, of course. Studio, well, the lower performance in H1 is mostly due to phasing effects, and we expect to return to a nominal trajectory in H2.

Yes. And regarding dividend, you're right. We don't have a policy in terms of payout. And as you said, we were aiming. It's an objective, but it has to be reassessed each year. You have noticed and you are not the only one that we have a stronger net cash position, and we are capitalizing on that when we say that we aim to increase the dividend.

So to be clear, you would not exclude to pay more than 100% of profit into dividend because you've got such a high net cash position? Or is it a no, no?

It will be reassessed depending on the market, on the outlook, et cetera. It's not something that will be automatic.

But what we can say is that we don't have specific principles and we don't have specific cap regarding our net results. I think that for the moment, what we said is that we reiterate, we confirm our guidance in terms of profitability, and we also confirm our guidance in terms of dividend policy. Of course, it has to be reassessed each year by the Board of Directors of TF1, but the policy is constant. And we estimate that we will cover our dividend policy with the profitability of the group in the immediate future, and we don't have cap in case it wouldn't be the case, it were not the case.

The next question comes from Eric Ravary with CIC CIB.

I have three questions. First one is on the advertising outlook. I know that you don't have precise visibility on September at this time of the year. But the question is more on your sentiment on the advertising trend for the last 4 months of the year, and any change in the mood of the advertisers? And also the basis effect, we know that the Q4 2025 was weak, so it should offer a positive basis effect. So could you give some comments on these prospects?

Second one is on your programming cost cutting in Q2. Was this just in June to make some tactical savings versus the World Cup? Or was it more broad-based in over Q2? And so could you consider further significant programming savings in H2 beyond the World Cup in July?

And last question is on the -- well the announcement of two contracts that were terminated, one with CANAL+ on the distribution of your small pay TV channels and the second one with the independent radio networks on advertising sales. Could you please quantify the impact both on revenues and EBIT of this end of contracts?

Well, on the advertising outlook, well, as you know, it's very difficult to give a firm outlook for our market, which is -- which tends to be increasingly marked by low level of visibility and forecastability. I don't know if it's pure English, but well you understand the notion. Still, when we look at the estimates provided by consulting firms specialized in our sector, which tends to converge towards a market that should evolve in the linear segment around minus 10% for the full year. And in total, if we include digital, minus 6% for the total market. We think that this view is fair, and we more or less share that perspective.

And well for TF1, we're very big. We represent almost 50% of that market, the television advertising market, meaning that we more or less with some nuances, evolve like or in the same kind of trending line. And for the moment, there is no real improvement in the trend of the market that we can see around the corner in France.

Programming cost, we have adjusted -- well, first, our strategy, our intention, our objective is to be able to continue to finance a superior lineup of content over time because that's the bedrock of our superiority and of our leadership on our markets, meaning that our view is to be able to -- is to strive to fight for the sustainability, the perennity of our programming cost. Of course, we have to adjust that principle to the reality and to the evolution of the market and to the evolution of the demand of our customer. We have adjusted slightly our programming cost in Q2 to adjust to a very low level of demand, mostly because of the World Cup broadcast by our competitor.

And of course, we will adjust in the same way tactically in the second half if the market turns to be less solid than what we expect. But for the moment, we don't have plan of that kind, but we want to preserve the agility that's needed to protect our profitability in case the market turns out to be less positive than what we expect.

Well, contract with CANAL+, it's a small contract. Low single-digit in terms of millions of euros annually. And the independent -- the concession contract that we had for the advertising of the independent radio stations in France, again, in terms of impact at the COPA level, it's a mid-single-digit level, million euros annually. Meaning not -- well, not good news, of course, but it's a bit insignificant at the group level.

[Operator Instructions] There are no more questions from the phone call. So we have a question from the web from Alexandra Depré. What is the reason behind the LFL decline in non-advertising revenue in Media?

Well, maybe I'll let Pierre-Alain who has already started touching upon this question in his presentation, answer in more details to your question, Alexandra.

Maybe I wasn't completely clear, but if you remove the perimeter impact from the sale of My Little Paris and Play Two, the revenue from non-advertising media segment is up -- slightly up. It's not a decrease.

Mostly perimeter effect. We divested last year. You remember that two small noncore companies that we had last year, one called My Little Paris. And the other one, it was Play Two in the Music Publishing business.

And if you do the math between the minus 6% and then minus 10% reported, you find that it's around EUR 40 million perimeter effect.

We have a follow-up question from the phone call, Mr. Christophe Cherblanc with Bernstein.

I just wanted to follow up on a smaller issue, which is the digital ad revenues. Is it fair to assume that the Netflix collaboration, you mentioned that the audience traffic was above expectation. Is it fair to assume it did not generate any significant revenues in Q2 and that we might see benefit more in Q3 and Q4?

Yes. Well, we launched only on June 18 with the ramp-up as usual of the service across Netflix subscriber base, which took a few days. Meaning that, well, in the second half, we had literally only -- well, a dozen days of service of TF1+ on Netflix, meaning that we couldn't perceive any revenue impact in H2. We will see some revenue impact in H2. And we think based on the early results that we can already experience with Netflix that well, it will help accelerate the revenue growth of TF1+ and bring it back to a very solid double-digit growth in terms of revenues. In H1 without Netflix, we enjoyed revenue growth. We delivered a revenue growth of 19%. And you should expect that number to significantly increase on the back of our distribution deal with Netflix, which is very successful and also on the back of the early days of our mid-tail development over H2.

You don't have a fifth one, Christophe?

I had just one on the World Cup. Just what is -- I'm not sure you're going to give precise number, what is your estimate of the money that went to the World Cup event? And do you feel that, that distorted the market in some way at the end of Q2 and in July? I think in the release, you mentioned you lost 1 point of market share in H1. So is that just the World Cup? Or is there any non-World Cup impact?

What we tried to convey in our press release is that, despite the impact of World Cup, we were able to overall maintain our market share of the advertising market since we lost only 0.7 percentage points, which is from a basis of 47%. It's a very low impact that we had despite the importance of the events. That's what we meant.

Okay. So that's about EUR 50 million of extra revenues for M6 above and beyond what they would have done without the World Cup, right?

Well, I don't know how you do your math, but well, probably you should use your Excel table. Because if you do 1.4%, okay, well, we have 50% market share. We lost 0.7%, meaning that well, our competitor might have at the best, 1.5% market share overall over the first half on the market in the first half, which was of EUR 1.2 billion in total.

It's slightly above that according to estimates.

Yes, but EUR 1.4 billion was a bit -- if you do the math, it's a factor less than EUR 50 million, it's EUR 15 million, not EUR 50 million. Well, it's not an estimate that I make, I'm just doing some math with you because it's funny.

Okay. So we'll see what they say on their call.

There are always many ways to present that -- well, the revenues driven by a sports event of that kind. But what's important at the end of the day is what incremental market share you generate or you lose on the advertising market. And this increment, how does it compare with the cost -- the incremental cost of this event compared to your usual lineup of content. That's how you should assess the profitability of such events. Because otherwise, it's very difficult to analyze. But well, assessing the incremental market share over the year for instance, and assessing the incremental cost and comparing the two elements, that's the good way to assess the real profitability of this kind of spendings.

The next question is a follow-up from Eric Ravary with CIC CIB.

I have a follow-up question, I guess, for Pierre-Alain, is on the working cap requirement. I remember that at the beginning of the year, you mentioned that the working cap would weigh on free cash flow this year with some exceptional payments in TV rights and the impact of your new TV advertising offering. So on H1, I see that, well, working cap is neutral. So could you make an update on this point, please?

No, it's true. I said that at the beginning of the year, and it's still true. But usually, you find that working cap is -- working capital requirement is rather positive on the first half of the year and rather negative during the summer and most part of Q4. So it's not very surprising.

Okay. So you maintain the...

Yes.

There are no more questions registered at this time. Mr. Belmer, back to you for any closing remarks.

Well, thank you. And I have a very short closing remark in the form of a summary in an environment that remains very volatile and offers limited visibility. Our leadership position, our digital momentum and our strong balance sheet provide a solid foundation for the rest of the year. Our priorities remain clear and unchanged, and we confirm our 2026 targets.

Thank you very much for attending today's presentation, which was quite late just before the weekend. Well, thank you for taking the time and see you in a few months.

Thank you very much.

Thank you. Good evening, everyone, and thank you for joining us for our Q1 2026 result presentation. I will walk you through the quarter's performance before we open the floor for questions.

Let's start with our key highlights. First, in terms of audience performance, the group maintained its leadership in all key targets and further improved its share among 4+ and women below 50 despite a highly competitive environment, notably with the Winter Olympics. The TF1 channel claimed 25 of the 30 best viewing figures in its 25 to 49 commercial target. The group's news offering, which plays a key role in the democratic debate, further strengthened its position amid heightened international news flows, leading to a record for LCI in March. TF1+ recorded 41 million monthly streamers on average in Q1, a significant increase compared with the 35 million monthly streamers in Q1 2025.

Second, financial performance. Revenue amounted to EUR 472 million, down 5% like-for-like and at constant exchange rates, reflecting the decline of the linear advertising market that we partially mitigated with market share gains. On the digital side, we maintained a strong growth momentum. TF1+ advertising revenue grew by 22% to EUR 49 million and total digital revenue rose by 18% to EUR 60 million. COPA stood at EUR 13 million. As anticipated, profitability was impacted this quarter by the decline in linear advertising revenue as we have maintained our programming costs flat.

Finally, our financial position remains very solid with a net cash of EUR 565 million at end-March, slightly up year-on-year and up EUR 51 million since the beginning of the year. In terms of outlook, in an advertising market that still offers limited visibility, we maintain our 2026 targets.

Let's go now into more details. We'll first give you a quick update on our business segments. We will then provide additional information on our financial results before moving to outlook. We will close with a Q&A session.

Let's start with a quick business review of our Media and Studio segments. I'm on Page 6. In Q1, the group maintained its leadership across commercial targets and the TF1 channel its significant lead over its main competitor. This performance is particularly noteworthy given a very competitive programming environment, including events such as the Winter Olympics. TF1 delivered strong ratings across all genres, notably sports with a broadcast of 9 Six Nations matches, which gathered up to 7 million viewers for the Wales versus France game. News also performed strongly. LCI reached in March a record high audience with 3.2% audience share in the 4+ target. And the extension of our morning show Bonjour allowed us to double our audience share in that time slot at limited cost.

Moving to digital. TF1+ keeps showing strong momentum 2 years after its launch with 41 million monthly streamers in Q1, up 17% year-on-year and 285 million streamed hours, up 9% year-on-year based on site-centric figures. These growing consumption figures, along with increasing ad loads enabled TF1+ advertising revenue to grow by 22% to EUR 49 million. As a reminder, we have also been disclosing a new KPI since our full year results, namely the digital revenue, which encompasses the various levers activated by TF1 Group to boost advertising and non-advertising revenue.

In addition to TF1+, it includes advertising revenue from TF1info and addressable TV, along with revenue from subscription, TF1+ Premium and micropayments. It amounted to EUR 60 million, up 18% year-on-year. A word on micropayments, which continued to gain traction in Q1. On the TF1+ app, an environment where this offer is fully deployed, converted users have made close to 4 transactions per month in average in Q1, versus 3 in 2025, highlighting the appetite for this feature.

The key challenge now is to accelerate the adoption and revenue generation of the offer through a gradual rollout across telecom operator set-top boxes. For instance, when a seamless payment process is implemented on telco eligible boxes, user adoption accelerates significantly. That's what we saw in March with SFR, resulting in a 50% increase in transaction compared to February in this environment. It's a good example.

Now turning to Slide 7. Studio TF1's revenue was broadly stable year-on-year at EUR 58 million, down EUR 2 million. In line with its strategic road map, Studio TF1 continued deliveries to its long-standing partners in France, new episodes of A Priori for France Television, while pursuing its international collaboration, Hunting Alice Bell for Channel 4 or the third season of Teachers for Channel 5, both in the U.K. and particularly its partnership with streaming platforms to diversify its client mix, for example, Day One for Amazon. Studio TF1 COPA was minus EUR 3 million in Q1 2026, close to last year's level. And as you know, with results skewed towards the end of the year.

Let's now turn to financials in more details. On Page 9. Group revenue amounted to EUR 472 million, down 9% on reporting figures and down 5% like-for-like, broadly in line with consensus, contrary to what some automatic press release are writing. In media, advertising revenue declined by 7% year-on-year, right on the consensus. This reflects the structural decline of the linear market, exacerbated by advertisers' cautious stance in a particularly unstable, though slightly improving environment since Q4 2025. That said, we gained market share in linear advertising, demonstrating the strength and relevance of our commercial offering.

The launch of TF1 Prime notably helped us extract greater value from our premium prime time inventory, highlighting its unrivaled standing among advertisers. The change in non-advertising media revenue was entirely driven by scope effects resulting from the disposals completed in 2025, mainly My Little Paris and Play Two. As mentioned earlier, revenue at Studio TF1 was broadly stable.

Now turning to profitability. COPA amounted to EUR 13 million, in line with the consensus and in line with what we anticipated at this point of the year. This decrease is primarily driven by the decline in high-margin linear advertising revenue. Programming costs were broadly stable at EUR 222 million. They reflect the group's effort to maintain premium programming in order to support the launch of the new segmentation of the advertising offering, notably with the broadcast of the Six Nations matches, sorry. This is something that we announced during our full year call.

Studio TF1 generated COPA of minus EUR 3 million, close to last year's level. Regarding the income statement on Page 11, I have already commented on consolidated revenue and COPA. Operating profit stood at EUR 9 million. No particular one-offs to highlight beyond the amortization of the PPA relating to JPG and nonrecurring costs related to digital acceleration. Net profit attributable to the group, excluding exceptional tax surcharge, was EUR 7 million.

France 2026 finance bill had an adverse impact of EUR 3 million in Q1. Our balance sheet remains a key strength. Net cash reached EUR 565 million at end March, up EUR 6 million year-on-year, up EUR 51 million year-to-date. Free cash flow after working cap amounted to EUR 54 million compared to EUR 50 million last year. This solid financial position gives us flexibility and resilience to navigate an unstable environment while accelerating our digital transformation.

Let me conclude with our outlook. On Page 14. In the Media segment, TF1 will continue to offer the best of free, family-oriented and serialized entertainment. The iconic franchises like Koh-Lanta, The Voice, Mask Singer, which have large digital audiences and a strong appeal towards young targets will be among the highlights of the second quarter of 2026, along with dramas, including the new event mini series, L’Été 36. On digital, 3 key initiatives will foster growth. The upcoming launch of the Netflix distribution agreement by end June, aiming at maximizing our reach and ad revenue. The ramp-up of micropayments, notably through their rollout on telco set-top boxes, including integrated billing solutions.

And last, the deployment of the SME-focused mid-tail journey through TF1 Ad Manager, which started mid-April. This will enable small and medium enterprises as well as business commercial retail networks to buy and easily create geo-targeted ad spaces starting with low pricing points from EUR 1,000, therefore, making TV accessible to all and notably smaller customers. This initiative will be driven by a small dedicated team, therefore, limiting the impact on the group's fixed cost base and will rely on an outsourced sales team providing nationwide coverage.

For Studio TF1, activity will remain weighted towards the second half. Highlights for the rest of the year include the first releases from the new theatrical distribution division, including the Jean Moulin biopic starring Gilles Lellouche, which has been added to the competition lineup of the Cannes Film Festival.

Now turning to Slide 15. In a context of limited visibility, our 2026 targets are confirmed. 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, aim for a growing dividend policy in the coming years. We remain disciplined on cost, focused on digital acceleration and capitalize on our solid balance sheet to navigate this complex environment.

Thank you for your attention. I'm now ready to take your questions.

[Operator Instructions]

The first question is from Conor O'Shea with Kepler Cheuvreux.

First question, on the second quarter, the early look in April and so on in terms of advertising market. Is that -- has that got worse than you were thinking around at the full year results? If you can give us a little bit of color on that. Secondly, in the first quarter, in contrast to your direct listed broadcasting peer, you didn't make any tactical programming cost savings and we're willing to sacrifice margins. If the underlying ad market is worse, could you change that strategy over the next couple of quarters? And then the third question, just in terms of the digital revenues and micropayments, the non-advertising digital revenues, I think I'm right in saying that they were flat year-on-year at EUR 11 million. Obviously, the micropayments should be growing. So can you just maybe explain why the overall digital non-advertising is not -- revenues are not growing -- did not grow in Q1?

Thank you, Conor. So first question, in Q2, I'm sure you have at least followed the AGM of our listed peer, as you call them. And they gave indications regarding April and May, saying that they were broadly in the continuation of the Q1, which is also what we see. No tactical programming costs, you're completely right. This is something I think during the call session for the fiscal year results the full year results, we said that we wanted to support our new segmentation, and this is how we wanted to support it with a broadly flat programming cost year-on-year. So this was part of the strategy. Should things evolve, we would stay pragmatic regarding programming costs.

On the non-advertising revenue, you're completely right. The evolution is completely due to perimeter effects. On micropayments, what you have to bear in mind is that we are dependent on the telecom operator to roll out the bidding processes so that they are completely seamless. And when it's the case, -- we have validated that there is a strong demand. Now when the billing process is not painful, there is a surge in transaction. This is what we highlighted with SFR with a 50% increase from 1 month to another. So there are different generation of boxes among the installed base of telecom operators. But this is something that we are working on with them for the coming months.

Okay. Does that mean that excluding the perimeter effects that the underlying revenue is growing, let's say, by a couple of million year-on-year every quarter? -- off a base of eleven.

Yes, a couple of million, yes.

Okay. And so when -- and just a reminder, when does that perimeter effect overlap?

We should... until the end of the summer.

The next question comes from Christophe Cherblanc with Bernstein.

I had 3 questions. Just to follow up on what Conor was asking about programming costs. Do you mean that even during the World Cup, you're not going to hold back on spending? So should we expect kind of flattish programming spend for Q2, Q3, Q4? And what do you expect will be the market impact of the World Cup, i.e., do you expect your share to go down significantly in June and beginning of July? Or any color on that would be super helpful.

The second question is on capital gains. In the last 2 years, you were pretty agile in generating capital gain. Do you see a window to repeat those gains in '26? And the last one is on the SME project, the long-tail of small SMEs. Could you give us a sense of what you believe is a realistic long-term potential? Are we talking a few millions, a few tens of millions that would be helpful. I'm not looking for guidance, but just the sizing of the opportunity.

Okay. Thank you, Christophe. So regarding programming costs during the World Cup, you might have noticed that the hours of the World Cup are not necessarily in prime time. So we have strong programs to broadcast during the World Cup as well to benefit from the slots of the [virus] match either before prime time or after prime time. And then in Q3, we have the Rugby Nations Championships as well in terms of sports events. But regarding the programming that we have during the World Cup, we are benefiting from the slots based on the jet lag between the U.S. and us.

Under the share during the World Cup, of course, in terms of audience, there will be an impact. This is -- we have been -- we know the dates of the World Cup for quite a while now. So even during the first -- the full year call, we had modeled the potential impact in terms of audience share and also in terms of advertising share. But everything we said during the full year call is still valid today. Nothing has changed in terms of how we modeled the year.

On your question regarding capital gains, yes, we try to remain agile, but there were opportunities. The way we did it and the way we approach it, we are very pragmatic. Before, there remained in the portfolio activities that were no longer in synergy with the rest of the group and where we thought that we could create value with transaction multiples higher than what we were witnessing on the market. So this is how we decided to do it in 2024 and 2025.

Your question is, are there new other opportunities to do it? Maybe fewer, I would say, but we try to remain as agile as possible and pragmatic. The idea is to create value. On the SME project, no guidance, of course. But I would say that the market is pretty sizable. It's between EUR 1.5 billion and EUR 2 billion. So a very sizable market. Only a couple of million would be very disappointing. We are looking for much higher numbers, a couple of dozens maybe.

Okay. And how long do you believe it will take to ramp up the revenues because you need to get potential buyers used with the product, et cetera. So how long before we see it?

The preliminary test that we've run before the launch of the platform are extremely promising. The value of TF1 in the various region of France, the ability for a small business to see an add on TF1+ with a certain radius from the business, there is a strong demand for that. And we are capitalizing on the strong TF1 brand to do it, and we see that there is a very strong demand. Of course, it's about penetrating the business and the region in France. So it will -- there will be a ramp-up, but we think that it will take a couple of months, but probably around 2027, we will reach an interesting rhythm.

And just to finish on this point, I mean, we know that there are potentially more higher content payout on digital. You were mentioning you were outsourcing the sales force. So the drop through the operating leverage on that -- on those revenues would be lower than what you have on the core business, right?

Yes.

The next question comes from Julien Roch with Barclays.

We will talk on micropayments, can you tell us how many there was in Q1? And can you come back on the kind of path to get more? Because you said there was a different generation of box, some were more complicated than others. So what's the kind of footprint at the end of Q1? How many users were able to pay easily? And what's the total you can reach? So some more kind of colors on micropayments, please?

On micropayments, we reached several hundred thousand transactions during Q1, higher than what we had at the beginning of the -- when we launched it in late 2025. In terms of footprint, this is something that we don't disclose yet because you have to -- it's hard to define the denominator given the fact that we don't have necessarily all the -- a clear view on the various generation of boxes where we can implement a seamless billing process. We are working with the main, let's say, fixed players, Orange and Free to have that implemented as fast as possible.

And when you say several hundred thousand, I mean, it's somewhat vague. I mean are we talking 200,000 and 400,000 and 600,000...

More than 400,000.

Okay. And you don't have a visibility on -- and do you have a visibility on how many boxes today allow seamless paying or you don't know that yet?

We have that figure. I don't have that with me, but we can come back to you if you want on that one. What I can tell you is that, once again, a very good sign is that when it works seamlessly, we have like 4 transactions per user, which is above what we had in mind at the beginning. So the demand is there.

The next question is from Eric Ravary with CIC.

Two questions from my side. First one on Studio TF1. I see that the revenues in France were down 40% in Q1. So I imagine that it's a phasing issue. But could you give a comment on the prospect for Studio TF1 in France this year? And are you observing any cuts from France Television? And second question on TF1+. So we saw a slight slowdown in the growth rate in Q1 compared with Q4. Should we expect an acceleration in H2 when you start the Netflix distribution? And do you expect a significant impact from Netflix as soon as you start the distribution with them?

Sorry, you slightly broke up, Eric, for your second question. I have the first one. But for the second one, it's about the impact of Netflix when you...

Do you expect Netflix to contribute significantly in H2 and to show higher growth rate than in Q1 for TF1+ in H2.

Okay. So regarding your first question on Studio TF1 and especially the French perimeter, it's a matter of phasing. We don't see any slowdown from France Television. You know that the relationship between the 2 groups are better than they were a couple of years ago. We have several programs in the pipe, and we are in normal discussion with them to basically have them materialize through the year. We have a strong base effect given the fact that last year, we had also the delivery of contact on the -- for Netflix in France. But it's just phasing. And then on Netflix, it's not necessarily binary when the deal is on, the advertising revenue grows instantly, but pretty much like that. So we expect, yes, a contribution in H2 from the Netflix deal. Of course, there is also a kind of ramp-up from the market. But when the solution is here, we expect a contribution.

[Operator Instructions]

Mr. Gerard, there are no more questions registered at this time. Back to you for any closing remarks.

Thank you very much. Thank you for your question. Let me summarize this call this way. In an environment that remains volatile and offers limited visibility, our leadership position, digital momentum and strong balance sheet provides a solid foundation for the rest of the year. Our priorities remain clear and unchanged, and we confirm our 2026 targets. Thank you very much.

Good evening. This is the conference operator. Welcome, and thank you for joining the TF1's Full Year 2025 Results Conference Call and Webcast. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Rodolphe Belmer, Chief Executive Officer; and Mr. Pierre-Alain Gerard, Executive VP, Finance, Strategy and Procurement. Please go ahead, sir.

Good evening, everyone, and thank you for joining us for our full year results presentation. As said, I'm Rodolphe Belmer, the CEO of the group; and along with Pierre-Alain Gerard, the CFO, we will present TF1 Group 2025 results.

Let's start on Page 3 with the key highlights of the year. Starting with audience. In 2025, TF1 Group confirmed its leading position, both in terms of overall audience and among younger generations. TF1 Group made progress in all targets year-on-year with an audience share rising by 1 percentage point among women below 50 and by 0.4 percentage points among individuals aged 25 to 49. TF1 channel maintained its high audience share in the 4-plus target group, reaching 18.7%, stable year-on-year and up 0.1 points versus 2023.

With a distinctive editorial stance on the latest international political and economic news, LCI has achieved an audience share of over 2% in the 4-plus target group since it moved to DTT channel #15 in June and records the strongest audience growth among news channels over the past year. TF1 Group's content achieved unparalleled scale, reaching 60 million monthly viewers, equivalent to 94% of the French population, a unique position in the media landscape. Focusing on the individuals aged 15 to 34, our content was watched by 15 million people per month, 15 million of this age representing 97% of this age group. In digital, TF1+ attracted 38 million streamers per month on average in 2025 and 42 million streamers, users in October 2025, our new record.

Financial performance now, the group consolidated revenue amounted to EUR 2.3 billion in 2025, almost stable like-for-like and at constant currency. This amount includes an advertising revenue of EUR 1.6 billion, a 4% decrease year-on-year, reflecting the structural linear market decline exacerbated by an unstable environment throughout the year, in particular in the fourth quarter due to France's political and fiscal situation.

Despite these headwinds, TF1+ maintained a strong growth momentum for the second year in a row. Its advertising revenue rose by nearly 40% year-on-year to close to EUR 200 million, largely outperforming should I say, the digital advertising market. Our Studio business recorded good momentum with a 9% growth. Margin from activities stood at 11%, in line with our revised target. Finally, the group reinforced its financial position with net cash of EUR 515 million at end December, up EUR 9 million year-on-year. Overall, I would say that in a complex environment, the group achieved its revised 2025 targets, demonstrating the success of its strategy as well as its resilience.

Now let's go to more details. We'll first give you an update on our business segment, then we'll provide additional information on our financial results, and then we will update you on our strategy and the outlook for the next year. And we'll close, as usual, with the Q&A session.

Starting with a quick update on our linear streaming and studio business lines. I'm starting on Page 6 with a quick reminder of why television and of course, TF1 in particular, offers a unique value proposition in the media landscape, unique and distinctive. Reach remains our core competitive advantage, underpinning the unmatched value we deliver to the advertisers and viewers alike. In 2025, TV overall reach stood at 77% daily, while TF1 Group maintained an unrivaled position, covering 53% of French people every day, well above any other media business such as YouTube, SVOD services and TikTok.

On the right-hand side of the slide, you will see that beyond reach, TF1 also delivers a superior return on investment for advertisers. On the French TV market, TF1 delivers industry-leading ROI for advertisers with every euro spent on our channel, generating EUR 6.3 in incremental sales, a figure that rises to EUR 6.6 during prime time, outperforming all TV competitors. The return for our DTT channels is also at EUR 6.6, which is also above, of course, any other TV player, underpinning the strong resilience and pricing power of the group in the French market. It's worth noting that within the French broader video advertising market, TF1 currently delivers a similar ROI versus online video platforms, demonstrating the group's competitiveness and strategic positioning to drive incremental market share gains.

Turning to Page 7 now. In terms of audience share, the group maintained its leadership across commercial targets and the TF1 channel retained a significant lead over its main competitor by almost 10 points among women below 50 with an audience share of 23% and ahead by 8 points among individuals aged 25 to 49 with an audience share of 20%. The TF1 channel recorded the best ratings in most genres like French drama, entertainment and movies. The group's news, which plays an essential role in the democratic debate in France, continued to strengthen its position with 99 out of the 100 best news ratings of the year. Our news programs moved further ahead of their competitor, and our morning show, Bonjour !, became the second most popular in that category. LCI, our news channel, recorded the fastest audience growth in the year for news channels since the DTT renumbering.

Let's move to streaming, Page 8. Our strategy is to leverage the group's solid content lineup to address both linear and nonlinear exploitations. 20% of total viewing today of the group comes from nonlinear consumption among individuals aged 25 to 49 for TF1. This share is even higher on our strong franchises, reaching, for example, more than 80% for the reality TV genre and close to 50% for our daily soaps like Plus Belle La Vie.

In just 2 years since launch, TF1+ has established itself as the leading free streaming platform for French-speaking audiences, driving growth across all key metrics from brand awareness to monetization. In terms of brand awareness, TF1+ reached a level of 81%, a 3-point increase over last year. The application had first visibility across 69% of households with connected TV devices, up from 68% at end 2024.

Regarding consumption, TF1+ offers more than 35,000 hours of programs available at any time, including aggregated third-party content. On average, the platform attracted 38 million streamers per month in 2025 compared to 33 million in 2024. This number increased quarter after quarter in 2025, reaching 41.5 million streamers on average in Q4. Streamers visited the platform 4.7 times per month on average in 2025, up 3% over the year before.

As a result, 1.2 billion hours of content were watched on TF1+ in 2025, almost 25% ahead of France's second largest platform. Based on site-centric figures, consumption rose by 12% year-on-year. Ad pressure reached 5 minutes and 14 seconds per hour on average, up 15% from 2024 with a target of around 6 minutes on the midterm. And finally, CPM stood at EUR 13.5 on average, broadly stable compared to 2024 with a target of around EUR 15 in the midterm.

The strong performance translated into a 36% year-on-year increase in advertising revenues with TF1+ almost reaching the EUR 200 million milestone, a proof of its growing appeal among advertisers. After launching TF1+ in January 2024 and having positioned it in the advertising market as the premium alternative to YouTube, the group has entered in 2025, the second phase of its strategic plan. The first element of this second phase is the new form of monetization on TF1+, a new form of monetization that involves micro payments. This initiative is inspired by the model by the mobile gaming industry where it has proven largely successful.

Since last September, streamers visiting TF1+ have had access in return for a small payment to new features like previews of our programs or ad-free content as well as an exclusive live channel, for instance, of our show, Star Academy. These offers have been adopted fast by TF1 streamers with 700,000 transactions recorded between September and December. And these initial figures are very promising because the micro payment offers have been deployed only in a small perimeter of devices since most telcos have not been deployed yet.

On the TF1+ application, an environment where the offer is fully deployed, streamers who have converted to this offer have made on average 3 transactions per month between September and December. Note that the TV screen only represented 15% of micro payments transactions since launch, showing that there is room for progress once the offer is fully deployed, notably across telcos. And we're confident this initiative will unlock a significant revenue stream in the medium term.

Page 10, update on Studio TF1. Studio revenue totaled EUR 376 million in 2025, up 9% year-on-year. This good performance was notably due to the contribution of JPG acquired during the summer of 2024. The soap Tout Pour La Lumière, All for Light in English, broadcast on TF1 and Netflix, the production of the Flemish version of Dancing with the Stars, the deliveries to streaming platforms of premium series like Merteuil for HBO Max and the successful theatrical releases of key movies like Chasse Gardée 2, Game Reserve 2 ranked #5 in terms of ticket -- of admissions in the French market in 2025.

Now turning to the financial performance with Mr. Pierre-Alain Gerard.

Thank you, Rodolphe. Good evening, everyone. Let's move now to a more detailed breakdown of our financial results for the full year 2025. You will find additional information in our consolidated financial statements and their notes as well as our management report, all of which are available on our website.

First, a word on revenue on Page 12. The TF1 Group's consolidated revenue amounted to EUR 2.3 billion in 2025, down 2.5% year-on-year, but almost unchanged like-for-like and at constant FX. The small gap we have with the consensus mostly relates to perimeter effects. Revenue in the Media segment totaled EUR 1.9 billion in 2025, down 2% like-for-like. In linear advertising, the structural market decline was exacerbated by an unstable environment throughout the year, in particular, in the fourth quarter due to France's political and fiscal situation. However, that decline was partly offset by an increase in the group's market share, showing the commercial relevance of the ad sales house offering.

Despite these headwinds, TF1+ continued to demonstrate its appeal for advertisers. For the second consecutive year, its advertising revenue rose by almost 40%, reaching about EUR 200 million in 2025. Again, note that we are only talking about ad revenue for TF1+ here. When taking into account advertising revenue from TF1 Info and addressable TV, along with revenue from subscription, TF1+ Premium and micro payments, our total revenue amounted to EUR 249 million in 2025, our total digital revenue. This KPI encompasses the various levers activated by the group to boost our advertising and non-advertising revenue. We will keep disclosing it in our future quarterly publications.

Non-advertising media revenue amounted to EUR 347 million, down 6%. After rising in the first 9 months of the year with good performance by interactivity as well as music and live shows, the decline in revenue at the end of the year resulted mainly from the deconsolidation of Play Two and My Little Paris. Please note that those activities generated slightly more than EUR 40 million in revenue in 2025, which will, therefore, not be included in our 2026 revenue.

Studio TF1's revenue totaled EUR 376 million in 2025, up 9% year-on-year. It included a EUR 44 million contribution from JPG as opposed to EUR 24 million last year. Like-for-like, revenue rose by 6.5%, notably thanks to the premium deliveries that we mentioned earlier.

Now turning to profitability on Page 13. TF1 Group's COPA amounted to EUR 252 million in 2025, in line with the company compiled consensus. The impact of lower advertising revenue compared to last year was mitigated by the strict cost control and active portfolio management, which allowed the group to preserve resources that are crucial to the second phase of its strategic acceleration. Margin from activities stood at 11%, corresponding to the midpoint of the revised target range provided during our Q3 2025 results.

Coming back to our value creation through our active portfolio management. The group materialized EUR 38 million of capital gains in 2025 from the disposals of My Little Paris and Play Two during the summer, along with the closing of a partnership with Sony Music Publishing regarding music assets in Q4. Excluding items, but factoring our digital reinvestments, margin from activities would stand around 9%.

The Media segment reported COPA of EUR 212 million. This represents a year-on-year decrease of EUR 47 million, mainly resulting from the decline in advertising revenue. Studio TF1 generated COPA of EUR 40 million and a margin of 10.7%, broadly stable compared to last year.

Regarding the income statement on Page 14, I have already commented on consolidated revenue and COPA. Looking further down, operating profit totaled EUR 233 million. That figure includes EUR 10 million in PPA charges related to the JPG acquisition and EUR 9 million in nonrecurring expenses mainly related to the group's digital acceleration plan. Net profit attributable to the group, excluding exceptional tax surcharge, was EUR 168 million, down EUR 38 million, mainly reflecting COPA decrease.

Compared with 2024, net profit was also affected by reduced income from the group's cash position due to lower market interest rates and a reduction in the group's share of associates, mostly due to the impairment of a small investment at Studio TF1. The impact of the exceptional tax surcharge in 2025 was minus EUR 15 million. This mechanism has been maintained in 2026 in France, but the impact for TF1 should be lower in the mid- to high single-digit range.

Moving on to the net cash position. At end December 2025, the TF1 Group had a solid financial position with net cash of EUR 515 million. Our solid balance sheet is an asset to navigate our complex environment and keep rolling out our digital road map. The EUR 9 million increase compared with 2024 mainly reflects free cash flow after working cap of EUR 102 million, dividends of EUR 127 million paid by TF1 in April and an impact from disposals of around EUR 20 million.

Looking at free cash flow before working cap, it stood at EUR 85 million, which is EUR 144 million below 2024 level, mainly explained by the following: a EUR 71 million decrease of net cash flow, mainly related to the linear decline of the exceptional and the exceptional tax surcharge in France, a EUR 70 million increase of net CapEx with three drivers. First, a base effect related to the disposal of the Ushuaïa brand in 2024 for roughly EUR 30 million, EUR 27 million exactly. The delivery schedule, which was expected for co-productions in 2025 at our Media segment and a more sustained level of production activity at Studio TF1. Here, I remind you that production costs are capitalized. So this is future activity.

On Page 16, let me wrap up the key takeaways of 2025 from a financial standpoint. In a very uncertain and unstable environment, the group successfully tackled advertising market headwinds, thus mitigating the impact on COPA. First, we managed to gain market shares across the board in a more challenging market than expected, underlying the competitiveness of our ad sales house. Digital grew by 36%, significantly ahead of the market, while our linear revenue was down by a high single-digit percentage, still outperforming the linear market estimated to be down by low double-digit percentage.

Second, we kept a tight control on costs as illustrated by the EUR 19 million decrease in programming costs. And on the other hand, we preserve resources required to fuel the second phase of our strategy. Lastly, we actively manage our portfolio, both on Media and on Studio, as illustrated by the disposal of My Little Paris, Play Two and the partnership we signed with Sony Music Publishing regarding music assets and by the successful integration of JPG.

Let's now turn to Page 17. In line with our distribution policy targeting a growing dividend, the Board will propose at the next general meeting a dividend of EUR 0.63 per share, up 5% from 2024 and 40% up from 2021. This dividend offers an attractive yield of 8%. I now leave the floor to Rodolphe to provide an update on our strategy and outlook.

Let's move to Slide 19 on our strategy. The first pillar of our strategy is to consolidate our linear market share in a declining advertising market. First volume, the reach of television and the reach of TF1 in particular, is a differentiating factor for brands or customers. A premium content offering is instrumental in an increasing fragmented media environment as it generates the best advertising inventories on commercial targets for our customers.

To maintain this advantage, we secured the most powerful programs, including the most iconic unscripted franchises such as Dancing with the Stars, Koh-Lanta, The Voice, Mask Singer, also premium French drama with a very solid lineup with the much awaited Cat’s Eyes Season 2 or the historical drama L’été [ 36 ], Summer 36. The flagship -- with flagship also sports events of 2026 with the majority of the six nations matches, it's Rugby, and the new competition in Rugby called the Nation's Championship. In football, French Ligue played by the French national team as well as the Nation's League matches of this year and the Women's World Cup in basketball.

Second lever that we activate to consolidate our market share, of course, is the implementation of a distinctive commercial and pricing strategy. After changing the length of its advertising pricing units in 2025, the group has overhauled its linear advertising offering, featuring a new segmentation that is more suited to market expectation and that enables us to fully extract the value from the unrivaled quality and unique depth of our advertising inventories.

What does it mean it means that we now offer, on the one hand, the highly powerful and premium screens of TF1, which have a unique value in the market through what we call the Peak offering. And on the other hand, another product that we call Reach, which offers the rest of our multichannel inventory, representing 1/3 of the total market inventory. This new segmentation, Reach and Peak strengthens the group positioning on the market as the most relevant partner for advertisers as it covers all their marketing and business needs and underpins our objective of growth in market share of the advertising market.

The second pillar of our strategy is to increase our nonlinear revenue by gaining market share in the fast-growing digital video advertising market. To that end, we intend to further increase the digital consumption of our programs, notably through two levers. First, we will extend our reach, thanks to groundbreaking distribution deals. Starting in June 2026, our linear channels as well as the vast majority of our on-demand content will be made available on Netflix. This unprecedented alliance will unlock additional audiences for TF1 as a significant portion of Netflix subscribers, around 12 million in France according to various sources, consider Netflix as their primary source of TV entertainment and are low consumers of television content.

Second, we will continue to offer attractive content, notably through our aggregation strategy. TF1+ already offers more than 35,000 hours of programs available at any time, including aggregated third-party content. More partnerships will be announced in 2026, further enhancing TF1+ catalog with content that complement those already available on the platform. This aggregation strategy reinforces the platform's appeal with limited impact on the group's programming cost as it is based mostly on a revenue sharing model.

Then we intend to improve monetization as illustrated by two strong initiatives. The first one, as previously mentioned, we are developing a new form of monetization, which is not advertising based through micro payments. In 2026, the group will expand its catalog of eligible content and strengthen the editorialization around these offerings to maximize their visibility. The rollout of micro payments across all four telecom operator set-top boxes will continue and will include integrated payment solutions in-app payments to make purchase easier. Once our offer is fully deployed, we believe that there is a significant revenue potential as the penetration rate on the TF1+ mobile app is currently 3x higher than in other environments.

Second, we will continue to address advertisers' needs across the entire marketing funnel from brand awareness to conversion with the development of innovative and distinctive advertising formats. Advertisers are adopting more sophisticated marketing strategies aimed at creating brand interactions through the consumer lifetime value.

While most platforms on the market only offer pre-rolls or mid-rolls, we have offered innovative advertising formats starting in 2025 like Cover+ or Ad Pause to increase awareness and brand values. In 2026, we will launch new formats on connected TVs in order to stimulate consumer purchases like Send to Phone redirections or Carousel Retail Ads.

Another pillar of our strategy will be to enhance our media buying effectiveness on both linear and digital. To that end, we have launched what we call TF1 Ad Manager in January, a transactional and service-oriented platform, which offers a fully simplified and competitive experience to agencies and advertisers, meeting the standards of pure players. TF1 Ad Manager will make it much easier for our customers to do their media buying and oversee their advertising campaigns effectiveness.

The platform makes use of AI and machine learning at each stage of the process from audience simulation to content creation and key metrics reporting. It will be possible to set up a campaign in just a few minutes instead of several hours or days until now. This initiative has been very well received, of course, by our customers and the big 5 agencies are already on board and setting up campaigns.

This platform, even more importantly, also aims at addressing a new segment of the advertising market that we call the mid-tail segment. This market, which comprises small and medium enterprises as well as commercial retail networks is estimated to represent around EUR 2 billion in France in terms of video advertising, which is quite significant. Starting in April 2026, our dedicated mid-tail solution will enable small and medium enterprises, small and medium customers to buy and easily create geo-targeted advertising inventories, starting with low price points like EUR 1,000 and therefore, making television accessible to all and to smaller customer, television and streaming space.

The penetration of this market segment will grow our advertising revenue while diversifying our customer portfolio towards smaller businesses, which are evolving in different business cycles than our historical multinational customers. This initiative will be driven by a small dedicated team, therefore, limiting the impact on the group's fixed cost base and will rely on an outsourced sales team providing nationwide coverage.

Studio TF1, Page 22. Our 2026 priorities will be to secure the business in France with long-standing partners and notably with the ongoing production of the three daily shows for TF1 and of the Magazine de La Santé for France Television. We will also keep expanding the customer mix via collaborations with the streaming platforms as illustrated by the future delivery of Day 1 to Prime Video and with the expansion of our film production and distribution, cinema production and distribution, notably with the launch of the new film distribution division with four releases already scheduled, including Jean Moulin, the biopic of Jean Moulin, starring Gilles Lellouche.

This is a key milestone for the group, allowing Studio TF1 to support productions from development to theatrical release. Activity will be, again, skewed towards the second half of the year, notably due to Studio TF1 America delivery schedule.

Page 23. Capitalizing on our strategy. Our new digital initiatives and our solid financial position, we reiterate the following targets: Number one, achieve a strong double-digit revenue growth in digital in 2026. Note that we refer to the new digital revenue KPI here. Second, aim for a growing dividend policy in the coming years. In 2026, we anticipate a continued strong pressure on the linear advertising market amid rapidly shifting consumer habits and macroeconomic uncertainty.

During this digital transition phase, we intend to maintain in 2026 a mid- to high single-digit margin from activities before capital gains, subject to the evolution of the linear market. Still, we are well positioned to navigate these challenges through our digital acceleration, cost discipline and a solid balance sheet. That's all for us, and we are ready to take your questions.

[Operator Instructions] The first question comes from Christophe Cherblanc of Bernstein.

The first one was on advertising. Given the exit rate of 2025, do you think it's fair to expect at least a double-digit decline in ad revenues in Q1? And I know Q2 is far away, but what do you expect the World Cup impact to be, i.e., would you expect advertisers to save money for the event or to spend before or after? That would be the first question.

The second question is on programming costs. Programming costs were below expectation, I believe, at EUR 967 million. Is it fair to expect that as a starting point for the '26 budget? And the last one was on the disposal or the capital gain. The Sony publishing gain in music, is it a cash impact? And was it recognized in media or in content?

Thank you for the set of questions. I'll answer the first two questions and maybe Pierre-Alain will answer the third one. On the advertising outlook for 2026. Well, as you know, we don't guide on this metric, but I can give you some color of what we think for the outlook of this and the perspective.

What we can say is that the linear advertising market is under pressure due to different factors like the erosion -- like the migration of the audience from linear to digital, which reduces watching time and which in turn has an effect on the advertising inventories that we do produce and that we can sell to our customers. You said that we ended the year -- the 2025 year with a decline in linear at a double-digit pace, true, but we think that this decline -- this market decline in the Q4 of 2025 was the outcome of two elements.

First element, the secular slowdown of the linear advertising market; and second, the conjunctural consequence of the political unrest in our country. Which means that with the political instability being now, I would say, absorbed by our customers, if I may say so. The only remaining effect -- negative effect headwind that we see in 2026 is the evolution of the consumer behavior, which means that we anticipate at a market level, an evolution which is more acceptable than double digit, better than double digit, meaning, it will be in decline, but single digit, mid- to high single digit, we could say. But I mean linear.

What we typically do, as you have noted, we typically perform a bit better than market. And we're able to gain market share because our ratings are solid and our commercial strategy delivers well. It has been the case in 2025 since we gained around 2 percentage points of market share in the linear advertising market. 2026, we anticipate a market share which will be more stable. Why? Because, as you said, our competitor will have the World Cup in the summer, which is not a good moment for advertising revenues, as you know. But still, it means that we anticipate a stable market share in the linear market for us.

In digital, the market is well oriented, around, well, double digit, low double digit, 10% to 15% growth annually, and we do far better than the market because our digital strategy works very well. We post figures for '25 in growth by 36% year-on-year after almost 40% the year before. And we will continue to have -- to post very solid double-digit growth in 2026 on the back of the very strong adoption of TF1+ among French users and also advertisers.

Programming cost, we had programming cost of around EUR 970 million in '25, as you said. And you can assume that our programming cost base will be more or less similar in 2026. Our objective during the transition phase that we are having, our objective is to fight in linear to limit and to stabilize the erosion in linear as much as we can, grow as much as we can in digital, and we did very well, while being able to maintain our programming cost.

And maybe let me answer your question on the deal we struck with Sony Music Publishing. Basically, we had a library of around 9,000 titles, musical titles in-house that have been built in-house within TF1. And we sold a majority stake to Sony Music Publishing, which will boost the distribution of these titles internationally. So Sony took control of this company, TF1 keeping 49%. So the cash impact of this transaction is only limited to the 51% we sold and is a low double-digit figure.

The next question comes from Conor O'Shea with Kepler Cheuvreux.

A few questions from my side as well. Just -- sorry to come back on the advertising outlook for '26 as it stands today. I mean, from your comments, Rodolphe, can we conclude that if the linear is down mid- to high single, so let's say, 7% or 8%, and the digital is up, let's say, 20%, that we could be down overall by 3% to 4%? Or is that too optimistic at this stage? That's the first question.

Second question, I think there was quite a step-up in CapEx in 2025 and as a percentage of revenues as well. Is that a permanent step-up? Or could we expect an easing in '26 and the future years? And then just last question. You gave some interesting data points on the micro payments in the fourth quarter. Can we have a sense of what you expect for '26 and just have an idea of the kind of drop-through of units of revenue to margins in micro payments? Is it pure margin business? Or are there some costs associated with that?

Well, thank you, Conor. On the advertising outlook for '26, well, we have described, I think, quite explicitly what we think will be the outlook for the linear market and how we will perform in terms of market share. And I think we have understood well what's our view of the perspective in that segment.

Digital, this year, we have gained -- we have grown by 36%, the year before, 40%. And we said we will maintain a very solid double-digit growth in '26. We're not going to guide specifically on that notion, on that element. But we expect we continue to deliver a very solid growth far ahead of the average market growth in digital. And we expect the market growth in digital as everybody, there is a consensus on that perspective. Well, we estimate that the market will grow again in digital video in 2026 by around 15%.

We have the growth of TF1 which we think will continue to establish itself well among the French population. And we have quite a headroom to continue to grow in TF1+. There is the growth of consumption, which will continue, number of hours that we will continue to -- hours viewed that will continue to produce. As we said, we will also be able to grow substantially the penetration of TF1+, hence, the number of hours viewed with the distribution on Netflix that you should consider.

Another element, we are still not where we want to be in terms of advertising load. We have produced around 5 minutes per hour of advertising load in 2025. And as we said, we want to reach 6 minutes in 2026. And there is the CPMs. We produced CPMs of EUR 13.5 per mille in 5, and we want to grow that number steadily to reach EUR 15 in the midterm, not in '26, but after. But it means that if you combine all that, the leeway for solid growth is very solid, plus we have two initiatives beyond the expansion of Netflix, which will foster the growth rate of TF1+.

That's the micro payment, and I'm going to explain more on that in a minute. And there is the initiative which is very important in the mid-tail segment. We have invested significant efforts to develop a very solid technological platform to enable the purchase of advertising inventories by small and medium customers sitting in the provinces of France, retail networks or leisure parks or all those kinds of categories, which are in search of geo-targeted advertising. And now we have a solution for them. And it's a big market, more than EUR 2 billion, which means -- which is comparable to the size of the television market of today. And with all that, we think we have growth avenues, which are very solid to feed the growth rate of digital at a very solid double digit in the coming years.

Maybe I can follow up on CapEx, Conor, because I think Rodolphe has answered your first and your third question.

No, I'm not completely. I want us to deliver on micro payment.

So just a quick word on CapEx. So you see that there is an increase in EUR 70 million in CapEx compared to last year. Bear in mind that last year, we sold Ushuaïa, which came as a disposal for around, let's simplify EUR 30 million. So you only have to explain EUR 40 million increase. And this is on one side related to the coproduction delivery on the media side, which will bring revenue in the future. And also on the -- as you know, on the Studio TF1 side, we capitalize the cost. So basically, what you see in CapEx is future revenue. So it's good cholesterol somehow.

Micro payment, I wanted to tell more -- I promised some more words on this initiative that we are taking. Well, that's the very beginning of it since we launched in September, while deploying progressively this new service, this new feature across all the devices that we serve with TF1+. And we can say that while the initial results were quite positive and encouraging. In terms of -- well, what we said in the presentation, I don't know if it was clear, but in the universes among the devices in which the solution is deployed correctly, we had a usage, which is very interesting with a penetration of between 1% and 2% of the number of users, which have used the service.

And remember that the number of people visiting TF1+ each month is very large. It's 40 million. And those people, we said that, that used -- that tried -- between 1% and 2% of the total population that tried the service, they made 3 purchases per month. It's quite big. And if you apply that to the total portfolio of users of TF1+, you have a sense of what's the magnitude of the business potential behind that initiative, which is not huge, but substantial. Now in terms of margin of the service, you can assume an order of magnitude of 50% because we have to share revenues with third parties, with our partners.

Makes sense. And can I ask just a quick follow-up question on the margins generally? I mean, if the calculations are accurate in terms of the potential advertising decline overall, including the growth on digital after all the valid points that you made, that might suggest a decline that's not that different from '25 versus '24. In that context, your margins fell by 160 basis points. If you're now guiding towards more or less flat programming costs and potentially, let's say, I know you're not specifically guiding, but maybe a similar decline in advertising revenues, why would the margins fall to mid- to high single digit. I mean that's a much steeper fall. Are there substantially more variable costs in there relating to the TF1+ or other costs that we're not taking into account? Or are you just being very conservative at this stage of the year?

Well, I would say a bit of both, if I may say so. What you may have in mind is that, well, of course, we are posting a margin of 11% for year 2025, for the year 2025. But on this margin of 11%, we have capital gains, which represent around a bit less than EUR 40 million. If you exclude those capital gains, we have made a margin in 2025 of 9%. And that's why when we say we estimate, we guide that our margin in 2026 will be stable in the corridor, mid- to high single digit. That's because we estimate that we will stay in the same kind of order of magnitude as what we did in 2025, more or less.

I think the reasoning would -- yes, yes. I think you didn't have the right starting point.

No, makes sense. But then...

I said point is not 11%, it's 9%.

9%. But the underlying change could be something similar if we get a similar top line.

Well, that's something that could be said, yes.

Could be said, okay. Makes sense.

And what we must say is that, well, we don't mean -- we don't intend to mean that we are not going to try to generate capital gains in 2026 because we have a sort of reverse bolt-on strategy, which works quite well, and we intend to continue likewise. But we don't want to guide on that because, of course, there are -- that's not within -- totally within our hands. We have counterparts to convince each time, and we don't want to take objectives on that kind of commitments. And that's why we want to guide only on the margin from activities without the capital gains, and that's why we express it likewise this year.

And just to follow up on that, Conor, because I know you asked the question previously. We only do this kind of sale when there is an important gap in terms of valuation between the trading multiples of this kind of assets in the market and what we can achieve when there is a gap of several turns, we find that attractive and we create value and then we sell.

The next question comes from Eric Ravary of CIC.

First one on Studio TF1. Could you give us an idea of the kind of growth that you're expecting for 2026 with the lineup that you presented? And also, could you tell us the exposure to France Television and the planned cost cutting in content from France TV? Second question is on TF1+. CPM was stable at EUR 13.5 in '25. So could we have a comment on the reason why it was stable last year? And third question is on the disposals of My Little Paris and Play Two. What was the impact on COPA on Q4, please?

Sorry, I missed your second question, sorry, for asking you to...

Yes. CPM on TF1. It was stable last year. So could you explain that, please?

Yes. On the outlook for Studio TF1, what we can say without being too precise at this stage because we don't want to guide on this metric, but we will continue to grow softly in 2026 as we did in 2025. Of course, there is the uncertainty of the evolution of one of our key customers, which is France Television. But what we understand from the very close relationship that we have with them is that most probably the revenue stream that we get from France Television and the orders that we take from them should stay solid in 2026 because they like the franchises that we make for them.

On the CPM, yes, it was stable in 2025. Well, it's a combination of different factors, but we have tried to continue to focus on the growth of TF1+ in 2025. But we think we can continue to progressively grow the CPM in the next few years and to reach around 15% with the development and the sophistication of the data and the digitization we are able to deliver to our customers.

Then, Eric, you were asking about the perimeter effect and the consequences of the disposals from My Little Paris, Play Two and -- which is mostly the perimeter effect. We said during the presentation that it's slightly above EUR 40 million that won't be to take into account in 2026.

EUR 40 million in revenues?

Yes, in revenue for the full year.

In COPA?

Nothing since we disposed during the summer.

Yes. But I mean compared with 2024, what was the impact on the...

Yes, the COPA contribution of these two was breakeven plus. So not a big impact on COPA.

The next question is from Jérôme Bodin with ODDO BHF.

Just a quick question on the -- if you can come back on the Q4 advertising trend because you mentioned two factors for this decline. So first, the economic situation, which is true, but it's not a total disaster. And according to other media, there is not a big slowdown in the French market. So I can understand that point. And then you mentioned a strong migration from TV to digital. But the same, there is no big acceleration of the decline of linear TV versus digital. So why according to you, there is such a drop in October and November in the TV market? Is it something very short term with a temptation of clients to move from TV to digital short term, and then we should get a normalization in 2026. So just to try to understand why such pressure, which is very unusual if we look back to your historical number.

Well, our analysis of this question, of course, and we have spent a lot of time to analyze those elements and to make up our mind on what's the drivers of the break in the trend of the advertising market in France in 2026. What we said is that there is a secular element, which is not specific to October and November, of course, it's constant. That's what I mean by secular. It's the progressive erosion of linear watching migrating to digital. And this -- well, the watching time of the commercial targets is in recess in the order of 10% year-on-year. That's an underpinning factor of decline. Of course, it's compensated by price increase, but slightly price increase of the GRPs. That consideration number one.

The recess in the French market in Q4 was much worse than that, which is unexpected. And with one explanation only, which is the political unrest in the country. And we have seen a very brutal slowdown in the market trend at the end of September when the Prime Minister stepped down again. Which has sort of frozen the investment of our customers for some time at the end of the year, which -- because well this kind of events or accidents at this time of the calendar year for our customers is not good because, of course, it does freeze their willingness to invest. And that's exactly what happened.

Now what we think is that the secular trend will continue affecting and being a headwind to the linear market. And we have quoted figures which are -- and I think Conor has made a summary of that, which was quite accurate in our view. And there is the element of uncertainty among the advertisers driven by the political context, which will progressively vanish. And that's why we think that '26 will be better in the linear segment than the Q4 of 2025. And another point I would like to make, I commented on market figures, not our figures because we have sustainably constantly made better, delivered better than the average market. In the last quarter of the year, well, we did 5 percentage points better according to our estimates than the average market.

Maybe just to follow up quickly. So you don't think that this is linked to a change in terms of commercial policy from clients, a short-term change or from advertising agencies that may have put pressure on the -- specifically on the French market at the end of the year. It's much more structural according to you.

Yes, it's much more structural. And the reason -- it's not specific to French market. When you look to in our neighborhood, the adjacent markets like the U.K. or Germany, the trends are more or less similar. Of course, the trend was marked especially with the political situation in France in Q4. But if you take a broader view and if you look at annual trends, it's very similar across European countries, if you accept Italy for -- because digitization is a bit lower in this country, but it's similar everywhere in Europe. It's not specific to France. And when we say that the situation should be better than Q4 in '26, we have some data points to sustain that assumption because we have started to negotiate with our customers, the annual commitments that they take vis-a-vis us, meaning that we know already more or less what will be the picture for '26.

The next question comes from the webcast from Alexandre Desprez with AlphaValue. Do you think that the seemingly huge decline in the French TV market is a sign of cannibalization by the streaming platforms launched by broadcasters in the past year?

Well, there is no -- well, again, sorry to insist, but there is no huge decline in the French market. There was a drop, air pocket in Q4 of 2025, driven by the political unrest, which added to the secular decline of the linear market, which is more progressive. Second, do we see cannibalization? No. Why? Because the first 9 months of the year were much better, while our streaming platform, for instance, did very, very well, and we're able to more or less have only slightly declining linear revenues across the first 9 months of the year, while our digital platform grew by 40%, which means that it's not a direct consequence.

There is an element which is very clear now, which is there is a migration of usage from linear to digital, which translates into declining watching time of television in the order of 10% year-on-year among the commercial targets, which creates an underpinning trend for the revenues in that segment of the market. You should assume that -- well, there is a declining trend in watching time, which means that what we produce and what we sell, which is the GRP in volume will decline by more or less 10%, but will be compensated slightly by price increase.

In the past, we have been able to offset entirely the erosion in viewing time in GRP production by price increase. But now with the more direct competition from YouTube and the likes and with ROI, which we told you that in our presentation with ROI of TF1 being more or less similar to YouTube and the video online platforms, our price increase abilities or headroom is more limited and which means that our price increase will be more in the mid-single digit, low to mid-single-digit order of magnitude rather than two-digit level that we had before. And that's what will be resulting in the trend in the linear market.

And hopefully, we'll offset that erosion factor with the strong growth that we have and the unique and the very specific and insist on that we have very distinctive results on that front with our very, very strong digital strategy, which is proving very, very effective and has been able to more or less absorb the erosion in linear. When you look at our figures, at our revenues in '25, if you exclude the perimeter effects, we are stable, which is, in my view, in the European landscape will be very distinctive.

Gentlemen, there are no more questions registered at this time. Back to you for any closing remarks, if any.

Well, I think no closing remarks. Well, thank you for taking the time so late in the evening. What I'd like to say is that, well, we believe that our figures were very strong in 2025 with performance in linear in which we were able to outperform the market largely and our competitors and also with a very distinctive, unique performance in digital with a very solid growth for the second year in a row of around almost 40%, which enabled us to post revenues figures, which are almost stable at constant perimeter and FX.

Going forward, we believe that the pressure -- the downward pressure in linear will continue relatively at a mid- to high single-digit level in 2026, but we'll continue because we have a very offensive, very aggressive, very innovative digital strategy. We'll continue to post very solid double-digit -- strong double-digit growth rate in digital in 2026, which will continue to produce solid set of figures for the total group in 2026, enabling us to continue to foster a strong dividend policy. That's all for us for today. Thank you for taking the time and see you for me in 6 months because next time, you'll have the chance to have Pierre-Alain for yourself.

Thank you very much.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

Good afternoon. This is the conference operator. Welcome, and thank you for joining the TF1's 9 Months 2025 Results Conference Call and Webcast. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Pierre-Alain Gerard, Executive VP, Finance, Strategy and Procurement. Please go ahead, sir.

Thank you very much. Good evening, everyone, and thank you for joining us for our 9 months results presentation. Let's start with our key highlights on Page 3. Audience first. In the first 9 months, the TF1 Group made progress in all targets year-on-year and reinforced its leadership.

Audience share rose by 0.8 points to 33.8% among women below 50 and by 0.7 points to 30.7% among individuals aged 25 to 49. The TF1 channel maintained its high audience share in the 4+ target, reaching 18.8%, up 0.2 points year-on-year. With a distinctive editorial stance on the latest international political and economic news, LCI has achieved an audience share of over 2% in the 4+ target since it moved to DTT Channel 15 in June, already ahead of our year-end expectation.

In digital, TF1+ attracted 36 million streamers per month on average in the first 9 months and 41 million streamers in September 2025, a new record. Second, our financial performance. The group's consolidated revenue amounted to EUR 1.6 billion in the first 9 months of 2025, stable year-on-year.

This amount includes an advertising revenue of EUR 1.1 billion. The 2% decline compared to last year reflects an uncertain and unstable environment. Also bear in mind that the first 9 months of 2024 had been a strong period for the group, fueled by a dynamic market in H1, the broadcasting of the Euro and the halo effect from the Paris Olympics.

Now focusing on TF1+. Advertising revenue maintained its strong growth momentum, rising by 41% year-on-year to EUR 134 million. Regarding our COPA and net profit, excluding tax surcharge, we successfully managed to mitigate the impact of ad market headwinds as they only declined by a few million euros compared to last year. We will come back to this in more detail later.

The group also maintained a strong financial position with net cash of EUR 465 million at September with an increase of more than EUR 100 million year-on-year. Capitalizing on its successful strategy, the group confirms the following 2025 targets: strong double-digit revenue growth in digital, aiming for a growing dividend policy in the coming years.

The current phase of political and fiscal instability in France adversely impacted the advertising market in October, linear in particular. First indications for November are also below expectations. Given this context and with limited visibility until the end of the year, the group has adjusted its 2025 guidance for margin from activities to a level between 10.5% and 11.5% versus a broadly stable margin compared to 2024.

This margin level remains solid given adverse market conditions combined with the rollout of our digital strategy. Let's go now into more details. On today's agenda, we'll first give you an update on our business segments. We will then provide additional information on our financial results. After that, we'll update you on our strategy and outlook, and we'll close with a Q&A session.

For those of you who are joining us by phone, note that we are broadcasting this presentation as a webcast. You can also find it on our corporate website. Let's start with a quick update on our linear streaming and studio businesses. Now turning to Page 6 and our audience performance.

Reach is the key underpinning factor of the value we deliver to customers. In the first 9 months, TV's overall daily reach stood at 76%, while TF1 Group maintained an unrivaled position, covering 52% of French people every day, well above any other media such as YouTube, SVOD services or TikTok.

The group maintained its leadership across commercial targets and the TF1 channel retained a significant lead over its main commercial competitor, ahead by 9 points among women below 50 with an audience share of 23%, ahead by 8 points among individuals aged 25 to 49 with an audience share of 20%.

Over the first 9 months, the TF1 channel recording high ratings in its genre, ranking #1 in French drama, news, entertainment and movies. Let's turn now to our streaming activities on Page 7. Our strategy is to leverage the group's solid content lineup to address both linear and non-linear expectations. 20% of total viewing comes from non-linear perception among individuals aged 25 to 49 for the TF1 channel.

This share is even higher on our strong franchises, reaching, for example, more than 80% for the reality TV genre and more than 50% for our daily soaps, Plus Belle La Vie and ICI Tout Commence. Now looking at the right-hand side of the page, let me give you an update on the platform's building blocks.

On consumption, TF1+ attracted 36 million streamers per month on average in the first 9 months and hit a new monthly record with 41 million streamers in September. Overall, streamers watched 834 million hours of content on TF1+ in the first 9 months of 2025 according to Mediametrie, 1.4x the figure achieved by the Second Rank platform. In terms of site-centric figures, which cover all streaming usage not captured by Mediametrie such as specific AVOD and aggregated content, streamed hours rose by 14% year-on-year.

On ad inventories, ad load reached 5 minutes and 4 seconds per hour on average in the first 9 months versus 5 minutes on average in 2024. On the value front, CPM reached EUR 13.2 per CPM, a 1% increase year-on-year. As a result, advertising revenue generated by TF1+ rose by 41%, reaching EUR 134 million at end September.

On next page, after launching TF1+ in January 2024 and having positioned it as the advertising -- in the advertising market as a premium alternative to YouTube, the group has entered the second phase of its strategic plan. The first key aspect of the second phase is the new form of monetization on TF1+ involving micro payments.

Streamers can now take advantage of new features, giving them a la carte access to a wide range of high-quality works and content in return for small payments. Since September, streamers have had access to previews of our top programs. This feature has been rapidly adopted by TF1+ streamers with close to 200,000 transactions recorded over the month of September.

These initial figures are very promising, especially since the micro payment offer is not yet available across all telcos and only covers a small portion of our content. On the TF1+ app, the only environment where this offer was fully deployed in September, this already corresponds to 2.6 transactions per converted streamer.

We have continued to enrich our offer with new features like ad-free content and exclusive live channel for Star Academy launched in October. Now turning to Page 9 for an update on Studio TF1. Its revenue totaled EUR 213 million at end September, growing by 11% year-on-year, supported by a good momentum, notably in the third quarter.

COPA reached EUR 20 million at end September, up EUR 13 million year-on-year. I will come back to this in more details in a few minutes. Highlights in the first 9 months included the launch of TF1, TF1+ and Netflix of our daily series Tout Pour La Lumiere, All For Light in English, the production of Flemish version of Dancing with the Stars for the Belgian channel VTM, the delivery of the documentary series From Rockstar to Killer to Netflix, the third season of Memento Mori for Prime Video, the theatrical releases of the movie, Jouer Avec Le Feu, Avignon and Yapas de Reseau.

Let's move now to a more detailed breakdown of our financial results for the first 9 months of 2025. You will find additional information in our consolidated financial statements and their notes as well as our management report, all of which are available on our website.

First, a word on revenue on Page 11. The group's consolidated revenue amounted to EUR 1.6 billion in the first 9 months of 2025, stable year-on-year and above the company compared consensus. Revenue from the Media segment declined by 1% to EUR 1.4 billion. Advertising revenue amounted to EUR 1.1 billion, down 2.2%.

In linear, the trend in the third quarter was similar to that seen in the first half, with spending by advertisers adversely affected by an uncertain environment. By comparison, the first 9 months of 2024 had been a strong period for the group due to the dynamic market in H1, the broadcasting of the Euro and the halo effect from the Paris Olympics on our revenue.

Despite these headwinds, TF1 gained market share as the overall linear market at end September is estimated to be down by a low double-digit percentage year-on-year. In terms of digital advertising revenue, TF1+ continued to demonstrate its appeal for advertisers, rising by 41% to EUR 134 million in the first 9 months of 2025 and significantly outperforming the market.

And again, let me remind you that we only disclose here advertising revenue and not a broader streaming revenue, which would be much higher. Non-advertising revenue in the Media segment amounted to EUR 264 million in the first 9 months, up 5% year-on-year.

Revenue from interactivity and music and live shows in the first 9 months offset the impact resulting from the deconsolidation of My Little Paris and PlayTwo in the third quarter. Studio TF1's revenue totaled EUR 213 million, an increase of 11% year-on-year. That figure includes a EUR 25 million contribution from JPG compared with EUR 8 million last year.

As a reminder, JPG has been consolidated in Studio TF1 financial statements since the third quarter of 2024, and its activity is skewed towards the second half of the year. Excluding JPG, Studio TF1's revenue still rose in the first 9 months, notably thanks to premium deliveries to platforms and successful theatrical releases, as mentioned earlier.

COPA amounted to -- on Page 12, COPA amounted to EUR 191 million in the first 9 months of 2025, slightly declining by EUR 7 million and above the company compiled consensus. Margin from activities stood at 11.9%.

As a reminder, in Q3 2024, COPA included a EUR 27 million capital gain from the disposal of the Ushuaïa brand. In Q3 2025, the group completed the disposal of the disposals of My Little Paris and PlayTwo that we announced during our H1 results, which generated a capital gain of EUR 17 million.

Excluding those items, COPA in the first 9 months of 2024 rose slightly year-on-year by EUR 3 million. The Media segment reported COPA of EUR 171 million. This represents a year-on-year decrease of EUR 20 million, resulting from a decline in advertising revenue and lower gains from the disposal that I just mentioned.

Studio TF1 generated COPA of EUR 20 million, a strong increase of EUR 13 million, notably thanks to the JPG's contribution. Studio TF1 margin was up 5.7 points year-on-year, reaching 9.4%. Regarding the income statement on Page 13, I have already commented on consolidated revenue and COPA.

Looking further down, operating profit totaled EUR 175 million, broadly stable year-on-year. That figure includes EUR 9 million in amortization charges relating to intangible assets arising from the JPG acquisition and EUR 7 million in nonrecurring expenses related to the group's digital acceleration plan.

Net profit attributable to the group, excluding exceptional tax surcharge, was EUR 138 million, slightly down EUR 8 million. Compared with last year, net profit includes lower gains from disposals and a decrease in financial income due to lower interest rates.

Income tax expense for the first 9 months included an exceptional contribution levied on French companies under the 2025 finance bill. This exceptional EUR 15 million tax surcharge for the period comprises EUR 10 million based on 2024 taxable profits fully recognized in Q1, as you remember.

Moving on Page 14 on the net cash position. At September 2025, the TF1 Group had a solid financial position with net cash of EUR 465 million, up EUR 101 million year-on-year. Our solid balance sheet is an asset to navigate the volatile environment and keep rolling out our digital road map.

Note that the EUR 238 million in CapEx compared to EUR 183 million last year, but it includes EUR 27 million proceeds from Ushuaïa. The difference between EUR 238 million and EUR 210 million of 2024 reflects future deliveries for Studio TF1.

The EUR 41 million decrease compared with end December 2024 mostly reflects free cash flow after working cap of EUR 84 million and the dividend payment by TF1 of EUR 127 million in April. Before turning to our outlook, let me wrap up the key takeaways of our first 9 months.

In a very uncertain and unstable environment, the group successfully tackled advertising market headwinds, thus mitigating the impact on COPA. First, we managed to gain market share across the board in a more challenging market than expected, underlying the competitiveness of our ad sales.

Digital grew by 41%, significantly ahead of the market, while the decline in linear was limited to 6% compared with an estimated low double-digit percentage market decline. Second, we keep a tight control on cost, as illustrated by the EUR 9 million decrease in programming costs and the savings achieved in operational costs.

And on the other hand, we safeguard the resources required to fuel the second phase of our strategy. Lastly, we actively manage our portfolio, both on media and on studio, as illustrated by the disposals of My Little Paris and PlayTwo and by the successful integration of JPG.

Let's now have a look at our targets for the rest of the year. First, in terms of lineup, we will maintain in Q4 the best offer of free family-oriented and serialized entertainment as illustrated by the return of Star Academy, a 360-degree experience that will be broadcast across TF1, TFX and TF1+ alongside a social media presence that will drive strong engagement, particularly among younger targets.

Q4 highlights also include the new premium French drama, Monmartre as well as 6 matches involving France National Football and Rugby teams. About Rugby, as you know, TF1 has secured the rights to broadcast the 2027 Rugby World Cup and the 2026 and 2028 Nations Championship as well as the 2027 and 2029 Autumn Nations Series.

The deal reinforces TF1 Group's long-term strategy to make the most popular sporting events available to French viewers on free-to-air television. As you know, our objective is to sustainably finance this premium lineup going forward.

After launching TF1+ in January 2024 and establishing it as a premium alternative to YouTube, the group is in the second phase of its strategic plan, which involves 3 pillars. The first pillar of this new phase is micro payment.

As mentioned earlier, this feature, which was launched in September 2025, previews has been rapidly adopted by TF1+ users. New features, ad-free content and an exclusive live channel for Star Academy were launched in October.

And again, if you do the math, the additional revenue potential of this initiative is significant if a portion of our monthly streamers transact several times a month. The second pillar is the extension of the group's distribution strategy illustrated by a landmark deal signed with Netflix.

Starting in the summer 2026, we will show all 5 of our linear channel on Netflix as well as more than 30,000 hours of content available on demand. This unprecedented alliance will unlock additional reach for TF1 as a significant portion of Netflix subscribers consider Netflix as their primary source of TV entertainment.

In addition, TF1 will benefit from Netflix's unrivaled expertise in content recommendation. Finally, the third pillar of this new strategic phase is the expansion of TF1+ distribution among French speakers worldwide.

TF1+ has been available in Belgium, Luxembourg and Switzerland since 2024 and in 22 French-speaking African countries since June 2025. Moving on Page 18. Capitalizing on its successful strategy, the group confirms the following 2025 targets: strong double-digit revenue growth in digital, aiming for a growing dividend policy in the coming years.

And the current phase of political and fiscal instability in France is undermining the confidence of economic actors and is resulting in a more challenging advertising market than expected, particularly in linear.

The general trend seems to be the same across Europe, but the magnitude of the decline in October, low double-digit percentage appears to be specific to France. First indications for November are also below expectations and visibility remains limited until the end of the year.

At this stage, we conservatively assume that it will be the same in December. In this context, the group adjusts its 2025 margin from activities target from broadly stable compared to 2025 to between 10.5% and 11.5%, a solid margin level.

Many thanks for your attention, and now I'm ready for your questions.

[Operator Instructions]

We have a written question on the platform here. So it is about the organic growth of Studio TF1 in the third quarter of the year. So the perimeter effect is EUR 11 million over the 9 months. And on a like-for-like basis, the growth is 6%.

[Operator Instructions] At the moment, there are no questions from the phone. I'll turn the call back to you for any closing remarks.

Thank you very much. So to summarize these results, what you need to bear in mind is that we managed to gain market share across the board. We have a tight control on cost and active portfolio management, which led us to gain market share both in linear and in digital.

So in this turbulent market, this is why we adjust the margin between 10.5% and 11% which is still a strong level. Thank you very much.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.