Financial situation of local terrestrial TV channels in France in 2022
Summary
1. A predominantly private shareholder base, with consolidation in 2021 and 2022 driven by the regional daily press and Altice
At December 31, 2022, 55 private local channels were authorized for terrestrial broadcasting (56 in 2021), including 42 in mainland France and 13 in overseas France (14 in 2021).
The majority of local channels are privately owned, both in mainland France (88% of services) and overseas France (84% of services). However, the structure and dynamics of this shareholding vary greatly from one channel to another.
In mainland France, the consolidation trend initiated by audiovisuel and daily and regional press groups has continued, with 12 and 10 channels respectively controlled by this type of player by the end of 2022. The year 2021 was marked by the takeover of the four viaOccitanie channels by Groupe La Dépêche du Midi following the receivership of ViàGroupe, and the acquisition of six new local channels by Altice (BFM DICI, BFM Nice - Côte d'Azur, BFM Toulon, BFM Marseille, BFM Alsace and BFM Normandie). This trend continued in 2022, with Altice taking control of two new services: BFM Grand Lille and BFM Grand Littoral (previously owned by the Rossel audiovisuel group).
This trend is less pronounced overseas France, where the proportion of channels edited by associations or with a majority public shareholding is higher.
However, the financial fragility from which private channels in the French overseas territories have suffered for many years, accentuated by the health crisis, is fuelling the consolidation of players. This trend is illustrated by the Cirano group's takeover of Antenne Réunion in 2021.
2. Rising revenues, but still fragile economic balances
By 2022, cumulative operating revenues for the 43 local terrestrial channels analyzed in this edition will have reached €78.5m, including €33.1m in advertising revenues. The market for local TV channels in mainland and overseas France represents just 0.9% of TV advertising revenues in 2022 (€3.485 billion - source: Irep).
The 37 in mainland France local channels studied account for 67% of revenues (versus 59% in 2021 for 38 channels analyzed, and 56% in 2020), and the 6 overseas channels for 33% (versus 41% in 2021 for 10 channels analyzed, and 44% in 2020).
On a like-for-like basis of 39 channels between 2021 and 2022, operating income was €77.8m in 2022 and €71.6m in 2021, up 9% year-on-year.
The year 2022 was marked by a general slowdown in the rise in advertising revenues, which in 2021 were at a higher level than in the pre-sanitary crisis years. On a like-for-like basis of 28 channels over 3 years (2020, 2021 and 2022), the increase was only +7% in 2022 compared with 2021 (to €26.5m in 2022), versus +35% in 2021 compared with 2020 (to €24.7m) (on a like-for-like basis of 39 channels between 2022 and 2021, however, the increase was still +15% (€31.8m in advertising revenues in 2022 versus €27.6m in 2021).
In 2021, these private revenues were supplemented by exceptional grants to certain local TV channels particularly affected by the health crisis.
In 2022, on a like-for-like basis over 3 years (2020, 2021 and 2022), i.e. for 28 comparable channels that detailed their resources via the Arcom complementary questionnaire, public resources represented 44% of revenues in 2022 (versus 45% in 2021 and 53% in 2020) and private resources 56% (versus 55% in 2021 and 47% in 2020).
Despite the upturn in the advertising market in 2021 and 2022, cumulative operating income for the 43 local terrestrial channels studied remained negative in 2022, at -8.4 M€, but improved on 2021 (-16.0 M€, on a like-for-like basis).
After increasing by 7.8% in 2021 compared with 2020, total expenses fell by -1.5%.
While most channels saw an increase in expenses in 2021, due to the resumption of post-health-crisis activity and the end of special schemes (e.g. partial activity), consolidation movements significantly lightened the cost structure of the channels concerned in 2022.
All in all, however, of the 43 local channels analyzed in this 2022 edition, only 14, or nearly a third, posted positive operating income (compared with 41.7% in 2021, or 20 of the 48 channels studied that year).
Generally speaking :
- channels with public shareholdings benefit from significantly higher-than-average resources;
- around half of PQR-owned channels will report profits for 2022, and see their operating income increase;
- the other channels with a majority private shareholder base are performing unevenly.
Some private channels not backed by a group are seeing an increase in earnings thanks to the diversification of their activities (technical services, production, video capture, etc.). In overseas France, with the exception of one channel showing a positive operating result in 2022, the majority of local channels are reporting financial difficulties, but are also trying to diversify their activities.
Financial situation of local terrestrial TV channels in France in 2022
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