Television Franchise

Good evening, everyone, and thank you for joining us for our H1 result presentation. I'm Rodolphe Belmer, CEO of the group, and along with Mr. Pierre-Alain Gérard, 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 number three. 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 regulatory backdrop. Third, the level of COPPA, which stood at 77 million euros 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 strategies. in an environment that remains volatile and offers limited visibility, we maintain our 2026 targets. Let's go now into more details in the business review, starting with our media and studio segments, starting with media on page six of the document. In H1, the group maintained its linear leadership across commercial targets. and the TF1 channel or 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 Les Enfoirés, sports with the Six Nations tournaments, and premium drama with Les Détrancies. News also continued to perform strongly. The 1pm and 8pm buzzings maintained a significant gap versus their 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 targets. 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 Plus continued to show strong momentum a bit more than two years only after its inception. The platform attracted 42 million streamers per month on average in F1, 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 25th, 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's top 10 titles. 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 mid-term target of 6 minutes. From a monetization standpoint, CPM stood at 12.5 euros. The platform's attractiveness to both streamers and advertisers translated into a growth of TF1 Plus advertising revenues of almost 20% year-on-year, reaching 109 million euros. The group overall digital revenue, which also includes advertising revenues from TF1 Info and Addressable TV, along with revenues from subscriptions of our TF1 Plus premium offer service, and micropayments amounted to €134 million at 17% year-on-year. Micropayments 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 roll-out 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 recently, on WIC Telecom 1. Studio TF1 now, H8, revenue amounted to 124 million euros 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 Television. It also co-shooted its international collaborations, including The Teacher for Channel 5, while continuing to diversify its crime picks with the streaming platforms with programs such as Day One for Prime Video. 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 Jarre. Thank you, Rodolphe.

Let's now turn to financials in more details. First, revenue on page 10. Group revenue amounted to 993 million euros in the first half of 2026, down 6% like for like, and had constant effects, ahead of market expectations. In the media segment, advertising revenue was 714 million euros, 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 primetime inventory, highlighting its unrivaled standing among advertisers. Regarding streaming, as mentioned by Rodolphe, TF1 Plus advertising revenue rose by almost 20% to 109 million euros in the first half, and the overall digital revenue amounted to 134 million euros. Non-advertising media revenue was 156 million euros, 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-Doh. At Studio TF1, revenue amounted to 124 million euros, 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. Current operating profit from activities amounted to 77 million euros 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, COPAS stood at 81 million euros. The 44 million euro decrease year-on-year mainly reflects the decline in high-margin linear advertising revenue.

Programming costs