Financial Review - Bouygues

Odyssée, Histoire and Ushuaïa TV, thelatter launched in March 2005.In 2004, TF1 also acquired an 11.4%stake in Pink TV, France's first gaytheme channel, launched in October2004. In February 2005, in partnershipwith AB, it finalised the acquisition of80% of TMC from Pathé.Digital Terrestrial Television (DTT)LCI, TF6, Eurosport France and TPSStar are four of the channels chosenby the CSA (France's audiovisualwatchdog) to supplement the offer ofDTT pay channels. TV Breizh hasapplied for a free unscrambled DTTchannel in the latest round of bidding.A decision is expected in early June2005.AdvertisingWith the economy picking up slightly,net advertising revenue rose by 6.6%for the core channel and 25.5% fortheme channels. However, advertisersstill tend to take a wait-and-see,opportunistic and short-term attitude.TF1 consolidated its leading positionin 2004 with a 54.8% share of the TVadvertising market, up 0.1 points on2003.The opening of the advertising marketto the press sector on 1 January 2004has benefited TF1: 70% of pressadvertisers present on TV have chosenthe channel for their campaigns,spending €41.4m.Production companiesTF1 has developed a number of productioncompanies to provide itschannels with programmes (TF1 FilmProduction, Glem, TF1 PublicitéProduction, Alma, TAP, Yagan andStudios 107), covering all types of output,from films and entertainment toshort features, documentaries andfiction.TF1 Films Production coproduced 23feature films in 2004, nine of whichattracted over 1 million cinema-goers(Un long dimanche de fiançailles,Podium, L’Enquête Corse, DeuxFrères, etc.). TF1 Films Productionreported a 12.2% rise in sales to€14.7m.Content and spin-offsTF1 Entreprises operated in a difficultbusiness environment in 2004: themarket for board games and CDsshrank, Ushuaïa brand productsfaced stiffer competition and the StarAcademy brand reached maturity.Teleshopping, a distance shoppingoperator, reported a 13.2% jump insales on all media (broadcasts, catalogueand internet) to €82.6m. Theoperating margin increased from 6%in 2003 to 11.5% as a result of sharplyrising sales and lower sub-contractingcosts.Sales at e-TF1 rose by 83.8% to€47.8m, boosted by a 42% increase insite users, the spread of mobile multimedia(i-mode, WAP, Gallery, etc.) andthe success of the programme A prendreou à laisser.International channelsEurosport InternationalEurosport, broadcast in 19 languages,was received in 98 million homes in 54countries at end-2004, including 51.5million as a pay channel, an increaseof 7.3% on end-December 2003. Itis watched by an aggregate dailyaudience of 22.7 million viewers, anincrease of 8% over the same period.Eurosport 2, launched on 10 January2005, will gradually replace Eurosportnewsin Europe.A genuine complement to Eurosport,its schedule targets younger viewersand combines news, magazines and1,800 hours of sporting events peryear, including 450 hours of exclusivelive coverage.Eurosport International reported a1.7% rise in sales in 2004 to €239.2m.SportitaliaThe sports channel Sportitalia waslaunched in Italy on 6 February 2004.A free-to-air channel broadcast on theanalogue network, it is watched byover 9 million viewers a week and hassuccessfully established itself in Italy'saudiovisual landscape.26