PARIS, July 29 France's second-biggest private
broadcaster, M6, saw a sharp decline in advertising
revenue in the second quarter because of weak demand and the
fact it did not show the soccer World Cup, unlike larger
M6, which also owns channels such as W9 and 6ter, said total
advertising revenue fell 5.4 percent in the quarter to 210.3
million euros ($282.24 million). This was worse than the 2
percent decline seen in the first quarter of the year, and worse
than the 5 percent decrease predicted by UBS analysts.
The World Cup helped TF1, France's leading private
broadcaster, to limit the damage that a weak economy wreaked on
ad revenue, which declined 2.2 percent in the second
Second-quarter sales fell 0.2 percent to 322.2 million
euros, M6 said in a statement on Tuesday.
The outlook for advertising in France does not seem
promising as unemployment remains persistently high and growth
is stagnant. Market research group Zenith Optimedia, a unit of
ad agency Publicis predicts a 1 percent drop in
advertising spending in France this year.
"The group remains prudent given the lack of visibility in
the advertising market in the five last months of the year,"
said M6, which had warned after first-quarter results that its
profitability would come under pressure if the ad market
M6 is cutting programming costs and overheads to cope with
lower sales. Nevertheless, its core operating profit fell 13.4
percent to 112.3 million euros in the first half, pulling
margins down to 17.7 percent from 20.4 percent a year earlier.
(1 US dollar = 0.7451 euro)
(Reporting by Gwenaelle Barzic; Writing by Leila Abboud;
Editing by James Regan)