TF1 cuts cost – bad news for Metro?

French commercial broadcaster TF1 expects a substantial drop in advertising revenues in 2009 and wants to cut cost with €60m this year. Sales will decline with 9% and profits with more than 40%. In 2008 the company already cut costs with €30m. (Reuters)

The move is not very good news for Metro International as TF1 holds a 34.5% share in the French Metro operation. The only ‘good’ news is that the Metro shares are not very valuable so selling won’t do much good for TF1.

The weird thing, however, that the ban on advertising on public TV apparently did not do the commercial broadcaster much good (see previous post). Going down in a recession with less competition is really a bad sign.

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