Television Francaise 1 SA
PAR:TFI
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Television Francaise 1 SA
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Ladies and gentlemen, good afternoon, and welcome to the TF1 conference call. At this time, I would like to turn the call over to Philippe Denery, CFO. Sir, please go ahead.
Well, thank you. Good evening, ladies and gentlemen. Thank you for joining us. I hope that you are all in good health. In spite of the situation, we have decided to maintain our quarterly publication and to give the market information related to our performance during the first 3 months of the year and some indications on the impact of the COVID-19, at date on our business.In order to achieve this quarterly publication, TF1 teams have been working on digital platform and from home for most of them, but applying method, rules, compliance in respect of usual process. Auditors are processed accordingly. I just want to thank all of them for giving me the capacity to process with this publication in due time and as I do traditionally.Health and safety of TF1 group and partners' staff remain our #1 priority. Moreover, solidarity with hospitals and Chinese are also, of course, as a media our main concern. In this respect, the TF1 group is acting to give transparent information and be part of the sensitization of the population through offering some of its advertising space free of charge to those who are on the frontline against the pandemic.Now let's turn to the main key points and the summary of our results for the first quarter of '20, then I will be happy to take questions. Q1 '20 has been divided into 2 different periods: January, February, on one side, with no impact of the COVID-19 crisis; and March, on the other side, with the first impact of this unprecedented crisis impacting all our activities. As a consequence, our results for the first quarter of '20 are down year-on-year with total revenue standing at EUR 494 million, down by 11% year-on-year. If you exclude the effect of changes in structure, mainly due to the deconsolidation of Téléshopping from Q2 '19, the total revenue is down by 8.5%. This performance is a result of a drop of advertising revenue, both in the Broadcasting and in the Unify segments.We had estimated the impact of the COVID-19 for the last 15 days of March on the advertising revenue for the group between EUR 35 million to EUR 40 million. In response to the COVID-19 pandemic, the TF1 group has proven its strong reactivity by adapting its programming grid from the beginning of March, while cutting the costs to limit the impact on the margin. Consequently, the current operating profit decrease for Q1 '20 is capped at minus EUR 21 million, of which around EUR 13 million are estimated to be due directly to the impact of the crisis.As a summary, I would like to point out the results of our main 3 activities for the first quarter as follow. First point, TF1 group is committed on an unprecedented scale to fulfill its mission to inform and entertain and to meet the legitimate expectations of TV viewers. The group has maintained high audience shares on commercial targets on Q1 '20, thanks to both a strong lineup and the beginning of the -- during the beginning of the quarter and to the adaptation of the grid in the context of lockdown with less and less live entertainment programs with public.Second point, regarding the Broadcasting segment, January and February were in line with our expectations. From March, the advertisers have had to postpone or cancel a large number of advertising campaigns, which explains the decrease on advertising revenues by EUR 34 million, minus 9% year-on-year. However, the margin of the Broadcasting segment had reached 11.2% for the first quarter, down by only 0.7 year-on-year, thanks to the savings made on the programming costs and other costs.Third, Newen activity decrease is due to, first, the early delivery in Q4 '19 of some ordered programs; and second, due to suspension from mid-March of the shooting of programs because of the lockdown.Fourth, regarding Unify activity, we have observed similar trends with the Broadcasting segment regarding digital advertising, programmatic and business solutions through numerous cancellation of ad campaigns in March.Let's now get into the details of our activities. I will start commenting on the performance of the Broadcasting segment. Revenues are down by EUR 30 million year-on-year with a decrease of the operating profit capped at EUR 6 million. Regarding the Broadcasting revenues, the trend reflects a 9% decrease in the advertising revenue, EUR 34 million year-on-year. In March, if the first cancellation of advertising campaigns were contained to tourism, the sharp acceleration in cancellation we have observed since mid-March has been extended across all sectors. The other revenues within the Broadcasting segment are up by EUR 4 million, thanks to a good performance of interactivity on key programs like The Voice.Second, regarding the programming costs, the group has demonstrated strong reactivity in its capacity to monitor closely its investment in programs in order to cope with the advertising market drop due to the crisis. In this respect, the group has succeeded in making EUR 23 million of savings during the first quarter. Current operating profit for this segment stands at EUR 44 million, down by EUR 6 million, as I said, year-on-year.Moving to the Studios & Entertainment segment, the revenues are down by EUR 25 million year-on-year, mainly due to the deconsolidation of our own shopping business divested from Q2 '19. Revenues at Newen in Q1 '20 were impacted by some early deliveries in Q4 '19, as expected, and the inevitable suspension of shooting starting mid-March from the lockdown period. Nevertheless, as the book of order remains stable with more than 1,500 hours, we are confident that a large majority of the deliveries will be only postponed.Regarding TF1 Studio, revenues were also down, in line with the structural decline in physical video sales. Moreover, the cancellation of culture events like concert, shows scheduled to take place during the lockdown period has started to impact the TF1 Entertainment activity. This segment posted a current operating profit of EUR 2 million, down by EUR 11 million year-on-year, linked with the decrease in the business activity and the accounting of overdue invoices last year for a few millions.Let's now comment on Unify. Among the various activities of this segment, digital advertising, programmatic and business solutions both in France and abroad have suffered from the crisis in Q1 '20 with advertisers canceling their campaigns. At the same time, the 2 verticals, food with Marmiton and health with Doctissimo, have registered a high rise in the audiences of their websites, especially during the lockdown period. By contrast, our social e-commerce activities, subscription box sales have been less affected by the crisis.Unify revenues for the first quarter of '20 totaled EUR 35.5 million. Current operating profit amounted to minus EUR 4 million, still impacted by some costs linked with the reorganization still ongoing during this quarter. Just a quick word on the net profit. The net result attributable to the group stands at EUR 24 million for the first quarter of '20, including the first investment in SALTO.Let's now comment on the cash situation. Excluding lease obligation, the TF1 group had a net debt of EUR 28 million at end of March '20 compared with net debt at end of '19 of EUR 126 million. In the context of low visibility, the TF1 group has a sound financial position and access to available bilateral credit facilities in order to overcome the crisis. Well, let's conclude with the outlook. Q1 '20 results highlight the first impact of the COVID-19 crisis, mainly related to the last 15 days of March. Q2 '20 will be even more impacted because of, first, the extension of the lockdown period; second, the resumption of activities, which will probably be slow and gradual; and third, our capacity to adjust our variable costs that cannot be sustained in the same proportions over the several weeks.So I'm sure that you understand that we are not able to give more precise elements on the impacts of the crisis for the months to come. That is the reason why I remind you that we have withdrawn our guidance for '20 and suspended those for '21.Well, that concludes my review of TF1 group results for the first quarter '20. Thank you again for having joined us. Should you have any questions, please do not hesitate to ask. Finally, I would remind you that a recording of this conference call will be available. You will find the connection details on our website.
[Operator Instructions] We have one first question from Conor O'Shea from Kepler Cheuvreux.
Three questions, Philippe. First question, just on the advertising for Q2 so far. I think if you are saying that the EUR 35 million to EUR 40 million decrease in Q1 was all in the last 2 weeks of March, I think on an average weekly basis, I think that implies a decline of maybe 60% or something like that. Obviously -- M6 said minus 50% for Q2 this morning. Is that a reasonable starting point for Q2 at this stage? That's the first question. Second question, on the programming cost, obviously, you made a huge effort in Q1. And I think you remarked that it would be difficult to make the same cost savings in the same proportion going forward. But I mean is it fair to say that whatever savings you make in the first half of the year will not necessarily be spent in the second half of the year, that even if the market gets better progressively, you will keep those savings and, therefore, the full year amount will be considerably lower than the average programming cost guidance?And then the final question, just on SALTO. I wonder if you could give us an idea of how much the investment was in Q1. And I think it's been -- launch has been delayed. What are the latest sort of dates that you have in mind for the consumer launch?
Well, thank you for your question. On the first question, I would say that the trend we have in April is in line with what we had during the last 2 weeks of March. So in terms of range, you are in the right range in terms of what we had in March for the last 2 weeks. April, same trend. It's too early to give you May or June because of the very, very low visibility. And of course, it has never been as low as it is today, which makes sense, of course. But really -- so I'm not in a position to give you any kind of clear figure of what could be the trend in Q2 for the advertising market. But the trend in April is the same as during the last 2 weeks of March, and probably beginning of May is the same trend, but it's too early to give more for the whole quarter. Now concerning programming costs, as you've seen, we've made EUR 23 million out of EUR 35 million drop in the revenues, which gives a ratio of 66% impact we have absorbed through our savings on the grid. If you take the margin, which is minus 6%, that keeps even more savings through other costs we had partly to achieve. The 66% ratio is not sustainable during several weeks or months. Nevertheless, you have seen that we have achieved, as a benchmark, minus 10% on the programming cost. That's the right benchmark, I would say, and there is no reason for us not to go on with all the efforts and process which has been -- which has started beginning of March in order to go as far as possible in order to adapt our costs to the drop in the top line.So as we have said that we will not give you any guidance because of the lack of visibility for '20. I can't give you more precise information. But I would say that you have the range, and probably those 66% quotation absorption of is a high level. But we should be in a position to go on with significant savings as long as, first, the lockdown period as well as the economy has not recovered. Now concerning your last question. It is on the global P&L you will find in the accounting and the annex. The amount of SALTO impact are not -- are a result by EUR 0.8 million, which is 1/3 of the contribution. It's in the accounting, and that's what we have. It's the first quarter. SALTO said that they have -- they intend to postpone to autumn instead of September, which was the previous timing. Well, so before the end of the year, clearly, they have announced that they will launch their offer. And of course, the nature and the cost will be -- will increase quarter-after-quarter in order to be in a position to launch the offer in due time.
We have another question from Julien Roch from Barclays.
First question is on the drop-through. You said that 66% was not sustainable, but can you give us an indication for the full year? M6 gave us an answer, it's 50% for them. So surely, you have to do as well as M6.And my second question is on the audiovisual reform. Clearly, it's been postponed. It's not going to be a priority with so many things to do linked to COVID for the government. But is there any part of the reform that don't need to go through Parliament, can be taken by decree? And do you expect those decree to come in a short period of time?
Yes. Well, on your first question, giving a ratio on the figure, I don't know, because I don't know what will be the drop in the total revenues during the Q2. Doesn't make so much sense to me. Well, I'm just talking on behalf of TF1. And as we see, the thing is, why should I give you a ratio? I'll just give you a ratio on what has been achieved, not what will be achieved as long as I don't know what will be the advertising market in Q2. What I'm saying is that, yes, we will keep a high level of reactivity. And that globally, there is a benchmark, which is up in 10% in our programming quarter in Q1. This is a good benchmark in any case. Of course, those 10% has been achieved in a very short period of time. That means that we could, in terms of benchmark, grow a bit further. Nevertheless, it's very difficult because, first of all, we will keep this effort and this process as long as the advertising market will be low. But we should be, if necessary, to be in a capacity to reinvest a bit if we have to because of the trend, if the trend of the advertising market is much better at the end of the year.So that is something on which we need as well, some flexibility. Our concern is to be more flexible and to follow trends on the top line. So in Q2, we should achieve some additional savings on the programming costs. It will depend on what will be the market at the end. We started early from March. So there are EUR 23 million which have already -- which have been achieved already and will be kept for the year. That is something on which I can tell you that those savings will be kept on for the year. Now additional one should be as well compensating drawdown in revenues and especially during the following 5, 6 months, meaning the next 3 months and the 2 summer months, which are traditionally during when we invest a bit less. Now concerning the regulation, yes, there are 2 points in the regulation. We are acting and supporting ideas in order to be part of the recovery and to see how, for a specific and limited period, there could be some specific measures to help the sectors and to help the recovery through consumption and through advertising. So there could be some fiscal measures which could be taken by the government. We are doing the classical loading, if I may say, in order to explain why this could be part of the recovery, if we can have some fiscal impact for advertisers in order to be in a position to reinvest during the second part of the year. Now on the other, that is something which is rather important for us for the limited period of the second half of the year. Now concerning the other part of the regulation, yes, you are right. There are a certain number of part of the regulation, which could be taken by decree. You remember that the government has decided to apply in the past. They have decided beginning of this year or before. They were saying that they want to take the law and decree at the same time. And probably, if they postpone the decision to pass a law to the Parliament because not being a priority, they can and we think that they could take some decision by decree in the following months or end of the year, beginning of next year. So that's remained -- remain on the agenda. But of course, if the law is not a priority, decree could be important for the whole sector. And just in such a crisis, the main concern we all have for the sectors is to be balanced and to have balanced situation, especially after the crisis between all actors, including digital platform and GAFAN. So that is something which even -- is even more important after the crisis than before.
But just a follow-up, which of the decree do you think are priorities, could be done early rather than late?
Well, there are decrees concerning the production and some obligation. Of course, there are decision decree linked with the cinema. I can't go in details, but of course, the situation and the global framework, there could be some decision taken or -- by the government. The whole sector is impacted by the crisis. And of course, the review of some of those obligations concerning both production and obligation and supporting the sector through those who benefit from the crisis makes sense.
We have another question from Annick Maas from Exane BNP Paribas.
So I have a few questions. The first one is, could you maybe tell us up to which week you saw a week-on-week deterioration of advertising trends? And the second one is, which advertisers actually are up year-on-year in March and April? Thirdly, could you just explain us how it works with the cash regarding the year 2020? How -- what have you paid? What will be paid next year? And then do you have any indication from which moment onwards production operations could start again?
Yes. Well, the first question was from when we had dropped, I would say that we had a first slowdown in the demand during the first 15 days of March, 10 days of March. But it's very, very clear in all the curve we are following. Then we started to have some cancellation from tourism travel from 12th of March, very precise, that's what we've seen, and extend it to other sectors a few days after, 15 March, 17 March and then onwards. So that's precisely when we have those first impact. So clearly, all sectors from 15th of March. I can't give you the rest -- yes?
Yes, I know. I guess my question was more -- so you had a deterioration in March, then you had a further deterioration at the start of April. And at some point, I assume it has stopped, then trend looks slightly better. So that's -- was it mid-April that trend started to look slightly less worse? Or was it at the end of April?
Well, the business is based on, as you know, we opened inventories available to advertisers in advance. And we have opened our inventories for April -- sorry, for May and June on the 29th -- 27th of March, meaning that we have, of course, not the same situation because there were less cancellations on May and June because inventories were opened after the lockdown and after the beginning of the crisis. Now in terms of April, I would say that cancellation have been the same trend. April, as it has been during the last 2 weeks of March, same trend, same proportion. On May and June, we are just acting differently because we have a slowdown of the demand, of course. There is no specific cancellation on inventories which were not booked, but we have, at the end, a trend which remain, as compared to last year, approximately for the moment beginning of May and the date more or less the same, at least for the beginning of May. Now the visibility for end of May and June is already too early. And of course, as you know, the end of the lockdown will be mid of May. So we'll see the business could change more or less quickly in terms of trend or, I think, a different trend from then. Now concerning your second question in terms of sectors, we had some sectors which were highly impacted and which still are very impacted. Of course, tourism/hospitality, then the culture and leisure, car industries, those 3 sectors have been the most -- or those which have been canceled or where the demand is significantly lower, banking insurance as well in a certain way. Now less affected, of course, is the health care sector as well as [ house ] cleaning and the telecom, which are less impacted and which are still investing. But of course, everything being the same, all sectors are -- have invested less than last year. But those are the main trends in terms of sectors I can give you. In terms of cash, it's difficult to answer because, again, the visibility at the end of the year is low. And there are plenty of scenario depending on what will be the recovery, Q4 -- Q3, Q4, when it will start. We have the capacity, as you know, with our financial structure and with more than EUR 1 billion credit line facilities without any covenant, of course, to get the cash necessary, if necessary. Definitely, we will have some impact on the cash at the end of the year. And I would say that is not -- if we have this crisis for a few months in terms of financial structure, as you know, it has been some time a discussion I had with some of you because of our low gearing and no debt. But that is beneficial today because we have no debt, EUR 28 million net debt at the end of March. I remind you that in the net debt, we have around EUR 100 million options, which are not directly cash and which will be exercised not before '22. So basically, in terms of cash in hand, it's positive. Now definitely, that will impact the cash, and we will have a negative and the strong impact on the cash at the end of the year. And we are dealing with this in order to see how to manage the best way the drop in the cash we will have. And because of our business model, that will impact our cash more in Q3, end of Q2, Q3 and Q4. We are -- what we invoiced today or we have not invoiced in April will be -- will have an impact 2 months later in terms of cash. So there is not any impact in cash in Q1 of the COVID-19. That will start in Q2 and more significant, Q3. Now to the last question was -- sorry, I don't remember.
Yes. So if you have a visibility from which moment onwards you can start producing again?
On the production, we expect to start as soon as possible, especially for our daily soap. As Newen is concerned, there is Les 12 coups de midi on one side and Demain nous appartien on the other side. Difficult to answer because, of course, that will depend on what and how measure -- what kind of measure will be taken, hopefully, end of May. That will depend as well from what we understand from the government, which part of France. We are in the -- mainly in the east south of France. So we will see what kind of measures will be taken locally. And hopefully, this part of France will be -- we'll have more flexibility in terms of measure.But of course, the shooting of program is very important and has to be -- we have already started. Newen has already started to see how to work in a normal -- I will say, terms and conditions which are linked with what measures should be taken and to secure safety of people on the shooting side. So we have been working on it now for the last couple of weeks, and we are still working on it in order to adapt our process to the situation and to be in the best capacity to resume the business as soon as possible. We are already working on it very hard, and especially Gilles and team, in order to be in the position to resume as soon as possible, hopefully, end of May. I can't answer because it's -- it doesn't depend on TF1 only.
Our next question comes from Adrien de Saint Hilaire from Bank of America.
A few questions on my side, Philippe. If you can hear me okay?
Yes.
So first of all, you talked about the savings on the Broadcasting side. But can you help us understand how the profit from moving at the Studio business and at the Unify business right now, so what is the -- if you can give us an estimate of the drop-through on the lost revenues for these businesses, that would be very helpful.And then given the ongoing downturn, I know in the past, you were not really in favor of a potential tie-up with another broadcaster in Europe. But do you think that given the context, your thinking is changing or might change?
Well, on your first question, I would say that the Studio & Entertainment Q1 performance in terms of EBIT is impacted by 3 main reasons. First of all, the profitability of the Studio & Entertainment has been quite high in Q4. And we've said at that time that there will be some impact on Q1 '20 just because of the situation. We have delivered more program than we thought by the end of '19 and what has been achieved. And profit, which has been taken in advance, we don't find them afterwards. So basically, there is a part of the situation and the profitability, which has already been taken in Q4. And I'll remind you that the profitability of Q4 of this specific segment has been significantly high in Q4. And as said at that time that we can't rely on such a profitability -- quarterly profitability just because we have taken some advance in terms of delivery. Now the second reason of the impact is linked with a very specific reason. The CNC has decided, end of '18, that they will support less than in the past the daily soap production. And so the contribution of the CNC is lower from '19 and '20. And that has impacted a few million, limited, probably around EUR 2 million, the profitability of this segment. We have been in a position in '19 to compensate through better productivity and improvement of process. This drop in the support from the CNC, we will be in a position to review and to do the sign, but on a longer time. So during a while, we will be impacted on the profitability by this decision of the CNC partly during the whole year. Q1, you've seen it. Q2 will be less significant, hopefully. And step by step, we will compensate this in a way or another through to better process and productivity on our Danish soap. Now the third reason is linked with the situation, situation being COVID-19. We have not delivered during 15 days or 2 weeks or less than 2 weeks, daily soap, with some profitability on our activity in our business. The same for music, the same for the -- all the music activity, sorry, and the basis of comparison was rather high. Last year, we had a specific show with Gims at this period of time during Q1. So that's also one of the reasons linked with mainly the impact of the prices on specific activities on this segment, which has an impact on the profitability as well. Now the last thing you have to take into account is last year, we had accounting in this segment an amount of overdue invoices because of our information system, which has changed, and we have reviewed all our data that we have accounting around 3 -- more than 3 million, which are -- which were accounting -- which were accounted in this specific segment, and we don't have, of course, this year. So that explain altogether this drop of the profitability of this specific segment. Concerning Unify, in terms of profitability, 2 main reasons: a drop, which has been -- has significant in proportion, of course, in programmatic digital activities and, of course, business solution. Business solution is directly linked to its advertisers as well. And those services has dropped from March. And of course, we have fixed costs at least to react, it takes a bit longer time than the drop on the digital. Now we have specific reorganization cost, which has been still -- which has still impacted a bit longer than expected, meaning Q1, which has been taken into account and we counted in Q1. Now concerning your second question. Well, for the moment, we don't see no reason specific to change our position. The COVID-19 has not significant impact on our business in terms of changing the strategy, M&A strategy with other broadcasters. So no, we have no reason to -- we don't see any reason today at date to change the strategic view. But as you know, on a regular basis, we make some strategic review. So we'll see for the next strategic review, but no specific reason.
Understood. And Philippe, just to come back, maybe looking forward for the rest of the year. So we assume that the production and sale of the divisional rights in Q2 is running probably close to 0. Should we assume that all of these lost revenues hit the bottom line? Or is there any flexibility on the cost base for that business?
There are flexibilities. Now there are flexibilities, but decision planning can, as you probably can understand on those specific segments, takes a bit longer time that just -- I mean not just, but adjusting a program in such a crisis which -- and because of the nature of this -- and because of what has been achieved during the last 3, 4 years in terms of flexibility, because I don't think that we would be -- we would have been in such a situation in terms of flexibility 6, 7 years ago. So yes, we review all the process, and teams are working differently today than they used to work a few years ago. And that is the result of what we have done during the last few years in order to work closely on the reaction and the reactivity and some flexibility linked with the top line. So this process, those process, the way to work differently is a bit different, whether in Unify, and it's not the same, of course, size of business and the same in production by nature. But what is very positive in the production sector is that the book of order remain at the same level. There has not been any cancellation. Of course, a daily soap, which has not been produced, everything being the same, will have never been produced. Nevertheless, it's limited to these specific activities. There are shows which have been produced like health magazine and so on, were still produced in specific condition with the necessary savings measures for people and for the staff. Nevertheless, the business still continue in some part of it. And the good thing is to say, first, that is just postponed and not canceled. And probably that the demand for content will be even higher because of the need for broadcasters and other platforms even stronger afterwards or even as soon as possible. So the demand remains very strong and should remain at least as strong as expected before or even more.
[Operator Instructions] We have one next question from Yang, Lisa from Goldman Sachs.
So Lisa here. A few questions, please. So Unify, I'm just wondering why that was down more than TV advertising in Q1? Sounds a bit counterintuitive. And should we expect like similar trends? So Unify to perform worse than TV going forward? Could you also clarify how much reorganization costs we should expect at Unify this year?And then a follow-up on Studios & Entertainment. I think you mentioned there's no cancellation, but obviously, the issues are you can't obviously produce them for a couple of months. So what proportion of your revenue is coming from those daily shows? And assuming you have no production for 3 months, how much of that do you think could be compensated by higher volume of production later in the year as opposed to productions are being shifted towards 2021? And final question is on SALTO. Like can you maybe give us like how -- like an amount as how much do you expect to invest on this platform this year?
Okay. Well, on Unify, I would say that there has been still some specific cost linked with reorganization, and that should be lower in the following quarter. The regulation has been done in '19. We still have, in Q1, the long tail of the reorganization. There are people which we're expecting to join in Q4. There has been some leaving the company, but which has been postponed. But basically, I would say that is more specific to Q1. Even if due to the situation of COVID, we may have still a bit of a reorganization in Q2. Now concerning the impact on the business for Unify, there is -- a good thing is that the social e-commerce with Salesbox is very resilient and that they are doing quite well in terms of business. On the other side, on advertising, I would say that the impact, like for TV, will be quite significant as long as we will have a low economy and the situation where the advertising market remain very low. So that's what I can say at this stage on Unify. In terms of our daily shows, it represents for Newen -- globally for Newen, which is not exactly entertainment -- Studio & Entertainment. It's a part of Studio & Entertainment, as you know. Nevertheless, for Newen, it corresponds to probably less than 1/3 of their business, but nevertheless, more than 25%. So basically, that's in terms of range, what we can expect.How long? Really, we don't really know. If we can shoot from end of May, that will impact 2 months. And we have also, which is quite important to notice, that what we are doing today is just trying to review how we work during the crisis and what could be possible to improve and that we were not in a position to do or even to think of before the crisis. And of course, we are reviewing today all our process, including in the finance, just to look at what we can benefit from the experience we have in the -- during this crisis. And I can tell you that on the production, there could be some improvement in their process because we have discovered that there could be some -- so something -- some part of those process could be upgrade because of what we have experienced during those last 6 weeks. Now concerning SALTO, as you know, we have said that the impact of SALTO -- or the investment in SALTO could be around EUR 15 million per shareholder per year. So basically, that the amount to keep in mind for a year for us, with a global amount in 3 years, which would be EUR 45 million altogether on the next 3 years. Now it will start probably a bit slowly or more -- a bit more slowly than we thought initially just because there's been a few -- we postponed a bit the launch of the offer. Nevertheless, that will take -- step-by-step and quarter-after-quarter, that will increase. And for the first year, we don't think that we will reach from the first year the average of the 3 years. But we have to invest in content, in platform, in technology, and that's on the agenda.
So should we assume about, like, EUR 7 million, EUR 8 million for this year, instead of the EUR 15 million?
Probably a bit more. But again, for the -- yes, probably a bit more.
We have one last question from Thomas Coudry from Bryan Garnier.
I have 2, please. First one is a follow-up on Unify and advertising. Can we say that somehow, TV advertising is more resilient than digital advertising in this crisis as far as you see it from the TF1 group? And my second question is on a follow-up also on the M&A. You have an annual budget for bolt-on M&As in production and digital mainly. Can we assume that these budgets will be put aside for this year given the context?
Yes. Well, on the Unify advertising revenues, I would say that it's -- I'm not sure it's more resilient on the TV. What we said, it's down and probably up. It's a market and it could be quicker, quicker in terms of we had a drop in the programmatic very quickly, even more quickly than on TV. And on the other hand, probably recovery could be, on the other hand, quicker as well. So hopefully -- and I mean those market is a bit different -- are a bit different than TV. So adjustments are quicker, I would say, up or down. I would say -- I wouldn't say that it's more resilient as such, but that's the way we look at the business. And now concerning M&A. Yes, we had a budget. Of course, we are looking very cautiously and, of course, to the cash. So in principle, I would say, yes, you take the assumption that for this year, we will make a break. Nevertheless, there could be, at the end of the crisis, some opportunity in those 2 business, limited, but nevertheless. And because of the financial structure and because of the situation, we don't want to exclude absolutely M&A opportunities, but we will be very cautious. And there are so many topics to deal with those days that we would probably postpone our M&A activities. But again, our duty is just to be sure and to look at what is possible and opportunities on the market. Okay? Well, thank you. I don't think -- if there are other questions? No, that was the last one?
It was the last one, yes.
Okay. Well, thank you very much to all of you. Take care, be careful, and we will give you our results for Q2, probably not as previously. We will delay and probably on the 29th of July instead of 23rd, 29th of July in the morning. Thank you to all of you, and take care.
Ladies and gentlemen, this concludes today's conference. Thank you all for attending. You may now disconnect.