French investors endured 90 minutes of business mixed with pain as the World Cup kicked off yesterday, with shares in French TV channel TF1 tracking almost every pass of the ball in the opening France-Senegal match.
TF1 paid €60 million for the exclusive rights to broadcast the tournament. While the rest of France oohed and aahed, traders pushed TF1 shares up 1 per cent simply because French striker David Trezeguet nearly scored.
But when the Blues tripped up, dealing screens went red.
A first-half goal by Senegal midfielder Pape Bouba Diop sent TF1 shares into an immediate slide, reflecting worries that the television company could lose a mass audience if defending world soccer champions France crash out of the tournament early.
"Ouch! This is not good," a Paris trader said as Senegal humiliated its former colonial master on the soccer pitch and sent French TV bosses crying into their wallets.
"Our eyes are glued to television screens and to TF1," said a trader in Paris. "A premature exit of France would be negative for TF1, which paid for the 2002 and 2006 rights."
France's top commercial channel, which raked in €40 million from World Cup advertising in 1998, said in March it expected revenue from the 2002 competition to come close to €60 million plus €6 million in production costs.
But analysts estimate that even if France wins the tournament, TF1 would still end up between €10 million and €35 million out of pocket due to a worsening industry slump.
As the final whistle blew, TF1 shares were down nearly 3 per cent at €31.7, making them the biggest blue-chip loser in a market usually dominated by swings in telecoms and oil.
Shares in rival M6 held flat - it is running a highly popular reality TV show that could provide solace to French fans if their World Cup dream turns into a nightmare.- (Reuters)
