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Bouygues writes down TF1 stake as linear advertising income tumbles

By Reuters News

Oct 30 (Reuters) - Bouygues BOUY.PA will book a €569 million ($635 million) impairment on its stake in broadcaster TF1 TFFP.PA, cutting its profit for the first nine months of the year, the French conglomerate said on Friday.

The company said the impairment is due to TF1's sharp decline in linear advertising revenue for fourth consecutive quarter.

  • Following the write-down the value of the TF1 stake on the company's balance sheet will drop to €2.0 billion as of end-September, down 37% to €9.67 per share

  • The write-down on the stake's value eliminates the entire goodwill or premium Bouygues associated with the shares

  • The charge will not impact Bouygues' liquidity or investment capacity

  • Bouygues added it still sees TF1 as a strategic asset and would continue to support its long-term strategy.

  • The group is TF1's largest shareholder with a 46.9% stake, according to LSEG data

  • Bouygues is due to report its nine-month and third-quarter results on November 5



($1 = 0.8957 euros)

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