Friday October 23, 11:24 AM
UPDATE 2-French TV group TF1 loses No. 2 executive Duroux
By Dominique Vidalon
PARIS, Oct 23 (Reuters) - The number two executive at TF1 (Paris: FR0000054900 - news) is leaving France's
largest commercial television group after months of conflict with chief executive Nonce Paolini over the group's strategy.
General (3166.KL - news) director Axel Duroux is leaving the company today, TF1 said. It cited strategic differences as the reasons for Duroux's departure.
'TF1 and Axel Duroux decided by mutual agreement to terminate their collaboration because of strategic differences regarding the management of the company,' TF1 said in a statement on Friday.
Adding to TF1's woes, domestic rival M6 has won the broadcasting rights for the crucial France-Ireland soccer World Cup playoff game on Nov 14.
Duroux had been a member of M6's supervisory board until mid-June, when he joined TF1.
'Confusion at TF1... Symbolic failure to the benefit of M6 on a key game for the national team. The Duroux transfer did not work... These items of news are negative for TF1,' said CM-CIC (CC.NX - news) analysts in a note, reiterating a 'sell' rating on TF1 shares.
TF1 shares were down 3 percent at 11.46 euros in late morning trade, underperforming M6 shares which edged up 0.1 percent.
Duroux, a former chief executive of RTL (Berlin: R8L.BE - news) radio in France, joined TF1 in June to back up Paolini.
But according to various media reports, the two men did not get along, disagreeing over issues ranging from audience share targets to radio strategy.
Investors associated Duroux with cost cuts urgently needed at TF1 and his departure was 'very bad news', one trader said.
TF1, which attracts around one-half of France's TV advertising spending, has seen its audience share come under pressure from competing free digital terrestrial television (DTT) channels and the Internet.
In July, TF1 posted a 61 percent plunge in first-half net profit as sales fell 16 percent amid a global advertising downturn.
(Reporting by Dominique Vidalon; Editing by Mike Nesbit) Keywords: TF1/
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