France's FT1 gets kicked around

PARIS, France (CNN) -- TF1, France's top commercial broadcaster, saw its stock drop on Tuesday as France went out of the World Cup.

Its shares declined 1.2 percent to 29.60 euros after the game ended during early morning Paris trading.

TF1, which bought exclusive French rights to broadcast the World Cup for 60 million euros, was hoping to recoup its costs through advertising revenues. But advertisers would only have to pay the higher fees if the French team got into the quarterfinals and beyond.

"The share price will follow the performance of the French team,'' Charles Henri de Mortemart, media analyst at Dexia Securities in Paris, told Reuters before Tuesday's crucial match.

France had to win the match by at least two goals against Denmark to progress into the next round, but Danes Dennis Rommedahl and Jon Dahl Tomasson failed to read the script and scored two goals.

France, the defending champions, secured only one point from its three games.

TF1's stock has fallen by more than 7 percent since the tournament began on May 31.

According to Reuters, more than 400 million euros were wiped off the company's market value by last Thursday after France played to a goalless draw with Uruguay and lost to Senegal in the opening match.

About 10.6 million people watched the France-Uruguay match, giving the channel an audience share of 75.5 percent.

"Who cares if France does qualify on Tuesday,'' asked investment bank Lehman Brothers in its Monday note to investors. "French people do, TF1 investors should not.

"We estimate that an early exit would cost TF1 12 million euros or six euro cents per share. What really matters for the stock is when television advertising picks up.

"We would advise investors to buy the stock on any weakness induced by football madness."