M6 Métropole Télévision

Consolidated Results at 30 June 2021

Regulatory News:

M6 Métropole Télévision (Paris:MMT):

At its meeting held on 27 July 2021, the Supervisory Board reviewed the 2021 half-year financial statements approved by the Executive Board.

		H1
(€ millions)		2021

2020

change (%)

2019

change (%)   Consolidated revenue¹

645.0

557.3

+15.7%

714.6

-9.7%

  Group advertising revenue

529.1

400.6

+32.1%

539.3

-1.9%

- of which TV advertising revenue

453.8

338.6

+34.0%

454.3

-0.1%

- of which other advertising revenue

75.3

62.0

+21.4%

85.0

-11.4%

Group non-advertising revenue

115.9

156.7

-26.1%

175.3

-33.9%

  Consolidated profit from recurring operations (EBITA)²

165.0

84.4

+95.7%

148.3

+11.3%   Operating income and expenses related to business combinations

(3.3)

(7.6)

-56.9%

(6.5)

-49.7%

  Capital gains on disposals of equity investments

3.2

120.9

n.a

0.4

n.a   Operating profit (EBIT) from continuing operations

164.9

197.7

-16.6%

142.2

+16.0%   Net financial income/(expense)

(1.1)

(2.4)

n.a

(2.8)

n.a   Share of profit/(loss) of equity-accounted entities

(17.4)

(3.0)

n.a

3.1

n.a   Deferred and current tax

(27.1)

(31.2)

-13.1%

(53.8)

-49.6%

  Net profit/(loss) of operations sold / held for sale

0.0

0.0

n.a

(0.3)

n.a   Net profit

119.3

161.2

-25.9%

88.4

+35.0%   Net profit for the period - Group share

119.2

161.2

-26.0%

88.4

+34.8%

For the first half of the 2021, M6 Group recorded consolidated revenue of €645.0 million, up 15.7% or €87.6 million compared with H1 2020.

Multimedia advertising revenues grew 32.1% (up €128.5 million) and moved closer to their pre-pandemic levels. Following a difficult start to the year, marked by the ongoing Covid crisis, they benefited from a favourable base effect from mid-March onwards (start of the first 2020 lockdown) and the resumption of consumer spending.

Restated for scope effects, non-advertising revenues grew 3.1% (€3.5 million).

Consolidated profit from recurring operations (EBITA) totalled €165.0 million, an increase of €80.7 million compared with the 1^st half of 2020, that mainly reflected the growth in advertising revenue. It also included the impact of the recognition of €16.9 million in exceptional government subsidies. Excluding non-recurring items, M6 Group EBITA returned to its 2019 first half level (€148.1 million vs. €148.3 million).

Operating margin stood at 23.0%, excluding government subsidies, compared with 15.1% for the first half of 2020 and 20.7% for H1 2019. This improvement reflects the relevance of the strategic refocusing on TV and Radio (acquisition of the Youth TV division in H2 2019), and the Group’s flexibility in the management of its programming costs (despite the overspend in relation to Euro 2020) and its other costs.

The first half-year was also marked by an increase in the Group’s investments in streaming technologies, which explains the fall in profit of the equity-accounted entities. The losses recorded by Salto (SVOD offer) and Bedrock (development of technical streaming platforms) were partly offset by the positive contribution of Stéphane Plaza Immobilier (network of estate agencies).

The income tax charge for the half-year benefited from a positive tax settlement in respect of the 2020 financial year, resulting in net profit for the period of €119.3 million, compared with €161.2 million for the first half of 2020, during which €119.6 million in capital gains was recognised in respect of the transfer of iGraal to Global Savings Group and the opening up of Bedrock’s capital.

*

* *

In accordance with IFRS 8, the contribution of the Group’s 4 operating segments to consolidated revenue and EBITA was as follows:

			Q1						Q2						H1
	(€ millions)		2021		2020		%		2021		2020		%		2021		2020		%			2019		%
	TV		232.2		228.9		+1.4%		278.4		157.7		+76.6%		510.6		386.6		+32.1%			489.5		+4.3%
	Radio		34.2		31.5		+8.8%		38.8		28.4		+36.5%		73.1		59.9		+21.9%			82.3		-11.2%
	Production & Audiovisual Rights		9.6		15.9		-39.5%		10.2		13.4		-23.9%		19.8		29.3		-32.3%			40.1		-50.6%
	Diversification		20.3		44.9		-54.8%		20.7		36.3		-42.9%		41.0		81.2		-49.5%			102.5		-60.0%
	Other revenue		0.2		0.2		n.a		0.3		0.2		n.a		0.5		0.4		n.a			0.2		n.a
	Consolidated revenue		296.6		321.3		-7.7%		348.4		236.0		+47.6%		645.0		557.3		+15.7%			714.6		-9.7%
	TV														137.2		66.2		+107.0%			113.5		+20.9%
	Radio														14.4		(2.2)		n.a			12.0		+20.5%
	Production & Audiovisual Rights														11.9		14.4		-17.7%			11.4		+4.5%
	Diversification														6.1		8.2		-25.7%			15.9		-61.7%
	Unallocated revenue														(4.5)		(2.4)		n.a			(4.5)		n.a
	Consolidated profit from recurring operations (EBITA)		64.3		45.6		+41.1%		100.8		38.8		+159.7%		165.0		84.4		+95.7%			148.3		+11.3%
	Operating margin		21.7%		14.2%				28.9%		16.4%				25.6%		15.1%					20.7%

• TELEVISION

Over the first half of 2021, Individual Television Viewing Time remained at a high level, standing at 3 hours 46 minutes³, a year-on-year fall of 10 minutes following a record high during the first lockdown but an increase of 16 minutes in relation to the first half of 2019.

Over the first six months of 2021, M6 Group’s four free-to-air channels recorded an average audience share of 14.7% across the viewing public as a whole, a year-on-year increase of 0.2 pp, and 23.1% on the commercial target of women under 50 responsible for purchasing, up 0.6 pp⁴. These are record half-year levels for the Group, illustrating the relevance of its editorial strategy based on meaningful family friendly programmes that bring people together throughout the day.

- Across the entire day, the M6 channel retained its position as the 2nd largest channel on the commercial target with an audience share of 15.1% (up 1.0 pp).

In primetime, the channel posted its best H1 in nine years on the commercial target, with an audience share that grew significantly (up 2.2 pp) to 18.9%. M6 notably strengthened its leading entertainment brands, such as Top Chef (record season among WRP<50 with a 31% audience share), Mariés au premier regard (record season among WRP<50 with a 27% audience share) and Pékin Express (second best season among WRP<50 with a 27% audience share), while successfully innovating across all fields, with in particular Lego Masters (30% WRP<50), the one-off French drama Apprendre à t’aimer (33% WRP<50) and the new live show Appel à témoins (25% among under 50s).

Lastly, M6 benefited from its strategy of event-based programming with the Euro 2020 football tournament. The channel broadcast eight matches in June, including France v Germany, which attracted 15.2 million viewers.

- W9 strengthened its ranking as the second largest DTT channel amongst WRP<50 throughout the entire day (3.9% audience share, stable year-on-year). In access primetime, all the reality TV brands achieved record seasons amongst WRP<50. In primetime, the channel achieved numerous successes in drama, notably with Escape, a two-part TV film produced by the Group, which achieved a 12.8% audience share on the commercial target.

- 6ter remained the leading new generation DTT channel on the commercial target (2.5% audience share), thanks to its varied range of programmes for the whole family.

- Gulli, the leading children’s channel for 4-10 year olds, posted growth amongst its target audience with its share standing at 13.2%, a year-on-year increase of 1.5 points.

- By continuing its development in AVOD with a range of exclusive programmes, 6play significantly increased its appeal during the first half of 2021 with 20 million active users, compared with 17.2 million in the first half of 2020⁵.

M6 Group’s pay channels consolidated their position amongst the leading channels in the Pay TV environment⁶: Paris Première consolidated its status as the most watched Pay TV channel (12 million viewers each month) and Téva maintained its leadership amongst female viewers under the age of 50 (0.7% audience share).

Impacted at the start of the year by the ongoing pandemic, the TV advertising market picked up over the second quarter, due in part to a favourable base effect, but primarily thanks to the economic recovery. Within this context and also boosted by the broadcast of Euro 2020 on the M6 channel, the Group’s TV advertising revenues rose 84.1% in relation to Q2 of 2020, outperforming the market and significantly exceeding the levels achieved in the second quarter of 2019 (by 7.5%).

Over the first six months as a whole, the TV division’s advertising performance grew 34.0% compared with H1 2020.

Programming costs totalled €237.1 million compared with €192,8 million over the first half of 2020 and €241.9 million over the first half of 2019 (which did not include costs related to the Youth TV division, acquired in H2 2019). While continuing to optimise the management of its different schedules, the Group resumed its investments in programmes with in particular the broadcast of Euro 2020 and numerous new shows during the second quarter.

The TV division thus contributed €137.2 million to consolidated EBITA, against €66.2 million for the six months to 30 June 2020, benefiting from the audiovisual tax credit of €13.4 million. The margin from recurrent operations for the Group’s core business stood at 24.2% excluding the tax credit (compared with 17.1% for H1 of 2020 and 23.2% for H1 of 2019).

• RADIO

Over the 1^st half of 2021, the RTL Radio Division reaffirmed its status as France’s leading private radio group with an audience share of 18.1% among listeners aged 13 and over⁷, 4.5 percentage points ahead of its closest privately-owned rival.

- RTL, France’s top private radio station, achieved an audience share of 12.3%. Les Grosses Têtes, the leading flagship afternoon show, is also the most popular podcast in France, with almost 13 million listens and downloads per month⁸.

- RTL2, which recorded its best ever season, saw its audience share reach 3.0% over the first half (up 0.2 pp year-on-year). The station is also the leader in the Young Adult segment.

- Fun Radio achieved an audience share of 2.9% and Bruno dans la radio was ranked the second most popular breakfast show in France.

Over the first six months of the year, Radio revenue stood at €73.1 million, an increase of 21.9% compared with H1 2020, driven by the recovery of the advertising business.

EBITA totalled €14.4 million, compared with a loss of €2.2 million for the first half of 2020, mainly reflecting the increase in revenues and also including €3.4 million in government support (audiovisual tax credit + broadcast support grant). The operating margin of the Radio Division was 15.1% excluding government support.

• PRODUCTION & AUDIOVISUAL RIGHTS

In the 1^st half of 2021, revenue from Production and Audiovisual Rights operations totalled €19.8 million, down 32.3%, primarily due to the administrative closure of cinemas until 18 May 2021, compared to just 3 months in 2020. Films distributed by SND only recorded 0.5 million admissions over the first half of 2021, compared with 1.6 million over the same period last year.

Divisional EBITA was €11.9 million, compared with €14.4 million for the 1^st half of 2020.

• DIVERSIFICATION

Over the first half of 2021, Diversification revenues totalled €41.0 million, a fall of €40.2 million, €8.8 million of which was due to negative base effects related to the deconsolidation of iGraal and €35.6 million to the disposal of the home shopping business.

EBITA from Diversification stood at €6.1 million, against €8.2 million in the 1^st half of 2020, which included €3.1 million for activities disposed of in 2020.

• FINANCIAL POSITION

The Group had shareholders’ equity of €995.5 million at 30 June 2021, compared with €1,060.3 million at 31 December 2020). The net cash position was positive and stood at €38.4 million¹⁰ against €87.2 million at 31 December 2020, thereby reflecting the rapid rebuilding of the cash position following the payment of the dividend of €189.4 million in May 2021.

• OUTLOOK

The advertising business remains buoyant, without prejudice to any possible impacts related to the Covid crisis

Following the favourable opinion issued at the end of June by the employee representative bodies, on 8 July 2021 the Bouygues and RTL Groups announced that they had signed agreements relating to the proposed combination of TF1 and M6. The completion of the transaction remains subject to authorisation by the competent authorities (Autorité de la Concurrence, CSA) which can now commence their analysis (within a timetable consistent with that initially planned).

A conference call will be held on 27 July 2021 at 6.30pm (CEST).
A webcast will be broadcast on the site www.groupem6.fr (Finance section). Details on how to access the conference call are available at the same address.
Both the slideshow presentation and the consolidated half-year financial statements will be accessible online from 6.00 pm, it being specified that the Statutory Auditors have completed a limited review of the financial statements and issued an unqualified report.

Next release: Third quarter financial information on 26 October 2021 after close of trading

M6 Métropole Télévision is listed on Euronext Paris, Compartment A.
Ticker: MMT, ISIN Code: FR0000053225

¹ The information provided is intended to highlight the breakdown of consolidated revenue between advertising and non-advertising revenue. Group advertising revenue includes TV advertising revenue (advertising revenue of free-to-air channels M6, W9, 6ter and Gulli, and the platforms 6play and Gulli Replay, as well as the share of advertising revenue from pay channels), the advertising revenue of radio stations RTL, RTL2 and Fun, and the share of advertising revenue generated by diversification activities (mainly Internet).
² Profit from recurring operations (EBITA) is defined as operating profit (EBIT) before amortisation and impairment of intangible assets (excluding audiovisual rights) related to acquisitions and capital gains and losses on the disposal of financial assets and subsidiaries.
³ Source: Médiamétrie
⁴ Source: Médiamétrie
⁵ Source: Heartbeat
⁶ Source: Médiamétrie Médiamat Thématik, - wave 41 (January-June 2021)
⁷ Source: Médiamétrie 126,000
⁸ Source: Médiamétrie eStat Podcast (June 2021)
⁹ Source: CBO Box-office
¹⁰ The net cash position does not take into account rental liabilities resulting from the application of IFRS 16 - Leases

View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005904/en/