M6 Metropole Television

Consolidated Results at 30 June 2023

Regulatory News:

M6 Metropole Television (Paris:MMT):

At its meeting held on 25 July 2023, the Supervisory Board reviewed the 2023 half-year financial statements approved by the Executive Board.

	H1

 

(€ millions)

2023

2022 (*)

% change

  Consolidated revenue¹

621.9

664.2

-6.4%

  Group advertising revenue

504.3

530.1

-4.9%

- of which TV advertising revenue

427.8

455.3

-6.0%

- of which other advertising revenue

76.5

74.8

+2.2% Group non-advertising revenue

117.6

134.1

-12.3%

  Consolidated profit from recurring operations (EBITA)²

135.0

161.1

-16.2%

  Operating income and expenses related to business combinations

(4.9)

(7.9)

-37.6%   Capital gains on asset disposals

4.7

0.0

n.a   Operating profit (EBIT) from continuing operations

134.7

153.3

-12.1%

  Net financial income/(expense)

4.5

(0.1)

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

4.3

(20.5)

n.a   Deferred and current tax

(37.0)

(39.6)

-6.7%

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

0.0

0.0

n.a   Net profit for the period

106.5

93.0

+14.5%   Net profit for the period - Group share

104.6

91.8

+14.0%  

(*) The income statement to 30 June 2022 has been restated to reflect the final allocation of the acquisition cost of Stéphane Plaza France.

For the first half of the 2023 financial year, M6 Group recorded consolidated revenue² of €621.9 million, down 6.4% compared with H1 2022. Excluding the scope effect, the decline was 4.4%.

Within a weaker macro-economic environment, the TV advertising market was characterised by limited visibility and lower volumes. In parallel, the Individual Viewing Time stood at 2 hours 16 minutes³ on the commercial target of 25-49 year olds (-17 minutes compared with the first half of 2022). Against this backdrop, M6 Group recorded a 6.0% decline in TV advertising revenue.

Advertising revenues from other media grew by 2.2%.

Impacted by the decline in its TV advertising revenue, the Group’s consolidated profit from recurring operations (EBITA)⁴ fell 16.2% to €135.0 million, representing an operating margin of 21.7%.

During the half-year, the Group sold its 51% stake in CTZAR, achieving a capital gain of €4.7 million. Moreover the Group recorded a financial income of € 4.5 million, up € 4.6 million compared with H1 2022.

The contribution of equity-accounted entities increased by €24.8 million over the half-year to stand at €4.3 million. The discontinuation of Salto contributed to the improvement, with a provision established for all the winding up costs at 31/12/2022. Moreover, GSG’s profitability improved significantly, notably as a result of the acquisition of Pepper.com, completed in January 2023. Lastly, investments in streaming were continued by Bedrock.

As such, net profit totalled €106.5 million, up 14.5% in comparison with the first half of 2022.

*
* *

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)		2023		2022		%		2023		2022		%		2023		2022		%
TV		249.8		256.3		-2.5%		246.3		270.0		-8.8%		496.1		526.3		-5.7%
Radio		34.4		32.2		+6.8%		43.9		42.4		+3.5%		78.3		74.6		+4.9%
Production & Audiovisual Rights		18.7		15.3		+22.5%		8.6		11.4		-24.8%		27.3		26.7		+2.3%
Other diversification		9.8		18.5		-47.1%		10.0		17.6		-43.4%		19.7		36.1		-45.3%
Other revenue		0.2		0.2		n.a		0.2		0.2		n.a		0.5		0.5		n.a
Consolidated revenue		312.9		322.5		-3.0%		309.0		341.7		-9.6%		621.9		664.2		-6.4%
TV														99.0		129.0		-23.2%
Radio														18.5		13.3		+38.8%
Production & Audiovisual Rights														10.3		12.2		-15.0%
Diversification														9.9		8.3		+19.6%
Unallocated EBITA														(2.8)		(1.6)		n.a
Consolidated profit from recurring operations (EBITA)		59.5		67.2		-11.5%		75.5		94.0		-19.6%		135.0		161.1		-16.2%
Operating margin		19.0%		20.8%				24.4%		27.5%				21.7%		24.3%

Television

Over the first six months of 2023, the Group’s free-to-air channels (M6, W9, 6ter and Gulli) achieved an audience share of 20.6% on the commercial target of 25-49 year olds³ (20.8% in the first half of 2022). Within an increasingly competitive environment, the Group focused its efforts on the strategic primetime slot in which the M6 channel continued to display strong resilience.

Leader on the 25-49 year old target for four of its flagship entertainment programmes – Pékin Express (25% audience share), Top Chef (25%), Qui veut être mon associé ? (23%), and Mariés au premier regard (22%), its Sunday evening magazine shows also posted record performances, including Capital (21% audience share) which had its best season in 25 years, Enquête Exclusive (21%) which recorded its second best ever season and Zone Interdite, which posted its best season in 15 years amongst 25-49 year olds (18% audience share).

The DTT channels (W9, 6ter and Gulli) recorded an audience share of 8.1% amongst 25-49 year olds (up 0.1 percentage points), with the 6ter channel recording its second best season ever amongst 25-49 year olds.

In line with the overall decline of the TV advertising market, the TV division’s advertising revenue fell 6.0% in relation to the first half of 2022.

Operational costs were stable over the half-year. TV programming costs were €234.5 million, compared with €240.5 million in the first half of 2022.

The TV activity contributed €99.0 million to consolidated EBITA and 20% to the segment’s margin from recurring operations.

Radio

Over the first half of 2023, the RTL radio division recorded an audience share of 18.0% with listeners aged 13 and over⁵ and thereby maintained its position as the leading commercial radio group.

The Group consolidated its audience share on the commercial target of 25-49 year olds, recording 15.3%⁶ (up 0.2 pp).

Over the first six months of the year, Radio revenue stood at €78.3 million, an increase of 4.9% compared with H1 2022 including a 2.9% increase in advertising revenue.

EBITA totalled €18.5 million, compared with €13.3 million during the first half of 2022, thus achieving an operating margin of 23.7%, compared with 17.9% over H1 2022. This improvement notably reflects the increase in synergies developed with the Group’s other media.

Production and audiovisual rights

The revenue from the Production & Audiovisual Rights activity stood at €27.3 million, an increase of 2.3% over the first six months, driven by the healthy sales momentum of audiovisual rights over the first quarter which offset the decline in the film activity over the half-year (1.5 million admissions⁷ compared with 2.5 million over the first half of 2022).

Divisional EBITA was €10.3 million, compared with €12.2 million for the first half of 2022.

Diversification

Diversification revenue stood at €19.7 million, down €16.4 million, including €13.8 million due to the deconsolidation of Best of TV, sold in November 2022.

EBITA from Diversification stood at €9.9 million, against €8.3 million over the first half of 2022, reflecting the Group’s healthy diversification portfolio and notably Stéphane Plaza Immobilier which once again demonstrated its strength.

*
* *

Financial position

The Group had shareholders’ equity of €1,175.5 million at 30 June 2023, compared with €1,199.2 million at 31 December 2022. The net cash position was positive and stood at €199.2 million⁸ against €282.0 million at 31 December 2022, thereby reflecting the rapid rebuilding of the cash position following the payment of the dividend of €126.3 million in May 2023 (€1.0 per share). The net cash position stood at €162.9 million at 30 June 2022.

Entry into exclusive negotiations

Groupe M6 and Prisma Media have signed an exclusive negotiation agreement for the sale of Groupe M6’s thematic online media and services division, which comprises 8 main brands : Cuisine AZ, Passeport Santé, Fourchette & Bikini, Déco, Turbo, M6 météo, Croq’Kilos, Croq’Body.

Over the past eight years, Groupe M6 has significantly developed this digital portfolio, which now represents more than 18 million unique monthly visitors, while increasing its sales and profitability.

Faced with major international digital players and social networks, consolidation is necessary. Against this backdrop, the M6 Group is enabling its digital division to grow stronger by joining Prisma Media which is rapidly expanding internationally.

The proposed transaction is expected to close after the summer and will make a positive contribution to Group net profit, allowing it to generate additional investment margins for the transformation of its activity.

Completion of the transaction remains subject to the usual conditions precedent.

CSR and Ethics

The Group has been committed to improving gender equality in managerial and leadership roles for several years. As a result of the action taken, female representation on leadership bodies⁹ stood at 34% at 30 June 2023, a figure the Group intends to continue improving.

In addition, the M6 Foundation, which has been committed to the social and professional reintegration of prisoners since 2010, received the Grand Prix de la Responsabilité des Médias in the Diversity and Inclusion category, on account of its awareness-raising days for employees and companies regarding the recruitment of ex-prisoners.

In accordance with the commitments made by M6 Group as part of the agreement signed with Arcom to broadcast the M6 frequency in DTT, at its meeting of 25 July 2023 the Supervisory Board of Métropole Télévision appointed Marie Cheval, Vice Chair of the Supervisory Board, as Independent Director responsible for ethics and the independence of information for a period of three years. Her role, which complements that of the Ethics Committee, chaired by Louis de Broissia, will notably include ensuring receipt of the deliberations of the Ethics Committee and monitoring their effects.

Outlook

The Group will continue to develop its content offering, particularly 6play and 6play Max, which are key to its transformation.

The advertising market is currently uncertain given the present economic environment even positive elements are beginning to appear in the 2nd half.

A conference call will be held on 25 July 2023 at 6.30pm (CET).
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 24 October 2023 after close of trading

M6 Métropole Télévision is listed on Euronext Paris, Compartment A.
Ticker: MMT, ISIN Code: FR0000053

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¹ Excluding the deconsolidation of Best Of TV which was sold on 30 November 2022
² 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.
³ Source: Médiamétrie Médiamat
⁴ 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.
⁵ Source: Médiamétrie National Radio Audience Study - January-June 23 - In combination with M6 Group - Monday-Friday, 05:00-24:00
⁶ Source: Médiamétrie National Radio Audience Study - January-June 23 - In combination with M6 Publicité Radio - Monday-Friday
⁷ Source: CBO Box-office
⁸ The net cash position does not take into account lease liabilities resulting from the application of IFRS 16 - Leases
⁹ Excluding Executive Board members, in accordance with the Rixain Law

View source version on businesswire.com: https://www.businesswire.com/news/home/20230725847170/en/

The Metropole Television Stock at the time of publication of the news with a fall of -3,11 % to 12,45EUR on Tradegate stock exchange (25. Juli 2023, 19:56 Uhr).