Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — FY2017 Earnings Presentation
51 slides from Metropole Television Sa's earnings presentation, 2018
Slide 1: Presentation of 2017 Annual Results
PRESENTATION OF 2017 ANNUAL RESULTS
Slide 2: Disclaimer
DISCLAIMER STATEMENTS CONTAINED IN THIS DOCUMENT, THE CONTENT OF THIS DOCUMENT MUST NOT BE PARTICULARLY THOSE CONCERNING FORECASTS ON CONSIDERED AS AN OFFER DOCUMENT NOR AS A FUTURE M6 GROUP PERFORMANCE, ARE FORWARD- SOLICITATION TO BUY OR SELL M6 GROUP SHARES. LOOKING STATEMENTS THAT ARE POTENTIALL
Slide 3: Presentation of 2017 Annual Results agenda
M6 GROUP PRESENTATION OF 2017 ANNUAL RESULTS 1. INTRODUCTION 2. OPERATIONS 3. FINANCIAL STATEMENTS 4. OUTLOOK 5. APPENDICES 3
Slide 4: Introduction
INTRODUCTION
Slide 5: Record WRP<50 audience share
1. INTRODUCTION HISTORIC AUDIENCE FIGURES RECORD WRP<50 AUDIENCE SHARE 22.3% 21.5% 22.2% 21.2% 21.1% 20.8% 21.3% 20.0% 20.5% 20.4% 19.2% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5 Source: Médiamétrie
Slide 6: Record WRP<50 audience share
22.3% RECORD WRP<50 AUDIENCE SHARE 21.5% 22.2% 21.2% 21.1% 20.8% 21.3% 20.0% 20.5% 20.4% 19.2% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 6
Slide 7: Integration of the radio division
TELEVISION CONTENT PRODUCTION & ACQUISITION ADVERTISING 1. INTRODUCTION RADIO INTEGRATION OF THE RADIO DIVISION DIGITAL OPERATIONS DIVERSIFICATION 7
Slide 8: Key figures 2017
2017 im KEY ETGURES on
Slide 9: Increase in results
1. INTRODUCTION - KEY FIGURES KEY FIGURES (€ millions) INCREASE IN RESULTS 2016 2017 ALL-TIME HIGH +8.5% ALL-TIME HIGH 1,387.3 1,278.7 +11.1% +5.1% +22.2% 948.0 1,110.3 1,166.6 853.3 +1.3% 245.5 248.7 +3.7% 203.5* 158.4 152.8 77.1 28.0 CONSOLIDATED ADVERTISING OTHER OPERATING OPERATING CONSOLIDATED
Slide 10: Momentum of TV and integration of RTL Radio
1. INTRODUCTION - KEY FIGURES MOMENTUM OF TV AND INTEGRATION OF RTL RADIO TOTAL RADIO TOTAL TELEVISION PRODUCTION & DIVERSIFICATION OTHER EXCL. RADIO AUDIOVISUAL RIGHTS +€108.6 m +€41.3 m 2017 VS +€53.8 m +€54.9 m 2016 REVENUE +€8.3 m GROWTH +€4.1 m +€3.2 m +€12.8 m +€30.0 m 2017 VS 2016 +€5.7 m EBI
Slide 11: Television: audience ratings
TELEVISION AUDIENCE RATINGS
Slide 12: 2017: M6 achieved its highest historical record on the commercial target
2. TELEVISION - AUDIENCE RATINGS 2017: M6 ACHIEVED ITS HIGHEST HISTORICAL RECORD ON THE COMMERCIAL TARGET FULL-YEAR WRP<50 AUDIENCE SHARES OF TV GROUPS (%) 36,6 34,1 34,1 33,3 33,0 32,6 32,7 32,2 32,0 32,1 32,3 +0.2 pp 26,0 24,8 23,1 22,2 22,3 +0.1 pp 21,9 21,2 21,1 21,3 21,5 20,8 20,5 20,4 20,5 20,
Slide 13: M6 channel prime-time stability over the last 4 years
2. TELEVISION - AUDIENCE RATINGS 2017: THE M6 CHANNEL HAS ACHIEVED PRIME-TIME STABILITY OVER THE LAST 4 YEARS AT A GOOD LEVEL ON THE COMMERCIAL TARGET 4+ AUDIENCE SHARE / WRP<50 (%) / AUDIENCE IN MILLIONS OF VIEWERS – 9.10PM-11.00PM TIMESLOT EXCLUDING EURO 2016 WEEKS – CONSOLIDATED AUDIENCE FIGURES
Slide 14: M6 has never been so close to TF1
2. TELEVISION - AUDIENCE RATINGS 2017: ON THE COMMERCIAL TARGET, M6 HAS NEVER BEEN SO CLOSE TO TF1 CHANGE IN M6 CHANNEL / TF1 CHANNEL AUDIENCE SHARE RATIO AMONG WRP<50 71% 71% 67% 66% 64% 64% 64% 58% 59% 57% 54% 54% 54% 52% 53% 55% 52% 51% 50% 47% 48% 46% 40% 38% 36% 34% 25% 27% 22% 14 Source: Média
Slide 15: Television: audience ratings DTT
TELEVISION AUDIENCE RATINGS DTT
Slide 16: W9 and 6ter among the leading DTT channels
2. TELEVISION – DTT AUDIENCE RATINGS W9 AND 6TER AMONG THE LEADING DTT CHANNELS ON THE COMMERCIAL TARGET 2016 3.4 3.3 3.2 3.0 2.7 2017 2.6 2.5 2.3 2.1 2.0 1.9 1.9 1.8 1.9 1.8 1.8 1.7 1.7 1.6 1.4 1.6 1.6 1.21.2 1.2 1.11.1 1.1 4+ AUDIENCE 0.9 0.6 0.8 0.6 0.8 0.9 SHARE (%) 0.3 0.6 0.3 4.3 4.0 3.8 4.0 3
Slide 17: W9 achieved an excellent year of growth
2. TELEVISION – DTT AUDIENCE RATINGS W9 ACHIEVED AN EXCELLENT YEAR OF GROWTH, WITH ITS BEST WRP<50 LEVEL SINCE 2013 HUGE SUCCESS FOR RECORD YEAR FOR UN DÎNER W9 TOP PRIMETIME DTT CHANNEL REALITY TV SHOWS PRESQUE PARFAIT ON W9, AMONG THE UNDER 50S, THANKS TO A IN THE 8PM SLOT DTT LEADER IN THE 6PM SL
Slide 18: Puissance TNT the leading DTT service
2. TELEVISION – DTT AUDIENCE RATINGS PUISSANCE TNT THE LEADING DTT SERVICE 2017 AUDIENCES (WRP<50) +0.4 pp 6.6% +0.5 pp -0.2 pp 4.3% 3.8% THE LEADING ADVERTISING SERVICE ON DTT 18
Slide 19: 6ter continued its growth
2. TELEVISION – DTT AUDIENCE RATINGS 6TER CONTINUED ITS GROWTH, WITH A SOLID BASE IN DAYTIME, AND NEW READY-MADE FORMATS, NORBERT AND US FILMS WEEKEND DAYTIME AND ACCESS THE CORE WEEKLY SCHEDULE WITH US FILMS PRIME TIME ACHIEVED STRONG LITTLE HOUSE ON THE PRAIRIE, AND ONCE UPON A TIME GROWTH, WITH T
Slide 20: Increase in programming costs and writedown of inventories
2. TELEVISION – PROGRAMMING COSTS OF FREE-TO-AIR CHANNELS INCREASE IN PROGRAMMING COSTS AND WRITEDOWN OF INVENTORIES (€ MILLIONS) +40.8 -31.5 461.2 451.9 2016 EURO 2016 PROGRAMMES 2017 20
Slide 21: Television: audience ratings Cab Sat
TELEVISION AUDIENCE RATINGS CAB SAT
Slide 22: Paris Première and Téva in top 3 pay-TV channels
2. TELEVISION – CAB SAT AUDIENCE RATINGS 2017: PARIS PREMIÈRE AND TÉVA, STILL IN THE TOP 3 MOST WATCHED PAY-TV CHANNELS N°1: MOST WATCHED PAY TV CHANNEL WITH N°1: FOR WRP<50 IN 2017 AND FOR THE PAST 7 YEARS 11 MILLION VIEWERS EACH MONTH N°3: 3RD MOST WATCHED PAY TV CHANNEL WITH 10 MILLION VIEWERS EA
Slide 23: Radio audience ratings
RADIO AUDIENCE RATINGS RIL @= |
Slide 24: RTL division: leading private radio group in France
3. RADIO AUDIENCE SHARE* (%) FY 2017 RTL DIVISION: LEADING PRIVATE RADIO GROUP 13,1% 12.7 IN FRANCE NO.1 RADIO 12,6% 12,8% 12,3% STATION IN FRANCE MORE THAN 6.5 MILLION LISTENERS JANUARY - APRIL - JUNE SEPTEMBER - NOVEMBER - EVERY DAY MARCH 2017 2017 OCTOBER DECEMBER 2017 2017 3,7% 4,1% 3,7% 3,6% 3.
Slide 25: Advertising market
— ADVERTISING MARKET A
Slide 26: Strong growth in M6 Group's advertising revenue in Q4 2017
2. ADVERTISING MARKET +6.4% STRONG GROWTH IN M6 GROUP’S ADVERTISING 250.3 REVENUE FREE-TO-AIR 235.3 IN Q4 2017 CHANNELS M6 GROUP NET +26.8% 2016 2017 ADVERTISING REVENUE (€ MILLIONS) +6.9% excl. radio RADIO 323.8 50.9 2016 2017 255.3 OTHER +13.1% OPERATIONS 20.0 22.6 internet 2016 2017 2016 2017 26
Slide 27: M6 Group advertising revenue reached an all-time high
2. ADVERTISING MARKET +4.6% M6 GROUP ADVERTISING REVENUE REACHED 829.5 AN ALL-TIME HIGH FREE-TO-AIR 792.9 CHANNELS M6 GROUP NET +11.1% 2016 2017 ADVERTISING REVENUE (€ MILLIONS) +5.1% excl. radio RADIO 948.0 50.9 2016 2017 853.3 +12.0% OTHER OPERATIONS 67.7 60.4 internet 2016 2017 2016 2017 27
Slide 28: Free-to-air channels advertising market share up 1.0 point
2. ADVERTISING MARKET M6 GROUP FREE-TO-AIR CHANNELS SAW THEIR ADVERTISING MARKET SHARE INCREASE BY 1.0 PERCENTAGE POINT IN 2017, REACHING AN ALL-TIME HIGH CHANGE IN NET TV ADVERTISING MARKET SHARE OF M6 GROUP'S FREE-TO-AIR 2009/2016 CHANNELS SINCE 2009 (%) 2017 +3.4 pp 24.4% 25.4%* 23.7% 23.3% 23.5%
Slide 29: Advertising time January 2018
2. ADVERTISING TIME January 2018 ADVERTISING TIME BROADCAST ON THE MAJOR PRIVATELY-OWNED TV CHANNELS IS COMPARABLE AVERAGE DAILY ADVERTISING TIME 2:40 FY 2017 2:52 2:57 2:35 29 Source: Micromarché / M6
Slide 30: Radio
RADIO AL c=
Slide 31: Integration of the leading private radio group in France
2. RADIO INTEGRATION OF THE LEADING PRIVATE RADIO GROUP IN FRANCE REVENUE (€ M) REMINDER OF THE SEASONALITY OF RADIO REVENUE 33% Q4 2017 26% 21% 20% 54.9 Q1 Q2 Q3 Q4 EBITA (€ M) 2017 FULL-YEAR EBITA (€ M) 12.8 12,8 7,4 0 -0,8 Q1 Q2 Q3 Q4 31
Slide 32: Production and audiovisual rights
PRODUCTION AND AUDIOVISUAL RIGHTS
Slide 33: Success of movies distributed by SND
2. PRODUCTION & AUDIOVISUAL RIGHTS CINEMA SUCCESS OF MOVIES A LINE-UP THAT REMAINS ATTRACTIVE AND IS GROWING INTERNATIONALLY DISTRIBUTED BY SND SND, 2ND RANKED EXPORTER OF FRENCH FILMS IN 2017 REVENUE (€ M) 13 MOVIES RELEASED VS 15 IN 2016 8 FILMS FINANCED 2016 10.7 M 8.5 M ADMISSIONS IN FRANCE ADMI
Slide 34: Diversification
DIVERSIFICATION |
Slide 35: M6 Web: dynamic online video advertising revenue
2. DIVERSIFICATION CATCH UP M6 WEB: DYNAMIC ONLINE VIDEO ADVERTISING THE GROUP IS CONTINUING THE DEVELOPMENT OF ITS DIGITAL PLATFORM REVENUE AND INTEGRATION OF IGRAAL REVENUE (€ M) 1.3 BN VIDEOS VIEWED IN 2017 1h14 THE LEADING PLATFORM FOR DAILY 2016 +12.8% VIEWING TIME 2017 109.3 96.9 EBITA (€ M) 7
Slide 36: 20M registered users on 6play OTT
2. DIVERSIFICATION 20M REGISTERED USERS ON 6PLAY OTT WITH 20M ACCOUNTS CREATED, 6PLAY ENJOYS A GENUINE ADVANTAGE IN THE ADVERTISING MARKET IN TERMS OF DATA 25 000 000 20M 20 000 000 15 000 000 10 000 000 5 000 000 0 36 Source: Gigya
Slide 37: Ventadis: decline in business volume in a challenging market
2. DIVERSIFICATION VENTADIS: DECLINE IN BUSINESS VOLUME IN A CHALLENGING MARKET RESTRUCTURING IN MORE SEASONAL EXPANSION PROGRESS ACTIVITY IN A HIGHLY OF THE RANGE COMPETITIVE DIGITAL MARKET TRANSFORMATION REVENUE GROWTH REVENUE (€ M) LAUNCHED 2016 2017 -8.7% 158.7 145.0 ARTISHOT EBITA (€ M) -24.9%
Slide 38: F.C.G.B: reduction in losses
2. DIVERSIFICATION F.C.G.B: REDUCTION IN LOSSES 2016 2017 REVENUE (€ M) EBITA (€ M) +8.5% 57.9 62.8 -4.9 -8.9 ENCOURAGING ON-FIELD PERFORMANCES 2015/2016 11th GROUP STAGE 2016/2017 6th FAILED TO QUALIFY 2017/2018 8th PRELIMINARY ROUND 38
Slide 39: Financial statements
FINANCIAL STATEMENTS ty
Slide 40: Condensed consolidated statement of comprehensive income
2017 / 2016 M6 GROUP 31 DECEMBER 2016 31 DECEMBER 2017 CHANGE (€ millions) REVENUE 1,278.7 1,387.3 108.6 OTHER OPERATING REVENUES 77.1 28.0 (49.1) TOTAL OPERATING REVENUES 1,355.8 1,415.4 59.5 MATERIALS AND OTHER OPERATING EXPENSES (60.7) (647.8) (708.5) PERSONNEL COSTS (INCL. PROFIT SHARING PLAN (1
Slide 41: Condensed balance sheet
2017 / 2016 M6 GROUP 31 December 2016 31 December 2017 CHANGE (€ millions) GOODWILL 101.5 235.6 134.1 NON-CURRENT ASSETS 100.6 304.7 405.3 CURRENT ASSETS 141.3 680.6 822.0 3. FINANCIAL STATEMENTS CASH & CASH EQUIVALENTS 174.4 54.3 (120.2) CONDENSED TOTAL ASSETS 1,261.3 1,517.1 255.8 BALANCE SHEET GR
Slide 42: Cash flow statement
2017 / 2016 M6 GROUP 31 DECEMBER 2016 31 DECEMBER 2017 CHANGE (€ millions) SELF-FINANCING CAPACITY FROM OPERATIONS 373.2 363.5 (9.7) OPERATING WCR MOVEMENTS (21.0) (31.9) (10.9) INCOME TAX (83.7) (111.4) (27.7) CASH FLOW FROM OPERATING ACTIVITIES 268.5 220.2 (48.4) CASH FLOW FROM INVESTMENT (145.8)
Slide 43: Proposed dividend of €0.95 per share
3. FINANCIAL STATEMENTS PROPOSED DIVIDEND OF €0.95 PER SHARE 2.5 € 17% 15.7% 15% 2.0 € 13.1% 13% 11% 1.50 € 1.00 € 1.5 € 8.7% 9% 7.2% 5.5% 5.5% 5.4% 7% 5.1% 4.4% 1.0 € 4.8% 4.7%* 5% 3% 0.5 € 1.00 € 1.00 € 96% 0.95 € 0.85 € 79% 82% 84% ** 0.85 € 76% 0.85 € 0.85 € 87% 0.85 € 93% 0.85 € 70% 76% 1% 0.0
Slide 44: Outlook
- OUTLOOK = Ol
Slide 45: 2018 challenges
4. OUTLOOK 2018 CHALLENGES STRENGTHENING DEVELOPING SUPPORTING ESTABLISHING BUILDING A EVENTS BASED AND IN-HOUSE NEW WAYS OF A NEW EQUILIBRIUM MULTIMEDIA LOCAL CONTENT PRODUCTION CONSUMING TV WITH GROUP PROGRAMMES DISTRIBUTORS 45
Slide 46: Appendices
APPENDICES A
Slide 47: Analytical consolidated income statement
2017 / 2016 CHANGE (€ millions) 31/12/2017 31/12/2016 (€ millions) (%) TV ADVERTISING REVENUE - FREE-TO-AIR CHANNELS 829.5 792.9 36.6 4.6% REVENUE - OTHER OPERATIONS 67.7 62.9 4.8 7.6% PROFIT FROM RECURRING OPERATIONS (EBITA) 189.2 159.3 30.0 18.8% RADIO REVENUE 54.9 - 54.9 0.0% PROFIT FROM RECURRIN
Slide 48: Segment contribution analysis
5. APPENDICES SEGMENT CONTRIBUTION ANALYSIS 31/12/2017 31/12/2016 2017 / 2016 change BUSINESS PROFIT FROM BUSINESS PROFIT FROM BUSINESS PROFIT FROM SEGMENT EXTERNAL RECURRING SEGMENT EXTERNAL RECURRING SEGMENT EXTERNAL RECURRING (€ millions) TELEVISION TOTAL REVENUE OPERATIONS TOTAL REVENUE OPERATIO
Slide 49: Segment contribution analysis
5. APPENDICES SEGMENT CONTRIBUTION ANALYSIS 31/12/2017 31/12/2016 2017 / 2016 CHANGE PRODUCTION PROFIT FROM PROFIT FROM PROFIT FROM AND BUSINESS BUSINESS BUSINESS EXTERNAL RECURRING EXTERNAL RECURRING EXTERNAL RECURRING (€ millions) SEGMENT SEGMENT SEGMENT REVENUE OPERATIONS REVENUE OPERATIONS REVEN
Slide 50: Analytical presentation of segment contributions
FREE-TO-AIR CHANNELS: GROSS MARGIN ON PROGRAMMING 2017 / 2016 CHANGE (€ millions) 31/12/2017 31/12/2016 (€ millions) (%) EXTERNAL FREE-TO-AIR TV 5. APPENDICES ADVERTISING REVENUE 829.5 792.9 36.6 4.6% ANALYTICAL PRESENTATION OF INTRA-GROUP FREE-TO-AIR TV 4.4 4.7 (0.4) -7.6% ADVERTISING REVENUE SEGME
Slide 51: Questions & answers
wwii _— dia y Tae | QUESTIONS: ANSWERS _ |
Métropole Télévision (M6 Group) — FY2017 Earnings Presentation on 6ix