Metropole Television Sa · EURONEXT:MMT

Metropole Television Sa — H1 2016 Earnings Presentation

40 slides from Metropole Television Sa's earnings presentation, Jul 26, 2016

  1. Slide 1: Presentation of 2016 Half-Year Results

    26 JULY 2016 EG PRESENTATION OF 2016 HALF-YEAR RESULTS

  2. Slide 2: Disclaimer

    DISCLAIMER Statements contained in this document, particularly those concerning forecasts on future M6 Group performance, are forward–looking statements that are potentially subject to various risks and uncertainties. Any reference to M6 Group’s past performance should not be interpreted as an indic

  3. Slide 3: Presentation of 2016 Half-Year Results – Agenda

    PRESENTATION OF 2016 HALF-YEAR RESULTS M6 GROUP 1. INTRODUCTION 2. TELEVISION 3. PRODUCTION AND AUDIOVISUAL RIGHTS 4. DIVERSIFICATION 5. FINANCIAL STATEMENTS 6. OUTLOOK 7. APPENDICES 3

  4. Slide 4: Introduction

    INTRODUCTION

  5. Slide 5: 2016 1st Half-Year Highlights

    INTRODUCTION 2016 1ST HALF-YEAR HIGHLIGHTS  Growth in audience share  Success of access primetime on M6 Television  A successful Euro  Growth in advertising revenue  Success of the major releases Prod & Audio–  Increase in operating profit visual Rights  Gradual termination of the M6 Mobile c

  6. Slide 6: 2016 HY1 Key Figures

    2016 HY1 KEY FIGURES

  7. Slide 7: A Solid Performance

    INTRODUCTION – KEY FIGURES A SOLID PERFORMANCE - 9.0% Key figures (€m) +2.5% HY1 2015 102.6 645.5 93.4 HY1 2016 629.9 +4.7% 527.4 552.1 EBITA EXCL. IMPACT OF M6 MOBILE EXIT +32.6% 136.0 +45.0% 102.6 84.6 58.3 CONSOLIDATED CONSOLIDATED OPERATING EXPENSES NET PROFIT REVENUE EBITA Margin from recurring

  8. Slide 8: EBITA of €136.0 Million

    INTRODUCTION – KEY FIGURES EBITA OF €136.0 MILLION HY1 2016 EBITA vs. HY1 2015 (€m) -0.1 +42.6 +16.5 -24.0 102.6 -2.7 136.0 TV Division: -10.2 HY1 2015 Free-to-air TV Free-to-air Other TV M6 Mobile Other HY1 2016 advertising channels’ division contractual (Production & revenue (EBITA programming imp

  9. Slide 9: Television

    TELEVISION

  10. Slide 10: A Market That Is Still Fragmenting

    AUDIENCE FIGURES A MARKET THAT IS STILL FRAGMENTING 87 83 77 73 70 67 67 65 65 63 61.4 Traditional channels 37 38,6 35 36 “Other TV” 33 33 31 27 23 21 22 22 22 21,4 21 17 18 1st generation DTT channels 14 14 11 12 13 12 12 11 11 11 10 9,9 Pay channels 3 6 13 4 10 2 2nd generation DTT channels 6 7,3

  11. Slide 11: M6 Group Made Progress in HY1 2016

    AUDIENCE FIGURES M6 GROUP MADE PROGRESS IN HY1 2016 AUDIENCE FIGURES OF HISTORICAL GROUPS Audience share 4+ (%) 2015 TO DATE 2016 TO DATE -0.6pp -0.3pp +0.5pp -0.5pp 27,8 27,2 28,8 28,5 13.5 14.0 8,5 8,0 Audience share WRP<50 (%) 2015 TO DATE 2016 TO DATE - 0.7pp +1.3pp - 1.0pp 32,1 31,4 - 0.6pp 20.

  12. Slide 12: M6: Only Traditional Channel to Make Progress

    AUDIENCE FIGURES M6: ONLY TRADITIONAL CHANNEL TO MAKE PROGRESS AUDIENCE SHARE OF TRADITIONAL CHANNELS - Euro effect: +0.2 pp Audience share 4+ (%) 2015 TO DATE 2016 TO DATE - Other programmes: +0.3 pp -0.7pp -0.7pp +0.5pp -0.1pp -0.8pp 21,5 20,8 9.8 10.3 14,2 13,5 9,0 8,9 2,9 2,1 Audience share WRP<

  13. Slide 13: M6: Bridging the Gap with TF1 and Increasing the Gap with D8

    AUDIENCE FIGURES M6: BRIDGING THE GAP WITH TF1 AND INCREASING THE GAP WITH D8 M6 / TF1 audience share ratio D8 / M6 audience share ratio WRPs<50 (%) WRPs<50 (%) 71% 63% 29% 28% 2015 to date 2016 to date 2015 to date 2016 to date Source: MMW Médiamétrie

  14. Slide 14: M6: Progress of Access Primetime

    AUDIENCE FIGURES M6: PROGRESS OF ACCESS PRIMETIME Audience share 4+ and WRPs<50 at access primetime (5.30pm – 7.30pm) 1.1 m 19% WRPs<50 +28% 19,3 M6 leader viewers < 50 y.o. and WRPs<50 +14% 15,1 10,6 9,3 1.8 m 21% WRPs<50 M6 leader viewers < 50 4+ FRDA-50 y.o. and WRPs<50 2015 TO DATE 2016 TO DATE

  15. Slide 15: M6: Many Primetime Successes

    AUDIENCE FIGURES M6: MANY PRIMETIME SUCCESSES M6 grew year-on-year at primetime (9pm – 10.30pm time slot) Success of major brands +11% 18,5 +10% 16,7 3.3 M 4.2 M 4.6 M 22% 31% 31% 12,6 WRPs<50 WRPs<50 WRPs<50 11,5 All-time record To date Success of new Attractive new US series +10% programmes 2,9 3,

  16. Slide 16: M6's Three Largest Audience Figures in Its History

    AUDIENCE FIGURES WITH THE EURO, M6 ACHIEVED ITS THREE LARGEST AUDIENCE FIGURES IN ITS HISTORY Top 10 largest audience figures of M6 since its creation (millions of viewers) EURO 2016 / PORTUGAL-FRANCE - FINAL Sun 10/07/16 20.8m EURO 2016 / FRANCE-ICELAND Sun 03/07/16 17.2m EURO 2016 / SWITZERLAND-FR

  17. Slide 17: DTT Audience Figures

    TELEVISION DTT AUDIENCE FIGURES

  18. Slide 18: W9: Stable for WRPs<50

    DTT AUDIENCE FIGURES W9: STABLE FOR WRPS<50 Audience share 4+ (%) 2015 TO DATE 2016 TO DATE +0.2pp - 0.3pp - 0.2pp +0.3pp - 0.2pp = - 0.1pp +0.1pp 3,5 3,7 3,1 2,8 2.6 2.4 1,6 1,9 2,0 1,8 1,8 1,8 1,6 1,5 1,1 1,2 Audience share WRPs<50 (%) 2015 TO DATE 2016 TO DATE +0.1pp = - 0.3pp +0.3pp +0.3pp +0.2p

  19. Slide 19: W9: 2nd DTT Channel for the Commercial Target

    DTT AUDIENCE FIGURES W9: 2ND DTT CHANNEL FOR THE COMMERCIAL TARGET Solid ratings for W9 at access Very good performance of sports primetime 1.2 m 4% 4+ / 7% 3% 4+ / 6% 5% 4+ / +21% 4+ / 12% 4+ / audience 24% WRPs<50 WRPs<50 8% up 14% Men<50 Men<50 Most attractive film range of DTT for Best magazine

  20. Slide 20: 6ter: The Leading New DTT Channel for the Commercial Target

    DTT AUDIENCE FIGURES 6TER: THE LEADING NEW DTT CHANNEL FOR THE COMMERCIAL TARGET Audience share 4+ (%) Audience share WRPs<50 (%) +0.3pp 1.7 2.2 2,1 1,6 +0.2pp 1,5 1.3 0.9 0.9 1,0 0,9 0.7 0,5 20 Source: MMW

  21. Slide 21: 2016: 6ter Had a Strong Start to the Year

    DTT AUDIENCE FIGURES 2016: 6TER HAD A STRONG START TO THE YEAR Daytime Primetime 6ter leading HD DTT channel for WRP<50 (1) 265,000 viewers on average (2) 6ter co-leader of HD DTT channels for WRP<50 (2) Audience share WRP<50 in 2016 to date – 10am-8pm (%): Audience share WRP<50 in 2016 to date – 8.

  22. Slide 22: Advertising Market

    TELEVISION ADVERTISING MARKET

  23. Slide 23: Sharp Fall in April Illustrates Advertising Market Volatility

    TELEVISION - ADVERTISING MARKET DESPITE GROWTH AT THE START OF THE YEAR, THE SHARP FALL IN APRIL ILLUSTRATES THE VOLATILITY AND LACK OF VISIBILITY IN THE ADVERTISING MARKET Change in net TV advertising market in 2016 vs. 2015 January-May 2016 vs January-May 2015 Kantar Media data +6% +3% +2% +1% +1.

  24. Slide 24: M6 Group Advertising Revenue Was Up 5.3%

    TELEVISION – ADVERTISING MARKET M6 GROUP ADVERTISING REVENUE WAS UP 5.3% Free–to–air channels M6 group net advertising revenue (€m) +4.7% +5.3% 398.8 381.0 405.6 427.1 Other activities Internet +15.3% 24.5 28.3 24 HY1 2015 HY1 2016

  25. Slide 25: Production and Audiovisual Rights

    PRODUCTION AND AUDIOVISUAL RIGHTS

  26. Slide 26: Half-Year Marked by Box Office Success of SND Films

    PRODUCTION & AUDIOVISUAL RIGHTS A HALF-YEAR MARKED BY THE BOX OFFICE SUCCESS OF SND FILMS HY1 2015 HY1 2016 CINEMA +14.1% Increase in both sales and EBITA due to a more extensive line-up at SND 48.6 55.5 SND: 11 films released to cinemas vs 4 in HY1 2015 Revenue (€m) 7.7M 3.9M +33.7% HY1 2015 HY1 20

  27. Slide 27: Diversification

    DIVERSIFICATION

  28. Slide 28: M6 Mobile: Gradual Termination of Marketing for the Service

    DIVERSIFICATION M6 MOBILE: GRADUAL TERMINATION OF MARKETING FOR THE SERVICE Gradual transfer of M6 mobile by Orange account holders to equivalent Orange services Excluding contractual €50 million compensation, compensation received in respect of the end €2.4 million of marketing decline in M6 mobile

  29. Slide 29: M6 Web Excluding M6 Mobile: Increase in Online Video Advertising Revenues

    DIVERSIFICATION M6 WEB EXCLUDING M6 MOBILE: INCREASE IN ONLINE VIDEO ADVERTISING REVENUES 6play The Group continues the development of its digital platform Success of 10 m subscriber mark reached in the new June 110 m videos viewed each month HY1 2015 HY1 2016 on average (up 50% year on year) 5.8 5.

  30. Slide 30: Decline in the Contribution of Ventadis

    DIVERSIFICATION DECLINE IN THE CONTRIBUTION OF VENTADIS HY1 2015 HY1 2016 -8.6% 83.2 76.0 A market under Range pressure undergoing Decline in volumes sold renewal Revenue (€m) Decline in margin -53.4% 8.3 3.9 Extension of the range EBITA (€m) Increase in sales (development of the photo printing busi

  31. Slide 31: F.C.G.B Broke Even

    DIVERSIFICATION F.C.G.B BROKE EVEN HY1 2015 HY1 2016 Weaker sports results offset by the sale of players 32.3 31.0 during the winter transfer window Capital gains on transfers Revenue preliminary round (€m) 2013/2014 7th Not qualified EBITA (€m) 2014/2015 6th A new manager for the +0.3 coming season

  32. Slide 32: Financial Statements

    FINANCIAL STATEMENTS

  33. Slide 33: Condensed Consolidated Statement of Comprehensive Income

    FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME H1 2016/2015 M6 Group 30 June 2015 30 June 2016 change (€ m) Revenue 629.9 645.5 15.5 Other operating revenue 4.5 69.9 65.4 Total operating revenue 634.5 715.4 80.9 Materials and other operating expenses (313.1) (344.6) (3

  34. Slide 34: Condensed Balance Sheet

    FINANCIAL STATEMENTS CONDENSED BALANCE SHEET H1 2016/2015 M6 Group 31 December 2015 30 June 2016 change (M€) Goodwill 89.7 89.7 - Non-current assets 287.2 298.0 10.8 Current assets 637.3 719.1 81.8 Cash and cash equivalents 175.8 90.3 (85.5) TOTAL ASSETS 1,190.2 1,197.2 7.0 Group equity 583.9 561.9

  35. Slide 35: Cash Flow Statement

    FINANCIAL STATEMENTS CASH FLOW STATEMENT Change M6 Group 30 June 2015 30 June 2016 (€ m) Self-financing capacity from operations 150.9 191.3 40.4 WCR movements (60.0) (54.5) 5.5 Advances in respect of leases (20.0) - 20.0 Taxes (31.9) (33.8) (1.8) Cash flow from operating activities 39.0 103.1 64.1

  36. Slide 36: Appendices

    APPENDICES

  37. Slide 37: M6 Group Analytical Consolidated Income Statement

    APPENDICES M6 GROUP ANALYTICAL CONSOLIDATED INCOME STATEMENT 2016/2015 change (€ millions) 30/06/2016 30/06/2015 €m % TV Revenue - Free-to-Air TV advertising 398.8 381.0 17.8 4.7% Revenue - Other TV 30.7 30.8 (0.1) -0.3% EBITA 69.6 79.7 (10.2) -12.7% Production and Audiovisual Rights Revenue 55.5 48

  38. Slide 38: Segment Contribution Analysis

    APPENDICES SEGMENT CONTRIBUTION ANALYSIS TELEVISION 30/06/2016 30/06/2015 2016 / 2015 change Business Business segment External Business segment External External (€ millions) EBITA EBITA segment total EBITA total revenue revenue total revenue revenue revenue revenue Total TV division 438.9 429.5 69

  39. Slide 39: Analytical Presentation of Segment Contributions Free-to-Air TV

    APPENDICES ANALYTICAL PRESENTATION OF SEGMENT CONTRIBUTIONS FREE–TO–AIR TV 2016 / 2015 change (€ millions) 30/06/2016 30/06/2015 €m % Advertising revenue - non-Group 398.8 381.0 17.8 4.7% Advertising revenue - Group 4.6 5.7 (1.1) -19.8% Advertising agency cost, taxes and broadcasting costs (91.4) (9

  40. Slide 40: Questions & Answers

    QUESTIONS & ANSWERS

Métropole Télévision (M6 Group) — H1 2016 Earnings Presentation on 6ix