Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Groupe M6 — H1 2023 Earnings Presentation
38 slides from Metropole Television Sa's earnings presentation, 2023
Slide 1: Presentation of Half-Year Results 2023
PRESENTATION OF HALF-YEAR RESULTS 2023
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 past performance should not be interpreted as an indicat
Slide 3: Contents
1. INTRODUCTION 2. OPERATIONS 3. FINANCIAL STATEMENTS 4. OUTLOOK
Slide 4: 01. Introduction
IAC'ESTLAVIE IA CESTLAVIE
Slide 5: H1 2023 Highlights
H1 2023 HIGHLIGHTS authorised to continue broadcasting on DTT for 10 years INTRODUCTION War in Transaction involving Ukraine GSG’s share capital Cost optimisation Inflation Disposal of CTZAR 5
Slide 6: Decline in advertising revenue impacted Group EBITA
THE DECLINE IN ADVERTISING REVENUE IMPACTED GROUP EBITA WITHIN A WEAKER MACRO-ECONOMIC ENVIRONMENT KEY FIGURES (€ millions) -4.4%* H1 2019 H1 2022 H1 2023 664.2 -4.9% 714.6 650.4* 621.9 -3.2% 539.3 566.3 530.1 504.3 -16.2% +14.5% INTRODUCTION 503.0 486.9 d 161.1 148.3 106.5 135.0 93.0** 88.4 CONSOLI
Slide 7: 02. Operations
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Slide 8: Linear TV Audience Figures
LINEAR TV AUDIENCE FIGURES LINEAR TV AUDIENCE FIGURES
Slide 9: TV remains the most powerful media
Daily viewing time for TV and Other Formats by individual with a TV Other LINEAR TV AUDIENCE FIGURES formats DAILY TV channels VIEWING TIME HAS More than a third of time spent in front of DECLINED Total audience 25-49 a TV screen is spent on ”other TV REMAINS +3min formats” THE MOST 22% 23% 24% 34%
Slide 10: M6 Group strengthened its presence across all environments
LINEAR TV AUDIENCE FIGURES WITHIN THIS CHANGING LANDSCAPE, M6 GROUP HAS STRENGTHENED ITS PRESENCE ACROSS ALL ENVIRONMENTS No 1 platform for 25-49-year-olds No 2 platform for 25-49-year-olds LINEAR TV STREAMING /AVOD SOCIAL MEDIA Source: Médiamétrie / Médiamat – Internet Overall Analysis, Video Analy
Slide 11: M6 is one of the groups that has held up best on 25-49 target
M6 IS ONE OF THE GROUP THAT HAS HELD UP BEST ON THE 25–49-YEAR-OLD TARGET Adverse impact of an ageing audience in the over 4s category LINEAR TV AUDIENCE FIGURES Audience shares of the groups* Audience share 4+ 25-49 AUDIENCE SHARE 29,6 29,6 30,5 30,1 30,2 + 0.1pp 29,2 27,5 28,6 28,6 = 26,7 27,0 26,
Slide 12: W9 remains in the top 3 DTT channels for 25-49
4+ audience share (%) 3,6 H1 2022 3,2 3,1 LINEAR TV AUDIENCE FIGURES 2,8 2,9 3,0 H1 2023 2,4 2,3 2,1 2,2 2,0 2,0 1,8 1,9 1,6 1,7 1,6 1,7 1,7 1,7 1,5 1,5 1,5 1,5 W9 REMAINS IN 1,2 1,2 1,1 1,1 1,2 1,2 1,0 1,0 0,9 0,8 THE TOP 3 DTT CHANNELS FOR 25-49-YEAR- OLDS, WITH 25-49 audience share (%) 6TER AND G
Slide 13: M6 in tune with French viewers
M6 – THE CORNERSTONE OF ENTERTAINMENT WITH STRONG AND ESTABLISHED BRANDS…. LINEAR TV AUDIENCE FIGURES M6 IN TUNE WITH FRENCH VIEWERS 13% 17% 25-49 25-49 3:00-3:00 In primetime (21:10-23:00) 25% 25% 23% 22% 25-49 25-49 25-49 25-49 THE GROUP’S STRENGTH LIES IN ITS M6 clear leader M6 clear leader M6 cl
Slide 14: In tune with French viewers' concerns with rich news programming
IN TUNE WITH FRENCH VIEWERS’ CONCERNS WITH A RICH AND VARIED NEWS PROGRAMMING LINEAR TV AUDIENCE FIGURES M6 IN TUNE WITH FRENCH VIEWERS 21% 18% 21% 13% 17% 25-49 25-49 25-49 25-49 25-49 3:00-3:00 In primetime (21:10-23:00) Best season for Best season for 2nd best season 25 years 15 years ever THE GR
Slide 15: Success across all DTT channels
LINEAR TV AUDIENCE FIGURES BEST WAVE SUCCESS IN THE TOP 3 EVER ACROSS ALL DTT CHANNELS MOST-WATCHED PAY TV AUDIENCES THANKS TO THE GROUP’S 2ND BEST CLEAR GROWTH SEASON EVER IN AUDIENCE DIVERSE RANGE AMONGST 25- FIGURES TOP KIDS OF CHANNELS 49 YEAR OLDS CHANNEL IN BEST WAVE IN NEW 4 YEARS GENERATION
Slide 16: Non-Linear Audiences
NON-LINEAR AUIENCES NON-LINEAR AUDIENCES
Slide 17: 6play continues to strengthen its offer
DURING H1 2023 16.6 m LEADER The catch-up NON-LINEAR AUIENCES platform with the 53% users on average on free platforms per month during in terms of time 1hr YOUNGEST under 50s audience share H1 2023 CONTINUES TO spent per user per day AUDIENCE STRENGTHEN ITS OFFER AND CAN THE PLATFORM CAN LEVERAGE T
Slide 18: Radio Audience Ratings
RADIO AUIENCE RATINGS RADIO AUDIENCE RATINGS
Slide 19: Radio division maintained its position as leader among commercial groups
Year-on-year change in audience share H1 2022 H1 2023 RADIO AUIENCE RATINGS -0.2pp THE RADIO DIVISION MAINTAINED ITS 18,2 18,0 -0.2pp POSITION AS LEADER 12,7 12,5 AMONGST THE COMMERCIAL -0.3pp +0.2pp RADIO GROUPS 3,1 2,8 2,4 2,6 Source: Médiamétrie National Radio Audience Study, January-June 23 vs J
Slide 20: Improvement on commercial targets
Year-on-year change in audience share 25–49- 25–59- year-olds year-olds RADIO AUIENCE RATINGS IMPROVEMENT ON COMMERCIAL H1 2022 H1 2023 H1 2022 H1 2023 TARGETS 15,1% 15,3% 16,7% 16,9% Source: Médiamétrie National Radio Audience Study, January-June 23 vs January-June 22, M6 Publicité Radio combined,
Slide 21: RTL is the leading radio station in France
19.2m listeners 13.1M RADIO AUIENCE RATINGS tune in each month RTL IS THE listeners tune in each week LEADING RADIO STATION IN FRANCE 19,23 FOR WEEKLY AND MONTHLY 17,25 COVERAGE 16,95 15,79 15,03 Source: Médiamétrie Radio Audience Study > Insights, January- March 2023, over 13s, 05:00-24:00, Mon-Fri
Slide 22: Continued growth of the digital radio audience
Growth in total digital radio audience compared with M6 Group radio audience +7.7 pp over 5 years 19,9% RADIO AUIENCE RATINGS 18,6% 17,4% 15,0% 13,6% CONTINUED Radio market 12,2% GROWTH OF THE DIGITAL RADIO AUDIENCE Jan.-March Jan.-March Jan.-March Jan.-March Jan.-March Jan.-March 2018 2019 2020 202
Slide 23: Advertising Market
ADVERTISING MARKET MARKET ADVERTISING
Slide 24: Decline in advertising market
TV ADVERTISING M6 Group net REVENUE advertising revenues (€ m) 455.3 427.8 DECLINE IN ADVERTISING MARKET H1 2023: 530.1 ADVERTISING 504.3 REVENUE H1 2022 H1 2023 - TV impacted by a weaker economic environment: Other operations • Q1 dipped by 2.4% • Steeper decline of 9.4% over Q2 74.8 76.5 - Radio d
Slide 25: Segment Analysis
SEGMENT ANALYSIS
Slide 26: TV – Key Figures
Revenue (€ m) EBITA (€ m) 270.5* TV 526.3 496.1 129.0 SEGMENT 99.0 TV – KEY FIGURES DECLINE IN ADVERTISING H1 2022 H1 2023 REVENUE HIT H1 2022 H1 2023 EBITA Operating margin 24.5% 20.0% from recurring operations Decline in Stable costs advertising following revenues reinvestment in non- linear progr
Slide 27: Radio – Key Figures
Revenue (€ m) EBITA (€ m) 270.5* 74.6 78.3 RADIO 18.5 SEGMENT RADIO – KEY FIGURES 13.3 MOMENTUM OF ADVERTISING H1 2022 H1 2023 H1 2022 H1 2023 MARKET AND Operating margin from recurring 17.9% 23.7% ONGOING EFFORTS operations TO CONTROL COSTS Synergies Cost control Increase with other (Cessation of i
Slide 28: Production & Audiovisual Rights
Revenue (€ m) EBITA (€ m) PRODUCTION PRODUCTION & AUDIOVISUAL RIGHTS 40.1 & AUDIOVISUAL 27.3 RIGHTS 26.7 12.2 11.4 10.3 H1 2019 H1 2022 H1 2023 H1 2019 H1 2022 INCREASE IN H1 2023 REVENUE Margin from recurring operations DUE TO THE MOMENTUM OF 19.8% 45.6% 37.9% THE SND RIGHTS +18.1 pp TRANSFER BUSIN
Slide 29: Diversifications
Revenue (€ m) 102.5 36.1 DIVERSIFICATION Discontinued operations Revenue 22.3* 19.7 impact: H1 2019 H1 2022 H1 2023 Disposed of on 30/11/2022 €13.8 m DIVERSIFICATIONS EBITA (€ m) Continuing operations STRONG GROWTH IN EBITA, Performance REFLECTING THE maintained over the half- MOMENTUM OF THE year d
Slide 30: Equity-accounted entities
EQUITY-ACCOUNTED ENTITIES Share of profit of joint H1 22 / H1 23 ventures and associates Nature of change (€ m) operations %held (€ m) DIVERSIFICATIONS Tech Continued 4.3 streaming 50% -8.8 investment in Tech Discontinuation on 27/03 and provision SVOD 33.3% +12.0 established for all the winding up
Slide 31: 03. Financial Statements
é ENQUETCR 03. FINANCIAL STATEMENTS hy sPOrt FAC'ESTLAVIE
Slide 32: Condensed Consolidated Statement of Comprehensive Income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME H1 2023/2022 M6 Group 30 June 2022 restated* 30 June 2023 change (€ m) Revenue 664.2 621.9 (42.3) FINANCIAL STATEMENTS Other operating revenues 8.5 5.6 (2.9) Total operating revenues 672.7 627.5 (45.1) Materials and other operating expenses (3
Slide 33: Condensed Balance Sheet
CONDENSED BALANCE SHEET 2023 / 2022 change M6 Group 31 December 2022 30 June 2023 (€ m) FINANCIAL STATEMENTS Goodwill 299.3 299.3 - Non-current assets 588.6 594.0 5.3 Current assets 724.4 709.7 (14.7) Cash and cash equivalents 374.8 305.0 (69.8) TOTAL ASSETS 1,987.2 1,908.0 (79.2) Equity - Group sha
Slide 34: Cash Flow Statement
CASH FLOW STATEMENT 2023 / 2022 M6 Group 30 June 2022 30 June 2023 change (€ m) Self-financing capacity from operations 194.3 180.3 (14.0) Operating WCR movements (43.0) (23.2) 19.8 FINANCIAL STATEMENTS Income tax (49.0) (36.2) 12.8 Cash flow from operating activities 102.3 120.8 18.6 Cash flow from
Slide 35: CSR within M6 Group
CSR WITHIN M6 GROUP CSR indicators over H1 2023 64% of employees have CSR developments FINANCIAL STATEMENTS completed Climate Fresco training (x1.5 vs 31/12/2022) during H1 2023 71 employees trained in green production Ongoing training of employees on the climate (x1.3 vs 31/12/2022) fresco and gree
Slide 36: 04. Outlook
wis / KA C’ESTLAVIE
Slide 37: Outlook H2 2023 Targets
Strengthen our AVOD platform H2 2023 Grow the business within an uncertain economic environment TARGETS OUTLOOK Continue to invest in content production Support the development of diversifications and find new growth drivers 37
Slide 38: Questions & Answers
UESTIONS KAC'ESTLAVIE