Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — FY2015 Earnings Presentation
50 slides from Metropole Television Sa's earnings presentation, Feb 23, 2016
Slide 1: Presentation of 2015 Annual Results
23 FEBRUARY 2016 PRESENTATION OF 2015 ANNUAL RESULTS
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: Presentation of 2015 Annual Results
PRESENTATION OF 2015 ANNUAL RESULTS M6 GROUP 1. INTRODUCTION 2. TELEVISION 3. PRODUCTION AND AUDIOVISUAL RIGHTS 4. DIVERSIFICATION 5. FINANCIAL STATEMENTS 6. OUTLOOK 7. APPENDICES 3
Slide 4: Introduction
INTRODUCTION
Slide 5: Relevance of Group Strategic Model
INTRODUCTION RELEVANCE OF GROUP STRATEGIC MODEL CONTENT CONTENT BROADCASTING ACQUISITION & PRODUCTION DIGITAL ACTIVITIES At the heart of our business: Testing and positioning Safeguarding content our TV channels ourselves on new uses supply for our TV channels by moving up the value chain DIVERSIFIC
Slide 6: The Group's DNA
INTRODUCTION THE GROUP'S DNA FINANCIAL ADAPTABILITY INNOVATION DISCIPLINE 6
Slide 7: Adaptability
INTRODUCTION ADAPTABILITY 2014 2012 2012 2008 2005 Launch of Rollout of Launch of A video posted on Digital’s DTT broadband HD DTT YouTube exceeds advertising market across France 2 billion views share overtakes that of print 7
Slide 8: Innovation
INTRODUCTION INNOVATION In 2015… PROGRAMME ADVERTISING TECHNOLOGICAL INNOVATION INNOVATION INNOVATION ADaptive Mid-breaks Augmented reality SMART 6TEM Weather M6 forecast Exchange 8
Slide 9: Financial Discipline
INTRODUCTION FINANCIAL DISCIPLINE Operating profitability Group EBITA (€ m) of the TV division 242.2 245.0 218.5 211.1 207.5 200.2 194.0 190.3 24.1% 22.6% 20.4% 19.8% 18.5% 18.0% 17.7% 18.9% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 9
Slide 10: Self-financed Growth and Content Supply Safeguarded
INTRODUCTION SELF−FINANCED GROWTH AND CONTENT SUPPLY SAFEGUARDED Cash flow from operating activities (€ m) 320 296 271 253 195 241 218 226 194 202 188 157 149 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Inventories & similar items 10
Slide 11: 2015 Key Figures
2015 KEY FIGURES
Slide 12: A Solid Performance
INTRODUCTION – KEY FIGURES A SOLID PERFORMANCE -0.6% Key figures (€m) 2014 1,257.9 2015 1,249.8 - 0.2% 1,063.4 1,060.9 - 3.5% 207.5 200.2 - 6.8% 123.2 114.9 CONSOLIDATED CONSOLIDATED REVENUE OPERATING EXPENSES NET PROFIT EBITA 16.5% 16.0% 9.8 % 9.2% 12
Slide 13: A Successful TV Business
INTRODUCTION – KEY FIGURES A SUCCESSFUL TV BUSINESS Prod & Television Audiovisual Rights Diversification Other Total +€8.9M +€0.7M Change in revenue -€17.8M €0M -€8.2M 2015 vs 2014 +€11.7M Change in EBITA -€3.3M -€12.8M -€2.9M -€7.2M 2015 vs 2014 13
Slide 14: Television
TELEVISION
Slide 15: M6 Group Gained Ground in 2015
TELEVISION - AUDIENCES M6 GROUP GAINED GROUND IN 2015 FREE TO AIR AUDIENCE FIGURES 4+ audience share (%) 2014 2015 -1.0pp +0.3pp +0.2pp +1.2pp 28,7 27,7 28,3 28,6 +0.2pp 13.4 13.6 12,0 10,8 4,5 4,7 Other free-to-air channels** * WRP<50 audience share (%) 2014 2015 - 0.7pp +0.5pp - 0.4pp 32,7 32,0 +1
Slide 16: M6 Channel Proved Resilient in a Fragmenting Market
TELEVISION - AUDIENCES 2015: M6 CHANNEL PROVED RESILIENT IN A MARKET THAT KEEPS FRAGMENTING 4+ audience share (%) 2014 2015 -1.6pp 64,5 62,9 - +0.2p 1.5pp - - p +0.2p 0.2pp 0.2pp = 22,9 21,4 p 14,1 14,3 10.1 9.9 9,4 9,2 2,6 2,6 2,0 2,2 TRADITIONAL CHANNELS -2.6pp WRP<50 audience share (%) 2014 2015
Slide 17: M6 Consolidated Position as 2nd Largest Channel Among Under 50s
TELEVISION - AUDIENCES 2015: M6 CONSOLIDATED ITS POSITION AS THE 2ND LARGEST CHANNEL AMONGST THE UNDER 50S Gradual renewal of New prime time Access brands successfully launched Prime Time Growth for Lifestyle magazines 4 “traditional” brands remain safe bets Both news bulletins in robust health 17
Slide 18: DTT Audiences
TELEVISION DTT AUDIENCES
Slide 19: W9 Leading DTT Channel for the Under 50s
TELEVISION - DTT AUDIENCES W9 LEADING DTT CHANNEL FOR THE UNDER 50S +0.7pp 4+ audience share (%) 2014 2015 20.9 21.6 +0.1pp = = - 0.1pp +0.2pp - 0.2pp +0.1pp = 3,3 3,4 2.6 2.6 3,1 3,1 1,9 1,8 1,8 2,0 1,8 1,6 1,6 1,7 1,2 1,2 1ST GENERATION DTT +1.0pp 4−49 yrs audience share (%) 2014 2015 26.1 27.1 =
Slide 20: W9 Remains Leading DTT Channel for Under 50s
TELEVISION - DTT AUDIENCES 2015: W9 REMAINS THE LEADING DTT CHANNEL FOR THE UNDER 50S AND GAINED SIGNIFICANT GROUND AMONGST THE WP<50 Major success for the WOMEN’S Strong performance of FOOTBALL WORLD CUP CINEMA 1.0M on average Access primetime productions in good health New record for DTT 4.1M° 20
Slide 21: Puissance TNT Is the Leading DTT Service
TELEVISION - DTT AUDIENCES PUISSANCE TNT IS THE LEADING DTT SERVICE 2015 audiences (WRP<50) The leading DTT advertising service 4.1% 3.6% Stable down 0.1pp year on year year on year 21
Slide 22: Success of 6ter, Leading HD DTT Channel
TELEVISION – HD DTT AUDIENCES SUCCESS OF 6TER IN 2015, THE LEADING HD DTT CHANNEL ON THE COMMERCIAL TARGET Audience share of the 6 new channels: Audience share of the 6 new channels : 5.5% 4+ 7.0% WRP<50 +0.8pp 2.1 1,8 +0.4pp 1.3 1,2 1,1 1,2 0,9 0.7 0,8 0.6 0.6 0,3 22
Slide 23: 2015: 6ter Had a Very Good Year
TELEVISION - DTT AUDIENCES 2015: 6TER HAD A VERY GOOD YEAR (UP 0.4PP 4+) Successful progression from morning Cinema to afternoon programming box office throughout success the year of US blockbusters and films for younger audiences Success of Success of original STORAGE WARS US productions over the f
Slide 24: Cab Sat Audiences
TELEVISION CAB SAT AUDIENCES
Slide 25: Paris Première and Téva Among Most Popular Pay-TV Channels
TELEVISION - CAB SAT AUDIENCES PARIS PREMIÈRE AND TÉVA ARE AMONGST THE MOST POPULAR PAY−TV CHANNELS, IN A HIGHLY COMPETITIVE ENVIRONMENT Best known Top ranked pay channel among the pay channel general among WRP<50 public* 2015 nationwide audience shares 2015 nationwide audience shares (excl. summer)
Slide 26: Advertising Market
TELEVISION ADVERTISING MARKET
Slide 27: Declining Multimedia Advertising Market, Television Gaining Share
TELEVISION - ADVERTISING MARKET IN A DECLINING MULTIMEDIA ADVERTISING MARKET IN 2015, TELEVISION CONTINUED TO GAIN MARKET SHARE AND SAW ITS REVENUES GROW BY APPROXIMATELY 0.5% Estimate of the 2015 multimedia advertising market by media – (€ billions) % change –IREP data dated 29/01/2016 -0.9% 10.2 +
Slide 28: M6 Group's Advertising Revenues Grew by 2.1% in 2015
TELEVISION - ADVERTISING MARKET M6 GROUP’S ADVERTISING REVENUES GREW BY 2.1% IN 2015 Free–to–air channels M6 Group net advertising revenues (€m) +1.6% +2.1% 750.1 762.0 796.9 813.9 Other operations Internet +10.9% 46.9 52.0 28 2014 2015
Slide 29: Free-to-air Channels' Advertising Market Share Increased
TELEVISION - ADVERTISING MARKET M6 GROUP'S FREE–TO–AIR CHANNELS SAW THEIR ADVERTISING MARKET SHARE INCREASE BY 0.2 PERCENTAGE POINTS IN 2015 Growth in net TV advertising market share of M6 Group's free–to–air channels since 2010 - In % * +1.2pp 23,7% 23,3% 23,5% 22,3% 22,4% 22,7% 2010/2014 2015 29
Slide 30: A Successful TV Business
TELEVISION A SUCCESSFUL TV BUSINESS TV EBITA 2015 vs. 2014 (€ m) +5.7 +10.3 -2.8 -1.6 155.7 144.0 Free- to- air TV 2014 advertising Programming Broadcasting Other costs 2015 costs of free- to- costs market revenues air channels (EBITA impact) 30
Slide 31: Production and Audiovisual Rights
PRODUCTION AND AUDIOVISUAL RIGHTS
Slide 32: Box Office Success of Our Co-Productions
PRODUCTION & AUDIOVISUAL RIGHTS A YEAR MARKED BY THE BOX OFFICE SUCCESS OF OUR CO−PRODUCTIONS 2014 2015 SND -15.9% A reduced box office line up A limited video release 111.4 11.8M schedule 93.6 despite the 8.1M success of Astérix 2014 2015 Admissions Revenue (€ m) -31.8% A year of 1 Les Nouvelles av
Slide 33: Diversification
a @ \< S > DIVERSIFICATION = =e
Slide 34: M6 Web Is Investing in New Media
DIVERSIFICATION M6 WEB IS INVESTING IN NEW MEDIA 2014 2015 +13.7% 91.7 104.3 The Group continued to adapt to new ways of using digital: 2.7M customers at end December 2015 MCNs Launch of new Revenue (€ m) Ten years of on- demand channels partnership -2.4% Launch of the Launch of an new 6 play advert
Slide 35: Ventadis: A Year of Transition
DIVERSIFICATION VENTADIS: A YEAR OF TRANSITION 2014 2015 -10.1% 175.4 157.7 Ongoing renewal of Continued our product range integration of Home Shopping Service Best of TV Revenue (€ m) suffered from the weak Best of TV confirmed as macroeconomic environment the second largest contributor to the divi
Slide 36: F.C.G.B Investment in Players
DIVERSIFICATION F.C.G.B INVESTMENT IN PLAYERS 2014 2015 A year of transition ahead of 2016 64.4 (full effect of new stadium and mid- year effect of TV rights) 55.1 Investment in players Group stage 7th Revenue (€ m) Failed to qualify 6th EBITA (€ m) 9th (at 14/02/2016) Group stage -7.2 -10.6 36
Slide 37: Financial Statements
FINANCIAL STATEMENTS
Slide 38: Condensed Consolidated Statement of Comprehensive Income
FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2015 / 2014 M6 Group 31 December 2014 31 December 2015 change (€ millions) Revenue 1,257.9 1,249.8 (8.2) Oher operating revenues 12.9 11.3 (1.6) Total operating revenues 1,270.8 1,261.1 (9.7) Materials and other operating
Slide 39: Condensed Balance Sheet
FINANCIAL STATEMENTS CONDENSED BALANCE SHEET 2015 / 2014 M6 Group 31 December 2014 (1) 31 December 2015 change (€ millions) Goodwill 72.7 89.7 17.0 Non-current assets 263.5 287.2 23.7 Current assets 666.0 654.6 (11.4) Cash and cash equivalents 260.9 175.8 (85.1) TOTAL ASSETS 1,263.1 1,207.4 (55.8) G
Slide 40: Cash Flow Statement
FINANCIAL STATEMENTS CASH FLOW STATEMENT Change M6 Group 31 December 2014 31 December 2015 (€ millions) Self-financing capacity from operations 332.7 318.2 (14.5) Operating WCR movements (43.8) (65.2) (21.4) Advances on leases - (20.0) (20.0) Income tax (87.1) (76.2) 10.9 Cash flow from operating ac
Slide 41: Dividend Maintained at €0.85 per Share
FINANCIAL STATEMENTS DIVIDEND MAINTAINED AT €0.85 PER SHARE 2,5 € 17% 15,7% 15% 2,0 € 13,1% 13% 1,00 € 11% 1,50 € 1,5 € 8,7% 9% 7,2% 5,5% 5,5% 5,4% 7% 5,1% 4,7%* 1,0 € 5% 1,00 € 96% 93% 76%** 1,00 € 82% 0,85 € 3% 0,5 € 79% 0,85 € 84% 0,85 € 0,85 € 87% 0,85 € 1% 0,0 € -1% 2009 2010 2011 2012 2013 201
Slide 42: Outlook
OUTLOOK
Slide 43: 2016 Challenges
OUTLOOK 2016 CHALLENGES CONTENT CONTENT BROADCASTING ACQUISITION & PRODUCTION DIGITAL ACTIVITIES Consolidate audiences Adapt to new TV consumption patterns Maintain Make Euro Continue to develop our advertising 2016 a ratings production market shares and activities commercial success Develop web- sp
Slide 44: A Successful Start to 2016
OUTLOOK A SUCCESSFUL START TO 2016 Audience share 4+ (%) +0.3pp 2015 Jan-16 +0.2pp 13,6 13,9 +0.1pp 9,9 10,1 = 1,1 1,2 2,6 2,6 +0.8 Audience share WRP<50 (%) pp 2015 Jan-16 +0.5pp 21,3 22,1 15,4 15,9 +0.2pp +0.1pp 2,1 2,2 3,8 4,0 44
Slide 45: Appendices
APPENDICES
Slide 46: Analytical Consolidated Income Statement
APPENDICES ANALYTICAL CONSOLIDATED INCOME STATEMENT 2015/2014 change (€ millions) 31/12/2015 31/12/2014 (€ millions) % TV Revenue - advertising 780.5 769.4 11.1 1.4% Revenue - other operations 41.6 43.8 (2.2) -5.0% Profit from recurring operations (EBITA) 155.7 144.0 11.7 8.1% Production & Audiovisu
Slide 47: Segment Contribution Analysis
APPENDICES SEGMENT CONTRIBUTION ANALYSIS TELEVISION 31/12/2015 31/12/2014 2015/2014 change Business Business Business segment External segment External segment External (€ millions) EBITA EBITA EBITA total revenue total revenue total revenue revenue revenue revenue Total TV division 842.4 822.1 155.
Slide 48: Analytical Presentation of Free-to-air TV Segment Contributions
APPENDICES ANALYTICAL PRESENTATION OF THE CONTRIBUTIONS OF THE FREE–TO–AIR TV SEGMENT 2015/2014 change (€ millions) 31/12/2015 31/12/2014 (€ millions) % External advertising revenues 762.0 750.1 11.9 1.6% Intra-Group advertising revenues 10.5 11.4 (0.9) -8.0% Advertising agency costs, operating taxe
Slide 49: Questions & Answers
QUESTIONS & ANSWERS
Slide 50: Presentation of 2015 Annual Results
23 FEBRUARY 2016 PRESENTATION OF 2015 ANNUAL RESULTS
Métropole Télévision (M6 Group) — FY2015 Earnings Presentation on 6ix