Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Groupe M6 — H1 2015 Earnings Presentation
41 slides from Metropole Television Sa's earnings presentation, Jul 28, 2015
Slide 1: Presentation of 2015 Half-Year Results
Presentation of 2015 Half–Year Results 28 July 2015
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 i
Slide 3: 2015 Half-Year Results Presentation
2015 HALF–YEAR RESULTS PRESENTATION M6 GROUP 1. KEY FIGURES 2. TELEVISION 3. PRODUCTION AND AUDIOVISUAL RIGHTS 4. DIVERSIFICATION 5. FINANCIAL STATEMENTS 6. APPENDICES 3
Slide 4: Key Figures
KEY FIGURES
Slide 5: 2015 first half-year highlights
1. KEY FIGURES 2015 first half–year highlights Solid M6 Group fundamentals Television TV market fragmentation process still ongoing Stable Group audience figures Increase in advertising revenue Production & Audiovisual Business seasonality rights Success of major releases Increase in operati
Slide 6: Solid M6 Group fundamentals
1. KEY FIGURES Solid M6 Group fundamentals 634.4 629.9 -0.7% 524.0 527.4 +0.6% 110.4 102.6 Key figures (€ m) -7.1% HY1 2014 64.6 58.3 HY1 2015 -9.7% CONSOLIDATED OPERATING EXPENSES CONSOLIDATED EBITA NET PROFIT REVENUE 17.4% 16.3% 10.2% 9.3% 6
Slide 7: Consolidated revenue of €629.9m, a slight decline of 0.7%
1. KEY FIGURES Consolidated revenue of €629.9 m, a slight decline of 0.7% Production & Television (€ m) Audiovisual Rights (€ m) Diversification (€ m) 411.8 408.1 +0.9% 170.7 169.4 -0.8% 55.4 48.6 -12.3% HY1 2014 HY1 2015 7
Slide 8: EBITA of €102.6m, down €7.9m
1. KEY FIGURES EBITA of €102.6 m, down €7.9 m Production & Television (€ m) Audiovisual Rights (€ m) Diversification (€ m) 79.7 79.1 +0.7% 31.2 O/w F.C.G.B: €5.6 m loss 21.4 -31.6% 3.8 2.7 +37.8% HY1 2014 HY1 2015 8
Slide 9: Television
Television
Slide 10: TV revenue increased slightly in a stable market
2. TELEVISION TV revenue increased slightly in a stable market +0.8% 377.8 381.0 +1.7% 30.3 30.8 Free-to-air channels advertising Other revenue (€ m) revenue (€ m) HY1 2014 HY1 2015 10
Slide 11: Stable EBITA
2. TELEVISION Stable EBITA TV EBITA HY1 2015 vs. HY1 2014 (€ m) +2.0 -1.3 -3.3 +2.1 79.1 79.7 Increase in HY1 2014 Impact of Increase in programming cost Savings on other HY1 2015 broadcasting costs costs revenue growth of free-to-air channels 11
Slide 12: Audience Figures
TELEVISION Audience Figures
Slide 13: M6 reported the best results of the historical broadcasting groups
2. TELEVISION – AUDIENCE FIGURES HY1 2015: M6 reported the best results of the historical broadcasting groups Audience shares of major groups’ free-to-air channels HY1 2014 Audience share 4+ (%) HY1 2015 +0.1pp 28,9 27,8 28,3 28,2 +1.5pps +0.1pp 13,3 13,4 11,7 -1.1pps -0.1pp 4,5 4,6 10,2 Other free-
Slide 14: HD DTT channels continued to grow at the expense of traditional channels
2. TELEVISION – AUDIENCE FIGURES HY1 2015: HD DTT channels continued to grow at the expense of the traditional channels 87 83 -0.7 pp 77 -1.3 pp 73 70 67 67 65.0 64.3 Traditional channels 63.0 Annual 4+ audience shares of major channel aggregates (in %) 35 35.5 37.0 “Other TV” 33 33 31 27 23 21 22 2
Slide 15: The M6 channel posted a slight decline in the first half of 2015
2. TELEVISION – AUDIENCE FIGURES The M6 channel posted a slight decline in the first half of 2015 -1.3pps HY1 2014 Audience share 4+ (%) HY1 2015 64,3 63,0 62,5 June 2015 -1.3pps +0.2pp -0.1pp -0.5pp 22,9 21,6 21,4 +0.2pp +0.2pp 14,0 14,2 9.9 9.8 10,1 14,3 9,5 9,0 9,0 2,7 2,9 2,3 2,0 2,2 2,1 TRADITI
Slide 16: M6 posted a stable evening performance
2. TELEVISION – AUDIENCE FIGURES M6 posted a stable evening performance Audience figures during the 9 pm-10.30 pm slot, Monday to Sunday (millions of viewers) Vs. HY1 2014 tf1 5,8 -0.2m° fr2 3,6 = m6 3 = fr3 2,7 = c+ 0,8 +0.1m° arte 0,7 = tnt 1e 5,7 -0.1m° cabsat 2 -0.2m° tnt hd 1,3 +0.4m° 16
Slide 17: M6's audience figures proved resilient
2. TELEVISION – AUDIENCE FIGURES Despite the launch of new DTT channels, M6’s audience figures proved resilient in the first half–year thanks to the effectiveness of strong brands and a number of new programmes performing well Challenging related to renewing Health of access prime time strong during
Slide 18: DTT Audience Figures
TELEVISION DTT Audience Figures
Slide 19: W9 2nd ranked on the commercial target
2. TELEVISION – DTT AUDIENCE FIGURES W9 2nd ranked on the commercial target Annual WRPs<50 audience shares of DTT channels (%) 4.3 4.2 4.0 4.1 4.3 3.9 3.7 3.7 3.9 4.0 3.7 3.3 3.6 3.6 3.6 3.2 3.0 3.1 2.5 2.7 2.5 2.9 2.5 2.5 2.8 2.7 2.0 2.4 2.1 2.1 2.4 1.8 1.9 1.5 1.2 1.4 1.2 1.5 1.1 0.6 2008 2009 201
Slide 20: W9 remained the most watched DTT channel during early prime time
2. TELEVISION – DTT AUDIENCE FIGURES Over the first half of 2015, W9 remained the most watched DTT channel during early prime time 798 000 787 000 764 000 Prime–time audience (9-10.30pm) 522 000 489 000 487 000 20
Slide 21: The new HD DTT channels achieved high ratings
2. TELEVISION – HD DTT AUDIENCE FIGURES The 6 new HD DTT channels achieved high ratings 8,0 95% 100% +4 WRPs<50 Equipment rate (% of households that own a TV) 93% 86% 90% 7,0 83% 6,6 7,3 7,3 7,3 80% 6,4 77% 77% 80% 5,9 6,0 72% 5,6 5,7 69% 66% 5,2 5,3 70% 63% 5,0 5,1 5,1 5,1 5,7 5,7 5,7 4,8 5,0 57% 4
Slide 22: 6ter is the leading new DTT channel amongst WRPs<50
2. TELEVISION – HD DTT AUDIENCE FIGURES HY1 2015: 6ter is the leading new DTT channels amongst WRPs<50 Audience share of the six new Audience share of the six new channels: 5.2% 4+ channels: 6.8% WRPs<50 1.9 1,7 1.7 1,3 1,1 1,2 1.0 1,0 0,7 0,7 0,5 0,5 0,3 22
Slide 23: Advertising
TELEVISION Advertising
Slide 24: M6 Group's net advertising revenue grew by 1.3%
2. TELEVISION - ADVERTISING M6 Group’s net advertising revenue grew by 1.3% in the first half of 2015 M6 Group net advertising Free–to–air channels revenue (€ m) +0.8% 377.8 381.0 +1.3% 400.4 405.6 Other operations Internet +8.9% 22.5 24.5 HY1 2014 HY1 2015 24
Slide 25: Production and Audiovisual Rights
PRODUCTION AND AUDIOVISUAL RIGHTS
Slide 26: A half year marked by a number of box office successes
3. PRODUCTION & AUDIOVISUAL RIGHTS A half year marked by a number of box office successes Revenue (€ m) EBITA (€ m) -12.3% MARGIN 55.4 48.6 +37.8% 7.8% 2.7 3.8 +2.8 pps HY1 2014 HY1 2015 Key data CINEMA VIDEO The success of Astérix A reduced line up offset the reduced line-up for the distribution di
Slide 27: Diversification
DIVERSIFICATION
Slide 28: Growth in profitability of diversification operations
4. DIVERSIFICATION 2011-2015: Growth in profitability of diversification operations Change in operating margin of Diversification operations (excl. F.C.G.B) +8.8pps over 5 years Operating margin equivalent to that of 22,4% the TV business 19,7% 13,4% 13,7% 10,9% HY1 2011-2014 HY1 2015 28
Slide 29: M6 Web confirmed its position with the acquisition of Oxygem
4. DIVERSIFICATION M6 Web confirmed its position as a major online force with the acquisition of Oxygem Revenue (€ m) EBITA (€ m) +11.4% MARGIN 45.0 50.1 -3.9% 33.5% 17.5 16.8 HY1 2014 HY1 2015 Key data M6 MOBILE INTERNET Thanks to the acquisition and integration of 2.8m customers Strong growth in a
Slide 30: Weak consumer spending impacted home shopping operations
4. DIVERSIFICATION Weak consumer spending impacted home shopping operations Revenue (€ m) EBITA (€ m) -6.2% MARGIN 88.7 83.2 -18.7% 10.0% 10.2 8.3 -1.5 pps down due to the decline in HY1 2014 HY1 2015 revenue Key data HOME SHOPPING SUCCESSFUL REFOCUSING OF CONTINUED SERVICE THE BUSINESS PORTFOLIO DE
Slide 31: F.C.G.B
4. DIVERSIFICATION F.C.G.B Investment in club players Key data HY1 2014 HY1 2015 Revenue (€ m) 32.0 32.3 Last 16 7th Group stage 7th Qualified for EBITA (€ m) 6th the preliminary round +0.2 Investment in football players 5.6 31
Slide 32: Financial Statements
FINANCIAL STATEMENTS
Slide 33: Condensed consolidated statement of comprehensive income
5. FINANCIAL STATEMENTS Condensed consolidated statement of comprehensive income for the six months to 30 June 2015 H1 2015 / 30 June 2014 (1) 30 June 2015 2014 change (€ m) Revenue 634.4 629.9 (4.5) Other operating revenue 4.0 4.5 0.5 Total operating revenue 638.4 634.5 (3.9) Materials and other op
Slide 34: Condensed balance sheet at June 2015
5. FINANCIAL STATEMENTS Condensed balance sheet at 30 June 2015 2015 / 2014 30 June 2014 (1) 31 December 2014 (1) 30 June 2015 change (€ m) Goodwill 71.9 72.7 89.7 16.9 Non-current assets 284.6 263.5 276.9 13.3 Current assets 674.4 666.0 713.9 48.0 Cash and cash equivalents 176.2 260.9 127.8 (133.1)
Slide 35: Cash flow statement for the six months to 30 June 2015
5. FINANCIAL STATEMENTS Cash flow statement for the six months to 30 June 2015 Change 30 June 2014 (1) 30 June 2015 (€ m) Self-financing capacity from operations 157.8 150.9 (6.9) WCR movements (56.6) (60.0) (3.4) Advances in respect of leases - (20.0) (20.0) Taxes (39.4) (31.9) 7.5 Cash flow from o
Slide 36: Questions & Answers
QUESTIONS & ANSWERS
Slide 37: Appendices
APPENDICES
Slide 38: M6 Group analytical consolidated income statement
6. APPENDICES M6 GROUP analytical consolidated income statement 2015/2014 change (€ millions) 30/06/2015 30/06/2014 €m % TV Revenue - Free-to-Air TV advertising 381.0 377.8 3.2 0.8% Revenue - Other TV 30.8 30.3 0.5 1.7% EBITA 79.7 79.1 0.6 0.7% Production and Audiovisual Rights Revenue 48.6 55.4 (6.
Slide 39: Segment contribution analysis
6. APPENDICES Segment contribution analysis TELEVISION 30/06/2015 30/06/2014 2015 / 2014 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 421.9 411.8
Slide 40: Analytical presentation of segment contributions
6. APPENDICES Analytical presentation of segment contributions Free–to–air TV 2015 / 2014 change (€ millions) 30/06/2015 30/06/2014 €m % Advertising revenue - non-Group 381.0 377.8 3.2 0.8% Advertising revenue - Group 5.7 5.7 0.0 0.7% Advertising agency cost, taxes and broadcasting costs (93.8) (91.
Slide 41: Presentation of 2015 Half-Year Results
Presentation of 2015 Half–Year Results 28 July 2015