Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — Groupe M6 — FY2022 Earnings Presentation
50 slides from Metropole Television Sa's earnings presentation, 2023
Slide 1: Presentation of Annual Results
PRESENTATION OF 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: Introduction, Operations, Financial Statements, Outlook
1 INTRODUCTION 2 OPERATIONS FINANCIAL 3 STATEMENTS 4 OUTLOOK
Slide 4: Introduction
CTION INTRODLU INTRODUCTIO
Slide 5: Rising to the challenges of a market undergoing huge transformation
RISING TO THE CHALLENGES OF A MARKET UNDERGOING HUGE TRANSFORMATION WITH THE BOLDNESS AND AGILITY THAT HAVE BEEN 1 Strategic priority: the Group’s core business M6’S HALLMARK FOR 35 YEARS 2 Continued development of Uncertain macro- synergies within the TV and economic environment Radio divisions Gra
Slide 6: 2022 Highlights, celebrating 35 years
2022 HIGHLIGHTS CELEBRATING 35 YEARS Ukraine Consolidation Crisis of Salto: provision made for our share of the costs related to a Inflation Disposal of possible winding up * Excluding government support
Slide 7: Key figures
2019 2019 1,456.1 284.4 REVENUE EBITA 2022 2022 2022 vs 2019 1,356.9 336.2 2022 vs 2019 2022 KEY FIGURES 24,6% 23,5% OPERATING 21,3% 19,5% MARGIN 18,7% 2018 2019 2020 2021 (*) 2022 (*) * Excluding government support
Slide 8: The Group's performance was steady despite an uncertain macro-economic environment
THE GROUP’S PERFORMANCE WAS STEADY DESPITE AN UNCERTAIN MACRO-ECONOMIC ENVIRONMENT KEY FIGURES (€ millions) -2.4% 2019 2021 2022 -4.7% 1,456.1 1,390.4 1,356.9 -2.2% 1,171.7 1,107.9 1,137.4 +2.4%* 1,083.6 1,043.7 1,020.6 346.7 -40.9% 336.2 d 326.7* 334.4* 280.8 284.4 171.9 165.9 CONSOLIDATED ADVERTIS
Slide 9: Decline in advertising revenues partially offset by cost flexibility
THE DECLINE IN ADVERTISING REVENUES AND THE ENDING OF GOVERNMENT SUPPORT WERE PARTIALLY OFFSET BY COST FLEXIBILITY AND THE CONSOLIDATION OF STÉPHANE PLAZA IMMOBILIER. EXCLUDING GOVERNMENT SUPPORT, EBITA INCREASED TELEVISION RADIO PRODUCTION & DIVERSIFICATION OTHER TOTAL AUDIOVISUAL RIGHTS 2022 VS 20
Slide 10: CSR news in 2022
ROLLOUT OF THE CSR STRATEGY 6 key priorities rolled out across M6 Group divisions and employees: CSR news in 2022 Signing of the “Media Climate Agreement” Return of the carbon assessment Introduction of an energy sobriety plan
Slide 11: Linear TV audience figures
LINEAR TV AUDIENCE FIGURES
Slide 12: Gradual decline in TV ownership and traditional TV consumption
GRADUAL DECLINE IN TV OWNERSHIP AND TRADITIONAL TV CONSUMPTION… THE SHAPE TV OWNERSHIP AMONGST THE OF THE FRENCH POPULATION TRADITIONAL TV ENVIRONMENT 91% INDIVIDUAL VIEWING TIME IS CHANGING 4h16 – ALL FORMATS: The reduction in individual Total -2pp viewing time is due to the vs 2019 +9min vs 2019 a
Slide 13: Decline in traditional TV masks an increase in other formats
… WHICH MASKS AN INCREASE IN Other OTHER formats FORMATS TV channels THE SHAPE OF THE TRADITIONAL TV ENVIRONMENT Total 15-49 IS CHANGING audience year olds The reduction in individual 15% 20% viewing time is due to the 24% 33% decline in traditional TV 0:36 0:52 consumption and the fall in 0:46 popu
Slide 14: Breakdown of time spent: TV screen and online screens
TV SCREEN + ONLINE SCREENS BREAKDOWN OF TIME SPENT THE SHAPE OF THE Total 15-49 TRADITIONAL TV audience year olds ENVIRONMENT TV = 1.3X TV = 2.7X IS CHANGING higher than higher than YouTube + SVOD combined YouTube + SVOD combined The decline in TV consumption is favouring other formats. 02:25 03:07
Slide 15: The Group is stepping up its presence across all markets
THE GROUP IS STEPPING UP ITS PRESENCE ACROSS ALL MARKETS THE SHAPE OF THE TRADITIONAL TV +24M FRENCH PEOPLE REACHED EVERY DAY ACROSS ALL 4 SCREENS ENVIRONMENT IS CHANGING LIVE AVOD / TV SOCIAL SVOD These changes are favouring MEDIA other viewing formats in which the Group is consolidating its positi
Slide 16: 2nd largest group on the commercial target
28,7 28,1 4+ 26,6 27,2 13, 5 14,3 7,2 6,8 2022 2ND LARGEST 33,6 GROUP 33,5 WRP<50 22, ON THE COMMERCIAL 3 22,8 TARGET 14,6 15,5 6,6 5,9 2021 2022 Source: Médiamétrie / Médiamat
Slide 17: Best ever year for the Group in primetime
BEST EVER YEAR WRP<50 FOR THE GROUP IN THE STRATEGIC PRIMETIME SLOT PRIMETIME (21.10 -23.00) 2022 27,2 2ND LARGEST 24,7 24,6 25,1 26,6 GROUP 22,7 24,6 24,3 ON THE 23,6 22,4 COMMERCIAL TARGET 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Along with the 20:00-21:00 slot, they account for almost 60
Slide 18: M6: only leading traditional channel to post growth in primetime
2022: M6 WAS THE ONLY LEADING TRADITIONAL CHANNEL TO POST GROWTH IN PRIMETIME WRP<50 M6 - MOST 27,0 POPULAR 27,9 CHANNEL 19,5 AMONGST 19,2 FRENCH PEOPLE 8,3 POSTING GROWTH 8,5 IN THE STRATEGIC PRIMETIME SLOT 3,9 4,1 2021 2022 Source: Médiamétrie / Médiamat – Primetime slot: 21:10-23:00
Slide 19: M6 - most popular channel amongst French people
THROUGH ITS CULT BRANDS M6 REMAINS A GOLD STANDARD FOR NEWS M6 - MOST 15 year high POPULAR for WRP<50 Best ever season Highest Second Best ever season 20% WRP<50 / 2.2 M WRP<50 audience best season WRP<50 CHANNEL 32% WRP<50 in 5 years 32% WRP<50 ever among under 50s 26% <50 27% WRP<50 AMONGST 3.0 M
Slide 20: The success of DTT and pay channels
THE SUCCESS OF DTT AND PAY CHANNELS CONTRIBUTES TO THE GROUP’S POWER W9, 6TER and GULLI: some of the most powerful DTT channels amongst the WRP<50 commercial target 4,7 4,5 3,6 3,8 3,4 3,4 2021 2022 2,9 3,2 2,9 2,7 2,6 2,6 2,6 2,4 1,9 1,7 1,7 1,8 1,7 1,6 1,5 1,5 1,5 1,4 1,1 1,2 0,9 1,0 0,9 1,0 0,3 0
Slide 21: The success of DTT and pay channels contributes to the Group's popularity
Puissance TNT*: synchronising screens Most popular DTT 3.6% channel amongst French people WRP<50 Best year in primetime Most successful launch of a reality show amongst WRP<50 for 4 years THE 2nd best year ever WRP<50 SUCCESS OF 2.7% Leader in HD DTT since its launch 10 years ago Best ever year amon
Slide 22: Non-linear audience ratings
NON-LINEAR AUDIENCE RATINGS
Slide 23: 6play is the Group's strategic priority for a young audience
The most popular on-demand platform with the under 50s IN A CHANGING 56% of the audience is ENVIRONMENT under 50 6PLAY IS THE GROUP’S STRATEGIC PRIORITY FOR A YOUNG AUDIENCE Leading free platform in terms of time spent by user 1h03 The Group is stepping up its 17M presence across all markets Widespr
Slide 24: 6play: an expanding offer
THE GROUP IS STEPPING UP ITS PRESENCE ACROSS ALL MARKETS An expanding offer WITHIN A CHANGING Gradual development of the AVOD offer via the ENVIRONMENT purchase of drama and short film catalogues 450+ AVOD brands uploaded in 2022 6PLAY New in IS THE GROUP’S 2022 STRATEGIC launch of an PRIORITY IN al
Slide 25: Increased influence on social media
5.1 bn videos viewed in 2022 INCREASED INFLUENCE 48 M individual ON SOCIAL MEDIA subscribers 72 accounts 56K posts
Slide 26: Radio audience ratings
RTL run At RADIO - AUDIENCE TINGS
Slide 27: Gradual decline in radio listening
60000 Number of Daily Listeners (K) Listening Time per Listener (Min) 280 GRADUAL 50000 -1% DECLINE IN 42 092 41 031 RADIO LISTENING 40 048 39 604 230 WHICH 40000 NEVERTHELESS -6min CONTINUES TO 30000 REACH 72% OF THE 167 166 163 180 POPULATION AGED 157 13 AND OVER EACH 20000 DAY (40 MILLION FRENCH
Slide 28: Listening via digital devices is growing
+5.1pp since 2019 15,4 17,2 19,1 14,0 2019 2020 2021 2022 LISTENING VIA DIGITAL DEVICES IS 19.1% of radio listening is via digital devices GROWING +1.0pp 9,9% +0.7 -0.1pp pp + + + 0.1pp 0.1pp 3,4% 2,8% 0.1pp 1,8% 0,9% 0,2% Mobile PCs Smart TV Tablets Portable Source: Médiamétrie Global Radio SO22 Vs
Slide 29: Leading commercial radio group
Year-on-year increase in audience share by group +0.2pp FY 2021 FY 2022 THE M6 RADIO DIVISION 18,4 CONSOLIDATED ITS 18,2 +0.5pp POSITION AS THE -0.8pp 14,3 LEADING 13,8 COMMERCIAL 12,3 11,5 -0.8pp RADIO GROUP + 8,5 0.1pp 7,7 AND POSTED YEAR- ON-YEAR GROWTH 5,6 5,7 Source: Médiamétrie EAR National, M
Slide 30: Radio stations' audience share year-on-year
POSTED GROWTH AND ACHIEVED ITS ACHIEVED A POSTED 4TH BEST YEAR EVER RECORD YEAR A DECLINE Year-on-year increase in stations’ audience share +1.0pp +0.3pp FY 2021 FY 2022 14,0 13,0 12,8 12,5 +0.2pp -0.8pp + 0.1pp +0.8pp +0.4pp 6,16,3 -0.2pp -0.7pp + 0.1pp 5,65,7 5,9 5,2 5,1 4,8 +0.4pp = -0.3pp + 0.1p
Slide 31: RTL remains the leading commercial podcast publisher
17.6M MORE THAN 1 IN 3 French people INTERNET USERS listen to podcasts each month (on-demand and original) ACCESS A PODCAST Accounting for more than 1 in 3 internet users (36.1%) EACH MONTH RTL REMAINS THE LEADING 32,108,000 listens COMMERCIAL and/or downloads per month PODCAST (up 10% year-on-year)
Slide 32: Advertising market
- ADVERTISING * MARKET :
Slide 33: Decline in advertising revenue
TV M6 group net advertising revenues (€ millions) DECLINE IN 930.4 975.0 925.1 ADVERTISING REVENUE 1,137.4 1,107.9 1,083.6 1/ 2021: 2019 2021 2022 unfavourable base effect (steady recovery in consumer spending, EURO 2020) Other operations 2/ 2022: worsening economic environment and broadcast of the
Slide 34: TV, Radio key figures
TV RADIO KEY FIGURES
Slide 35: TV: cost management to offset lower advertising revenue
EBITA (€ m) 286.2 265.0 Revenue (€ m) 223.6 270.5* 270.5* 263.2* TV 1,013.6 1,091.8 1,069.7 2019 2021 2022 SOUND COST Margin from recurring 22.1% 24.8%* 24.6%* MANAGEMENT operations 26.2% 24.8% TO OFFSET LOWER ADVERTISING REVENUE Decline in Optimised management advertising of programming costs reven
Slide 36: Radio: ongoing efforts to control costs
EBITA (€ m) 35.8 Revenue (€ m) 30.1 32.4* 34.1 270.5* 15.5 171.0 157.6 RADIO 157.1 2017 2019 2021 2022 9.4% 17.6% 20.6%* 21.7% ONGOING Margin from recurring operations EFFORTS TO 22.8% CONTROL EBITA has more than doubled since the COSTS acquisition of the radio division in 2017 2019 Stabilisation Co
Slide 37: Production & Audiovisual Rights
PRODUCTION & AUDIOVISUAL RIGHTS
Slide 38: Decline in revenue due to decline in video business
Revenue (€ m) Video Unfavourable base effect with the video release at the end of 2021 of 75.1 Kaamelott: The First Chapter, which 60.6 56.2 was highly successful (following its cinema success) but was not replicated in 2022 2019 2021 2022 Cinema DECLINE IN 12 films released in 2022 REVENUE DUE TO E
Slide 39: Diversification
DIVERSIFICATIONS DIVERSIFICATI
Slide 40: Strong growth in EBITA, reflecting turnover in the diversification portfolio
Revenue (€ m) Consolidated since 196.1 1 January 2022: Revenue: €25.1 million (growth vs. 2021) 79.9 72.3 740 franchise agreements signed (vs. 660 at the end of 2021) STRONG 2019 2021 2022 A strong contributor to EBITA GROWTH IN Decline in advertising EBITA, EBITA (€ m) revenue of portals (impact of
Slide 41: Portfolio of non-consolidated assets, a reservoir of value
PORTFOLIO OF NON-CONSOLIDATED ASSETS, A RESERVOIR OF VALUE FOR M6 GROUP Investments in assets with high potential and operating in diversified markets STREAMING DIGITAL MARKETING OTHER OPERATIONS Tech Cashback & Bank Going paperless Online Event streaming Couponing comparison site furniture manageme
Slide 42: Financial statements
FINANCIAL STATEMENTS
Slide 43: Condensed consolidated statement of comprehensive income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2022 / 2021 change M6 Group 31 December 2022 31 December 2021 (€ millions) Revenue 1,356.9 1,390.4 (33.5) Other operating revenues 18.8 45.4 (26.6) Total operating revenues 1,375.6 1,435.7 (60.1) Materials and other operating expenses (656.5)
Slide 44: Condensed balance sheet
CONDENSED BALANCE SHEET 31 December 2021 2022 / 2021 change M6 Group 31 December 2022 restated * (€ millions) Goodwill 299.3 299.3 - Non-current assets 588.6 624.1 (35.5) Current assets 724.4 813.4 (88.9) Cash and cash equivalents 374.8 349.0 25.8 TOTAL ASSETS 1,987.2 2,085.9 (98.7) Equity - Group s
Slide 45: Cash flow statement
CASH FLOW STATEMENT 2022 / 2021 M6 Group 31 December 2022 31 December 2021 change (€ millions) Self-financing capacity from operations 422.0 441.3 (19.2) Operating WCR movements (35.4) 73.4 (108.7) Income tax (90.5) (59.2) (31.3) Cash flow from operating activities 296.2 455.4 (159.2) Cash flow from
Slide 46: Proposed dividend of €1.00 per share
PROPOSED DIVIDEND OF €1.00 PER SHARE Yield (calculated based on Pay-out ratio (as % of net profit Dividend per share the year-end closing price) from continuing activities paid for the year attributable to the Group)
Slide 47: CSR key figures
69% of employees have received training 548 43% items on the environment in of management news bulletins roles are held by (up 21% vs 2021) women In 2023… CSR In 2022… KEY FIGURES Introduction of a CSR indicator accounting €500k 10% for of the corporate 10,302 MWh variable remuneration of employees
Slide 48: Outlook
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Slide 49: Targets
DTT licence renewal for the M6 channel 2023 TARGETS Developing AVOD offers FINALISATION Continuing to invest in OF THE STRATEGIC content production REVIEW Supporting the development of the diversification division and identifying new growth drivers 49
Slide 50: Questions & Answers
QUESTIONS & ANSWERS