Metropole Television Sa · EURONEXT:MMT
Metropole Television Sa — M6 Group — H1 2020 Earnings Presentation
41 slides from Metropole Television Sa's earnings presentation, 2020
Slide 1: 2020 Presentation of Half-Year Results
2020 PRESENTATION OF HALF-YEAR RESULTS
Slide 2: 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 INDICATOR OF FUTUR
Slide 3: Introduction, Operations, Financial Statements, Outlook
M6 GROUP PRESENTATION OF 2020 HALF-YEAR RESULTS 1. INTRODUCTION 2. OPERATIONS 3. FINANCIAL STATEMENTS 4. OUTLOOK 3
Slide 4: Introduction
INTRODUCTION
Slide 5: A first half-year marked by the Covid-19 pandemic
1. INTRODUCTION A FIRST HALF-YEAR MARKED BY THE COVID-19 PANDEMIC THE FRENCH ECONOMY IN LOCKDOWN IMPLEMENTATION OF A COMPREHENSIVE SAVINGS PLAN Drastic reduction in programming costs Record decline in advertising market (-€49m) Efforts to reduce structure costs (-€43m) Consolidated revenue down Oper
Slide 6: 59% of the decline in sales offset by cost savings
1. INTRODUCTION - KEY FIGURES 59% OF THE DECLINE IN SALES OFFSET BY COST SAVINGS -22.0% KEY FIGURES (€ millions) 714.6 H1 2019 -16.2% -25.7% H1 2020 EXCL. CAPITAL GAINS 557.3 568.3 ON DISPOSALS OF EQUITY INVESTMENTS 539.3 476.1 400.6 +83.6% -43.1% 148.3 162.3 88.4 84.4 3.1 42.7 2.0 CONSOLIDATED ADVE
Slide 7: All activities impacted by the pandemic
1. INTRODUCTION - KEY FIGURES ALL ACTIVITIES IMPACTED BY THE PANDEMIC TOTAL TELEVISION RADIO PRODUCTION & OTHER OTHER AUDIOVISUAL RIGHTS DIVERSIFICATION H1 2020 vs. H1 2019 REVENUE -€102.9m -€22.4m -€10.8m -€21.4 m* -€157.2m GROWTH H1 2020 vs. H1 2019 +€3.1m +€2.2m EBITA -€47.2m -€14.2m -€7.7 m* -€6
Slide 8: H1 2020: two major transactions
1. INTRODUCTION H1 2020: TWO MAJOR TRANSACTIONS 50% 100% 50% Strengthening the Group’s positioning in The goal is to step up the Group’s digital marketing and technology innovation capacity in streaming International expansion International expansion M6 the leading shareholder in the new structure (
Slide 9: Television audience ratings
TELEVISION AUDIENCE RATINGS
Slide 10: H1 2020: TV consumption soared to an all-time high
2. AUDIENCE RATINGS - TELEVISION H1 2020: TV CONSUMPTION SOARED TO AN ALL-TIME HIGH, FAR AHEAD OF SVOD PLATFORMS IVT 4+ COVERAGE 4+ 3H56 +27 mins vs H1 2019 78% +5pps vs H1 2019 IVT 15+ COVERAGE 15+ 0H14 9% +6 mins vs H1 2019 +4pps vs H1 2019 10 Source: Médiamétrie – weeks 1 to 26 for TV and NPA Con
Slide 11: 2020: M6, 2nd largest group on the commercial target
2. AUDIENCE RATINGS - TELEVISION 2020: M6, 2ND LARGEST GROUP ON THE COMMERCIAL TARGET 4+ AND WRP<50 AUDIENCE SHARES OF THE GROUPS (%) 4+ AUDIENCE SHARE (%) WRP<50 AUDIENCE SHARE (%) 28,1 31,9 (excl. france.info) 28,0 32,7 26,8 20.8 excl. Gulli 22,5 27,0 21,1 13.3 excl. Gulli 14,5 15,2 13,2 (excl. fr
Slide 12: H1 2020: M6 maintained strong prime time performance
2. AUDIENCE RATINGS - TELEVISION H1 2020: IN PRIME TIME AND ACCESS PRIMETIME, M6 MAINTAINED ITS STRONG PERFORMANCE DUE TO THE POWER OF ITS BRANDS AUDIENCE SHARE 4+ / WRP<50 (%) / AUDIENCE IN MILLIONS 7.45PM-10.30PM TIME SLOT stable over 5 years +0.2pp down 1pps over 5 years stable over 5 down 1pps o
Slide 13: M6's long-standing brands more powerful than ever
BEST EVER SEASON EVER BEST EVER PERFORMANCE FOR <50 YEARS 2. AUDIENCE RATINGS - TELEVISION M6’S LONG- STANDING BRANDS MORE POWERFUL THAN EVER BEST SEASON IN 15 BEST SEASON FOR YEARS FOR 4+ AND AUDIENCE FIGURES IN 8 UNDER 50S YEARS BEST SEASON FOR BEST EVER SEASON FOR 13 Source: Médiamétrie / consoli
Slide 14: Record ratings for news, innovative formats made into successes
2. AUDIENCE RATINGS - TELEVISION RECORD RATINGS INNOVATIVE FORMATS FOR NEWS MADE INTO SUCCESSES RECORD H1 IN 8 YEARS FOR UNDER 50S IN 7 YEARS FOR 4+ AND IN AUDIENCE FIGURES 14% 4+ / 20% <50 3.2M TOUS EN CUISINE QUI VEUT ETRE MON ASSOCIE? 2.0m 25% 25-34 year olds ACCESS PRIMETIME 7PM PRIME TIME 7-yea
Slide 15: DTT audience ratings
TELEVISION DTT AUDIENCE RATINGS
Slide 16: W9 and 6ter among the leading DTT channels on the commercial target
2. AUDIENCE RATINGS – DTT W9 AND 6TER AMONG THE LEADING DTT CHANNELS ON THE COMMERCIAL TARGET 3,1 3,0 2,9 3,0 2,6 2,7 2,6 H1 2019 H1 2020 2,3 2,3 2,4 4+ AUDIENCE 1,8 1,7 1,8 1,7 1,7 1,7 SHARE (%) 1,4 1,5 1,6 1,6 1,3 1,3 1,3 1,4 1,3 1,5 1,2 1,2 1,2 1,1 1,2 1,1 1,0 0,8 0,5 0,6 4,5 4,1 4,0 3,9 3,3 3,3
Slide 17: H1 2020: The Group's DTT channels are in good shape
2. AUDIENCE RATINGS – TELEVISION – DTT H1 2020: THE GROUP’S DTT CHANNELS ARE IN GOOD SHAPE W9 GREW YEAR ON YEAR (4+) 5TH LARGEST DTT CHANNEL NO.1 YOUTH CHANNEL ON THE COMMERCIAL TARGET AMONG 4-10 / 4-14 +0.1 PPS 4+ YEAR ON YEAR STABLE YEAR ON YEAR AMONG WRP<50 Success of family films “Learner Nation
Slide 18: Pay TV channels audience ratings
TELEVISION PAY TV CHANNELS AUDIENCE RATINGS
Slide 19: H1 2020: Paris Première and Téva in the top 3 pay channels
2. TELEVISION – PAY-TV CHANNELS AUDIENCE RATINGS H1 2020: PARIS PREMIÈRE AND TÉVA, 2 IN THE TOP 3 MOST POWERFUL PAY CHANNELS TÉVA STILL THE CLEAR LEADER FOR PAY-TV CHANNELS PARIS PREMIÈRE AT A RECORD LEVEL AMONGST 4+ VIEWERS AMONG FEMALE VIEWERS N°1: the most watched pay channel with almost N°1: amo
Slide 20: 6play audience ratings
TELEVISION 6PLAY AUDIENCE RATINGS
Slide 21: 6play audience ratings
1.2M active daily users 2. TELEVISION 715M videos 6PLAY AUDIENCE RATINGS viewed over the half-year => +15% year on year HIGH 6PLAY VIEWING FIGURES IN H1 All-time record audience achieved on Tuesday 14 April 6.2M More than 2M videos viewed active users 21 Sources: Médiamétrie and Heartbeat
Slide 22: Radio audience ratings
RADIO _ AUDIENCE RATINGS
Slide 23: Q1 2020: M6 Group the leading private radio group
2. RADIO - AUDIENCE RATINGS Q1 2020: M6 GROUP THE LEADING PRIVATE RADIO GROUP, STRONGEST YEAR-ON-YEAR GROWTH AUDIENCE SHARES OF PRIVATE GROUPS (%) Competitive +4.9 pps advantage over challenger 18,9 14,0 +0.7pps 11,7 9,6 + 0.1pps -1.0pps 5,9 -0.7pps -0.2pps RTL Radio Division NRJ Group TF1 Publicité
Slide 24: Post-lockdown: very strong momentum for radio division
2. RADIO - AUDIENCE RATINGS POST-LOCKDOWN - VERY STRONG MOMENTUM FOR RADIO DIVISION 13.4% audience share amongst 13+ listeners 3.6% audience share 2.6% audience share amongst 13+ listeners amongst 13+ listeners No.1 radio station in France (+1 pps lead on France Inter) +6 percentage point competitiv
Slide 25: Advertising market
ADVERTISING MARKET
Slide 26: M6 Group's advertising revenue impacted by the pandemic
2. ADVERTISING MARKET M6 GROUP’S ADVERTISING REVENUE IMPACTED BY THE PANDEMIC TV -28.1% -25.5% 454.3 326.8 338.6 M6 GROUP NET ADVERTISING REVENUES (€ MILLIONS) H1 2019 H1 2020 H1 2020 Excluding Youth TV -25.7% division 539.3 400.6 OTHER OPERATIONS -27.0% 85.0 62.0 H1 2019 H1 2020 2018 2019 26
Slide 27: TV & Radio key figures
TV & RADIO - KEY FIGURES
Slide 28: 64% of the fall in revenue offset by cost savings (Television)
2. TELEVISION – KEY FIGURES 64% OF THE FALL IN REVENUE OFFSET BY COST SAVINGS* REVENUE (€ M) EBITA (€ M) -21.0% 489.5 Decline in advertising revenue 386.6 -41.6% Massive cost savings plan on programming 113.5 costs 66.2 H1 2019 H1 2020 28 * Excluding scope impact related to the integration of the Yo
Slide 29: 37% of the fall in revenue offset by cost savings (Radio)
2. RADIO 37% OF THE FALL IN REVENUE OFFSET BY COST SAVINGS REVENUE (€ M) EBITA (€ M) -27.2% 82.3 59.9 Decline in advertising revenue 12.0 -2.2 H1 2019 H1 2020 29
Slide 30: Production & audiovisual rights
PRODUCTION & AUDIOVISUAL RIGHTS
Slide 31: Increase in profitability despite closure of cinemas
2. PRODUCTION & AUDIOVISUAL RIGHTS INCREASE IN PROFITABILITY DESPITE CLOSURE OF CINEMAS CINEMA REVENUE (€ M) CINEMAS CLOSED FOR MORE THAN 3 MONTHS H1 2019 0.7M ADMISSIONS H1 2020 -26.9% 40.1 29.3 1.6M ADMISSIONS IN FRANCE (VS 4.7M 0.6M IN H1 2019) ADMISSIONS AUDIOVISUAL RIGHTS EBITA (€ M) EXTENSIVE
Slide 32: Other diversifications
OTHER _ DIVERSIFICATIONS DIGITAL SERVICES
Slide 33: Proactive turnover of the diversification portfolio
2. OTHER DIVERSIFICATION PROACTIVE TURNOVER OF THE DIVERSIFICATION PORTFOLIO SINCE 1989: A NON-MEDIA INVESTMENT STRATEGY BACKED BY TELEVISION, GRADUALLY SOLD AND REINVESTED 100% from 1999 to 2018 100% from 1989 to 2020 2016 to … 2010 to 2018 Sold for €100m Planned disposal + programme maintained Tra
Slide 34: Strong resilience of diversification activities excluding base effects
2. OTHER DIVERSIFICATION EXCLUDING NEGATIVE BASE EFFECTS, STRONG RESILIENCE OF DIVERSIFICATION ACTIVITIES SLIGHT DECLINE IN DECLINE IN REVENUE* CONTRACT REVENUE INCREASE IN EBITA* SCOPE ENDED 30 INCREASE IN EBITA IMPACTS JUNE 2019 REVENUE (€ M) H1 2019 -20.9% H1 2020 Revenue -3.4%* down 102.5 81.2 -
Slide 35: Financial statements
FINANCIAL STATEMENTS
Slide 36: Condensed consolidated statement of comprehensive income
H1 2020 / H1 2019 M6 Group 30 June 2019 30 June 2020 change (€ millions) Revenue 714.6 557.3 (157.2) Other operating revenues 2.0 3.1 1.2 Total operating revenues 716.5 560.5 (156.1) Materials and other operating expenses (338.6) (293.0) 45.6 Personnel costs (including profit sharing plan contributi
Slide 37: Condensed balance sheet
2020 / 2019 change M6 Group 31 December 2019 30 June 2020 (€ millions) Goodwill 366.5 356.0 (10.5) Non-current assets 386.1 471.9 85.8 Current assets 859.6 792.0 (67.5) 3. FINANCIAL STATEMENTS Cash and cash equivalents 45.9 295.9 250.0 CONDENSED Assets held for sale(1) 49.2 - (49.2) BALANCE SHEET TO
Slide 38: Cash flow statement
H1 2020 / H1 2019 M6 Group 30 June 2019 30 June 2020 change (€ millions) Self-financing capacity from operations 204.9 120.0 (85.0) Operating WCR movements (45.1) 36.2 81.4 Income tax (42.4) (42.6) (0.3) Cash flow from operating activities 117.4 113.5 (3.8) Cash flow from investment activities (43.3
Slide 39: Outlook
~ OUTLOOK
Slide 40: 2020 challenges: continuing to strengthen the Group in its core business
Recovering after Increasing the the pandemic power of our media OUTLOOK 2020 CHALLENGES: CONTINUING TO Implement the Successfully synergies STRENGTHEN THE programme launching Salto GROUP IN ITS CORE with the Youth TV division BUSINESS Rebalancing the competition Continuing the conditions Radio/TV be
Slide 41: Questions & Answers
QUESTIONS & ANSWERS