Regulatory News:

M6 Métropole Télévision (Paris:MMT):

1   1st Quarter
         
(€ millions) 2019   2018   change
   
Group advertising revenue   259.4   252.2   +2.9%
- of which FTA channels' advertising revenue207.3 203.2 +2.0%
- of which cab-sat channels and other media advertising revenue   52.2   49.1   +6.3%
Non advertising revenue 86.3 93.4 -7.6%
           
Consolidated revenue 345.7   345.6   +0.0%
 

For the 1st quarter of the 2019 financial year, M6 Group recorded stable consolidated revenue of €345.7 million. Advertising revenues grew 2.9% (up €7.2 million), reflecting the momentum of its TV, Radio and Internet media. Advertising revenue from the free-to-air channels returned to growth (up 2.0%) despite a significant base effect (3.4% growth in the 1st quarter of 2018).

Restated for the scope effect related to the deconsolidation of monAlbumPhoto (sold in July 2018), a decline of €1.2 million in non-advertising revenue was recorded, primarily involving the distance-selling activities.

Consolidated profit from recurring operations (EBITA)2 reached €64.2 million, compared with €62.0 million in the 1st quarter of 2018. This increase was mainly due to the ongoing implementation of synergies generated by the integration of the Radio division.

The Group’s operating margin was 18.6%, a 0.7 percentage point uplift compared with the 17.9% margin reported in the 1st quarter of 2018.

TELEVISION

(€ millions)   1st Quarter
         
2019 2018 change
Consolidated revenue 238.6 235.3 +1.4%
o.w. FTA channels' advertising revenue207.3 203.2 +2.0%
 

Over the first quarter of 2019, M6 Group’s free-to-air channels recorded a stable average audience share of 21.5% on the commercial target of women under 50 responsible for purchases3.

Thanks to its longstanding brands, such as Le 19’45 (22% audience share amongst WRP<50), Scènes de ménages (22%), Top Chef (27%) and Mariés au premier regard (23%), the M6 channel saw its audiences grow to high levels in the strategic 8pm-12am slot (18% audience share, up 0.2 pp).

Puissance TNT consolidated its position as the leading DTT advertising service. Its two channels, W9 and 6ter, achieved a cumulative audience share of 6.8% on the commercial target, an increase of 0.4 points in relation to the 1st quarter of 2018.

Thanks to their effectiveness in the strategic time slots, M6 Group’s free-to-air channels posted a 2.0% increase in their advertising revenues. This performance also highlights the continued attractiveness of the TV medium to advertisers.

Moreover, 6play’s advertising revenue continued to grow, driven by the increase in the on-demand consumption of television programmes and the platform’s capacity for targeted advertising.

Conversely, the sales volume of distribution rights over the 1st quarter of 2019 did not match the performance achieved in 2018 (€1.3 million compared with €3.3 million).

RADIO

(€ millions)   1st Quarter
         
2019 2018 change
Consolidated revenue 35.5 34.8 +1.7%
 

Over the January-March 2019 audience wave, the RTL Radio division confirmed its position as the leading private radio group in France with an audience share of 18.2% amongst listeners aged 13 and over4. This performance helped it to post a lead of 4.3 points over its main commercial rival.

  • RTL, France’s top private radio station, achieved an audience share of 11.8%.
  • Fun Radio maintained an audience share of 3.6% over the entire day and saw its morning show, Bruno dans la radio, grow by 0.7 points in relation to the previous wave in November/December 2018.
  • RTL2, the leading music station in the “young adult” segment, achieved an audience share of 2.9%, up 0.2 points in comparison with the November/December 2018 wave.

Over the first three months of the year, Radio revenue totalled €35.5 million, an increase of 1.7%.

PRODUCTION & AUDIOVISUAL RIGHTS

(€ millions)   1st Quarter
         
2019 2018 change
Consolidated revenue 19.7 17.7 +11.3%
 

Revenue from Production and Audiovisual Rights operations totalled €19.7 million, a year-on-year increase of 11.3%, due to a favourable cinema release schedule at SND (2.2 million cinema admissions vs. 1.7 million in Q1 2018).

The first quarter of 2019 was notable for the continued success of Astérix: The Secret of the Magic Potion, released on 5 December 2018, which recorded more than 4 million cinema admissions in France, including 1,1 million during the first quarter of 2019.

DIVERSIFICATION

(€ millions)   1st Quarter
         
2019 2018 change
Consolidated revenue 51.9 57.7 -10.1%
 

Diversification revenue stood at €51.9 million, down €5.8 million, including a shortfall of €5.9 million due to the deconsolidation of monAlbumPhoto, sold in July 2018.

In addition, over the course of the quarter,

  • Revenue from M6 Digital Services (digital marketing and theme-based portals) increased;
  • The home shopping business recorded a difficult start to the year as a result of a less successful product catalogue.

FINANCIAL POSITION AND DIVIDEND

At 31 March 2019, Group equity totalled €755.5 million (€716.6 million at 31 December 2018) with a net cash position of €141.6 million5 (€93.8 million at 31 December 2018).

The Combined General Meeting convened today will be asked to approve the payment6 of a dividend of €1.00 per share in respect of the 2018 financial year, providing a dividend yield of 7.1% calculated using the closing stock-exchange price of 2018.

GOVERNANCE

At the end of the Annual General Meeting, and following the resignation of Bert Habets, the Supervisory Board will henceforth be composed of 9 members, including 1 member representing employees:

  • Elmar Heggen, Chairman,
  • Sophie de Bourgues, member representing employees,
  • Marie Cheval, independent member,
  • Nicolas Houzé, independent member,
  • Mouna Sepehri, independent member,
  • Philippe Delusinne,
  • Vincent de Dorlodot,
  • Jennifer Mullin,
  • Juliette Valains.

With 38% independent members and 50% female members7, the Group has strengthened its governance in respect of both the AFEP-MEDEF Code and the provisions concerning a “balanced male and female representation within boards of directors and supervisory boards and gender equality at work” set out by Article L.225-69-1 of the French Commercial Code.

As part of the Supervisory Board’s work relating to the succession of the Executive Board, whose current term of office will expire on 21 February 2020, the Annual General Meeting will be asked to extend the age limit to 72 years in order to give the Group greater flexibility in the implementation of the various scenarios envisaged regarding the replacement of the members and chairman of the Executive Board.

Neuilly-sur-Seine, 25 April 2019

Next release: Half-year financial information on 30 July 2019 after close of trading
M6 Métropole Télévision is listed on Euronext Paris, Compartment A
Ticker: MMT, ISIN Code: FR0000053225

1 The information provided is intended to highlight the breakdown of consolidated revenue between advertising and non-advertising revenue. Group advertising revenue includes the advertising revenue of free-to-air channels M6, W9 and 6ter and the 6play platform, the share of advertising revenue from pay channels, the advertising revenue of radio stations RTL, RTL2 and Fun, and the share of advertising revenue generated by diversification activities (mainly Internet).

Due to the application of IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations following the sale of FCGB on 6 November 2018, the Group’s 2018 revenue and EBITA do not include FCGB data.

2 Profit from recurring operations (EBITA) is defined as operating profit (EBIT) before amortisation and impairment of intangible assets (excluding audiovisual rights) related to acquisitions and capital gains and losses on the disposal of financial assets and subsidiaries.

3 Source: Médiamétrie Médiamat / consolidated audiences

4 Source: Médiamétrie 126,000

5 The net cash position at 1 January 2019 does not take into account rental liabilities resulting from the application of IFRS 16 – Leases

6 Last trading day with dividend rights: 14 May 2019 - Ex-dividend date: 15 May 2019 - Payment date: 17 May 2019

7 The member who represents employees is not counted in these two percentages.