M6 - Metropole Television: Third Quarter 2019

3.6% growth in advertising revenue to €220.5 million
4.7% increase in EBITA to €34.2 million
Integration of the Youth TV division as of 1 September 2019

NEUILLY SUR SEINE, France--()--Regulatory News:

M6 - Metropole Television (Paris:MMT):

At its meeting of 29 October 2019, the Supervisory Board reviewed the financial statements for the 3rd quarter of 2019 as approved by the Executive Board.

H1

 

Q3

 

9 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(€ millions) 1

2019

 

2018

 

%

 

2019

 

2018

 

%

 

2019

 

2018

 

%

             
Multimedia advertising revenue

539.3

 

527.1

 

+2.3%

 

220.5

 

212.8

 

+3.6%

 

759.8

 

739.9

 

+2.7%

- of which FTA channels' advertising revenue

420.5

 

417.7

 

+0.7%

 

169.2

 

166.0

 

+1.9%

 

589.7

 

583.7

 

+1.0%

- of which other advertising revenue

118.8

 

109.4

 

+8.6%

 

51.3

 

46.8

 

+9.6%

 

170.1

 

156.2

 

+8.9%

Non advertising revenue

175.3

 

176.1

 

-0.5%

 

74.1

 

81.0

 

-8.6%

 

249.4

 

257.1

 

-3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated revenue

714.6

 

703.2

 

+1.6%

 

294.5

 

293.8

 

+0.3%

 

1,009.1

 

997.0

 

+1.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit from recurring operations (EBITA2)

148.3

 

147.1

 

+0.8%

 

34.2

 

32.6

 

+4.7%

 

182.4

 

179.7

 

+1.5%

Margin from recurring operations

20.7%

 

20.9%

 

-0.2 pp

 

11.6%

 

11.1%

 

+0.5 pp

 

18.1%

 

18.0%

 

+0.1 pp

Over the 3rd quarter of 2019, M6 Group’s consolidated revenue was stable (up 0.3%) at €294.5 million. The decline in non-advertising revenue (primarily from cinema movie distribution) was offset by the increase in multimedia advertising revenue (organic growth of 1.7%)3.

Consolidated EBITA totalled €34.2 million in the 3rd quarter of 2019, vs. €32.6 million in the 3rd quarter of 2018. The Group was able to increase its operating profit despite the unfavourable base effect related to the termination of the M6 mobile by Orange contract on 30 June 2019 (down €4.7 million). This rise reflects the increase in profitability of the TV and Radio segments.

Over the first nine months of 2019, M6 Group posted revenue of €1,009.1 million, representing growth of 1.2% and including a 2.7% increase in advertising revenue.

Consolidated EBITA for the 9 months to end September 2019 was €182.4 million, a year-on-year increase of 1.5%.
The margin from recurring operations stood at 18.1% (up 0.1 percentage point).

 

*

* *

Television

In € millions  

2019

 

2018

 

%

             
Revenues – FTA channels advertising
1st Quarter  

207.3

 

203.2

 

+2.0%

2nd Quarter  

213.2

 

214.5

 

-0.6%

3rd Quarter  

169.2

 

166.0

 

+1.9%

9-month  

589.7

 

583.7

 

+1.0%

       
Other revenues of the segment
9-month  

105.5

 

94.5

 

+11.7%

       
Total TV segment revenues
9-month  

695.2

 

678.2

 

+2.5%

M6 Group’s 4 free-to-air channels (M6, W9, 6ter and Gulli) saw their audience share on the commercial target of women under 50 responsible for purchases remain stable over the 3rd quarter4.

Entities from Lagardère’s TV division have been consolidated since 1 September 2019. Their operational integration is in progress and their teams will relocate to the Neuilly site at the end of the year.

At constant consolidation scope, the TV segment’s revenue grew by 1.3% in the 3rd quarter of 2019.

Excluding Gulli, advertising revenue from free-to-air channels declined slightly (down 0.3%), with the robust business in September offsetting the decline seen in July and August.

Lastly, 6play’s advertising revenue maintained its growth trajectory, driven by the success of its on-demand programmes and the popularity of its targeted advertising service with advertisers.

Radio

In € millions  

2019

 

2018

 

%

1st Quarter  

35.5

 

34.8

 

+1.7%

2nd Quarter  

46.8

 

42.9

 

+9.1%

3rd Quarter  

36.2

 

34.4

 

+5.3%

9-month  

118.5

 

112.2

 

+5.6%

Within a robust market in the 3rd quarter, Radio revenue increased 5.3% year on year to €36.2 million. RTL (the leading radio station in France), RTL2 and Fun Radio all contributed to this strong performance.

Production and audiovisual rights

In € millions  

2019

 

2018

 

%

1st Quarter  

19.7

 

17.7

 

+11.3%

2nd Quarter  

20.4

 

14.2

 

+43.2%

3rd Quarter  

12.0

 

16.7

 

-27.9%

9-month  

52.1

 

48.6

 

+7.2%

Revenue from the Production and Audiovisual Rights division was €12.0 million in the 3rd quarter of 2019, a year-on-year decline of 27.9% due to a less favourable cinema release schedule. The number of cinema admissions for films distributed by SND totalled 1.3 million, compared with 2.7 million in the 3rd quarter of 2018. The success of Inséparables should nevertheless be underlined, with the French comedy achieving more than 1.0 million admissions since its release on 4 September 2019.

Diversification

In € millions  

2019

 

2018

 

%

1st Quarter  

51.9

 

57.7

 

-10.1%

2nd Quarter  

50.7

 

53.0

 

-4.4%

3rd Quarter  

40.5

 

47.1

 

-14.0%

9-month  

143.1

 

157.8

 

-9.3%

Diversification revenue totalled €40.5 million for the 3rd quarter of 2019, a year-on-year decrease of €6.6 million. This decline was mainly due to the termination of the M6 mobile by Orange contract as of 30 June 2019 (shortfall of €4.7 million in the 3rd quarter of 2019).

*

* *

Financial position

At 30 September 2019, the Group had shareholders’ equity of €698.6 million (€680.8 million at 30 June 2019), with net debt of €169.4 million5, which reflects the financing of the acquisition of the Youth TV division finalised in early September (acquisition cost: €215 million).

Outlook

In an erratic TV advertising market with limited visibility, over the 4th quarter M6 Group is committed to maintaining high audience ratings in strategic timeslots, particularly by leveraging its strong brands.

With the acquisition of the Youth TV division, M6 Group has strengthened its positioning on the French linear TV broadcasting market. Furthermore, the Group intends to continue investing in on-demand audio and video activities. A significant milestone will therefore be reached in 2020 with the Salto SVOD platform, bringing together the TF1, France Télévisions and M6 groups.

Next release: 2019 full-year financial information on 13 February 2020 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, 6ter and Gulli, and the 6play and Gulli Replay platforms, 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).
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 Excluding Youth TV division (formerly Lagardère)
4 Source: Médiamétrie Médiamat - including Gulli in Q3 2019 vs. Q3 2018
5 The net cash position does not take into account lease liabilities resulting from the application of IFRS 16 – Leases from 1 January 2019.

Contacts

INVESTOR RELATIONS
Eric Ghestemme +33 (0)1 41 92 59 53 / eric.ghestemme@m6.fr

PRESS
Paul Mennesson +33 (0)1 41 92 61 36 / paul.mennesson@m6.fr

Release Summary

Q3 2019 financial results.

Contacts

INVESTOR RELATIONS
Eric Ghestemme +33 (0)1 41 92 59 53 / eric.ghestemme@m6.fr

PRESS
Paul Mennesson +33 (0)1 41 92 61 36 / paul.mennesson@m6.fr