Advertising revenue: €226.2 m (up 2.6%)
EBITA: €54.0 m (up 58.0%) Operating margin: 18.1% (up 6.5
pps)
FIRST NINE MONTHS OF
2020
Advertising revenue: €626.8 m (down 17.5%)
EBITA: €138.3 m (down 24.2%) Operating margin: 16.2% (down 1.9
pps)
Regulatory News:
M6 Métropole Télévision (Paris:MMT):
H1 Q3 9 months (€ millions)
2020
2019
%
2020
2019
%
2020
2019
%
Multimedia advertising revenue
400.6
539.3
-25.7%
226.2
220.5
+2.6%
626.8
759.8
-17.5%
- of which TV advertising revenue
338.6
454.3
-25.5%
188.0
182.6
+3.0%
526.6
636.9
-17.3%
- of which other advertising revenue
62.0
85.0
-27.0%
38.2
37.9
+0.8%
100.2
122.9
-18.4%
Non advertising revenue
156.7
175.3
-10.6%
72.5
74.1
-2.1%
229.2
249.4
-8.1%
Consolidated revenue1
557.3
714.6
-22.0%
298.7
294.5
+1.4%
856.1
1 009.1
-15.2%
Profit from recurring operations (EBITA2)
84.4
148.3
-43.1%
54.0
34.2
+58.0%
138.3
182.4
-24.2%
Operating margin from recurring operations
15.1%
20.7%
-5.6 pps
18.1%
11.6%
+6.5 pps
16.2%
18.1%
-1.9 pps
Net profit - Group share
162.3
88.4
+83.6%
33.6
20.2
+66.7%
195.9
108.6
+80.5%
A rapid recovery in consumer spending was seen during the summer
period, following the end of lockdown. The Group’s advertising
activities benefited and recorded growth of 2.6% during the third
quarter, driven by Television (up 3.0%) which confirmed its leading
role in the economic recovery.
Excluding the negative base effect of €9.2 million related to
the deconsolidation of iGraal, non-advertising revenue rose by
12.0%, driven by the integration of the Youth TV division and the
growth in film distribution revenue.
Over the 3rd quarter of 2020, M6 Group’s consolidated revenue
was €298.7 million, an increase of 1.4%.
Moreover, during the third quarter the Group pursued its efforts
to reduce costs, both in relation to its programme schedules and
other operating expenses. Consolidated EBITA stood at
€54.0 million, a significant increase of €19.8 million
in comparison with the third quarter of 2019.
Over the first nine months of 2020, M6 Group generated
revenue of €856.1 million, down €153.0 million or 15.2%,
reflecting the acute impact of the lockdown measures on all its
activities.
Consolidated EBITA for the 9 months to the end of
September 2020 was €138.3 million, a year-on-year decline
of €44.1 million (24.2%). The huge savings plan implemented
helped to absorb 71% of the drop in revenue. This performance
illustrates the Group’s agility and its swift response to the
crisis.
Operating margin remained at a high level (16.2%), down
1.9 percentage points in relation to the first nine months of
2019.
Television
(€ millions)
2020
2019
%
TV advertising revenue 1st Quarter
202.9
221.8
-8.5%
2nd Quarter
135.7
232.5
-41.6%
3rd Quarter
188.0
182.6
+3.0%
Total 9 months
526.6
636.9
-17.3%
Other TV revenue Total 9 months
71.2
58.3
+22.1%
Total TV segment revenue Total 9 months
597.8
695.2
-14.0%
Following a summer of growth (5% in July and 11% in August), TV
consumption maintained its solid momentum in September, during
which it recorded daily viewing time of 3hrs 34mins3, a
year-on-year increase of 17 minutes (up 9%).
Within this favourable climate, M6 Group’s free-to-air channels
and their related services increased their power, attracting an
average of 24.4 million viewers each day in September, an increase
of 8%.
Over this period, the M6 channel stood out, leading the
WRP<50 segment in the strategic access primetime slot
(5.30-9.00pm)4, thanks to its dynamic programme line-up - Les
Reines du Shopping / Tous en Cuisine / Le 19 45 / Scènes de
ménages. It also enjoyed many primetime successes with, notably,
the TV film Apprendre à t’aimer (4.4 million viewers), the France
vs Sweden football match (5.0 million) and the return of both
L’Amour est dans le pré (3.7 million) and Cauchemar en cuisine (3.2
million).
Indispensable for its power, TV advertising recovered in the
third quarter due to the desire of advertisers to restart their
activities after the lockdown, notably during the key back to
school period. Thanks to its performance in the busiest day-time
slots, M6 Group recorded a 3.0% (1.0% on a like-for-like basis)
increase in TV advertising revenue in comparison with the third
quarter of 2019.
Radio
(€ millions)
2020
2019
%
Radio revenue 1st Quarter
31.5
35.5
-11.2%
2nd Quarter
28.4
46.8
-39.2%
3rd Quarter
37.2
36.2
+2.8%
Total 9 months
97.1
118.5
-18.0%
Against the backdrop of the post-lockdown economic recovery,
Radio advertising particularly benefited from its ability to
promote in-store traffic (drive-to-store). Over the third quarter,
the Radio advertising market thus bounced back strongly from the
lows seen in spring, resulting in M6 Group’s Radio division
recording growth of 2.8%.
Production and audiovisual rights
(€ millions)
2020
2019
%
Production and audiovisual rights revenue 1st Quarter
15.9
19.7
-19.5%
2nd Quarter
13.4
20.4
-34.2%
3rd Quarter
16.9
12.0
+40.0%
Total 9 months
46.1
52.1
-11.5%
Revenue from the Production and Audiovisual Rights division
stood at €16.9 million in the 3rd quarter of 2020, an
increase of 40.0% year on year.
Within an environment that continued to be impacted by the
pandemic, SND made the strong decision to support cinema
operators by continuing to release films.
6 films were released during the third quarter, generating 2.3
million admissions, compared with 1.3 million in 2019. The success
of Les Blagues de Toto should in particular be highlighted, with
the French family comedy achieving more than 1.0 million admissions
since its release on 5 August 2020.
Diversification
(€ millions)
2020
2019
%
Diversification revenue 1st Quarter
44.9
51.9
-13.5%
2nd Quarter
36.3
50.7
-28.4%
3rd Quarter
33.3
40.5
-18.0%
Total 9 months
114.4
143.1
-20.0%
Diversification revenue totalled €33.3 million for the
3rd quarter of 2020, a year-on-year decrease of €7.3
million. This decline was primarily due to the deconsolidation
of iGraal (€9.2 million in revenue in the third quarter of 2019),
partially offset by the growth in revenue generated by Best of
TV.
Financial position
At 30 September 2020, the Group had shareholders’ equity of
€987.9 million, compared with €772.9 million at 31 December 2019,
an increase of €215.0 million that essentially reflects the net
profit for the first nine months (including in particular the
capital gains related to the sales of iGraal and Bedrock), and the
fact that no dividend was paid out in 2020 for 2019.
Group share of net profit for the first nine months was €195.9
million.
In September, the Group also paid back in full the €180 million
in bank credit facilities taken out in March to manage its
liquidity risk during the Covid-19 crisis.
As such, the Group recorded net debt of €11.1 million5 at 30
September 2020, compared with €98.7 million at 31 December 2019,
and had €99.0 million in cash and cash equivalents, retaining the
ability to draw down its credit facilities at any moment.
Outlook
Within an uncertain TV advertising market with reduced
visibility since the introduction of further curfew measures, M6
Group will seek to consolidate the strength of its audience figures
during strategic timeslots, notably thanks to its strong brands. It
will also remain particularly attentive to cost control.
A new milestone in the development of the Group’s on-demand
operations was passed on 20 October, with the launch of Salto.
Alongside its partners, it will provide an ambitious response to
the new expectations of the viewing public, with a high quality,
innovative and easy to access service offering a wide range of
unrivalled content.
Salto is expected to have a negative impact of €9 million on the
Group’s 2020 net profit.
Lastly, the fourth quarter will be marked by the deconsolidation
of the home shopping activity, following the sale of Home Shopping
Service on 1 October 2020.
Next release: 2020 full-year financial
information on 16 February 2021 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 TV
advertising revenue (advertising revenue of free-to-air channels
M6, W9, 6ter and Gulli, and the platforms 6play and Gulli Replay,
as well as 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 Source:
Médiamétrie Médiamat 4 Monday-Friday 5 The net cash position does
not take into account lease liabilities resulting from the
application of IFRS 16 – Leases from 1 January 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201027005955/en/
INVESTOR RELATIONS Guillaume Couturié +33 (0)1 41 92 28
03 / guillaume.couturie@m6.fr
PRESS Paul Mennesson +33 (0)1 41 92 61 36
/ paul.mennesson@m6.fr
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