M6 Group: Consolidated Results at 31 December 2012
Solid results in a deteriorated environment:
*Revenues: €1,386.6 m
*EBITA: €218.5 m
*Net profit: €140.2 m
NEUILLY SUR SEINE, France -- February 19, 2013
M6 Group (Paris:MMT):
At its meeting held on 19 February 2013, the Supervisory Board reviewed the
Full-Year 2012 financial statements previously approved by the Management
in €m ^1 2012 2011 % variation
Consolidated revenues 1,386.6 1,421.3 -2.4%
Group advertising revenues 811.9 837.1 -3.0%
- of which M6 channel advertising revenues 647.1 675.9 -4.3%
- of which other advertising revenues 164.7 161.1 +2.2%
Group non advertising revenues 574.8 584.2 -1.6%
Consolidated current operating income 218.5 245.0 -10.8%
Consolidated operating income (EBIT) 206.0 241.6 -14.7%
Financial income 24.4 3.0 n.s
Deferred and current taxes -90.2 -94.9 -5.0%
Net profit - Group share 140.2 149.6 -6.3%
In 2012, the M6 Group demonstrated its resilience in a deteriorated economic
climate by reporting consolidated revenue of €1,386.6 million (down 2.4%).
The Group outperformed the TV advertising market and recorded a decline of
only 3.0% in advertising revenues. Following growth in the 1^st quarter, the
contraction in the advertising market accelerated from May onwards: thanks to
strong audience ratings, the M6 channel was able to limit the decrease in
full-year advertising revenues to 4.3%. Other advertising revenues (digital
channels and internet) increased 2.2%, while non-advertising revenues receded
slightly in 2012 (down 1.6%) to €574.8 million.
Consolidated profit from recurring operations (EBITA) thus totalled €218.5
million (down 10.8%), reflecting the decline in advertising revenues along
with the M6 channel’s investment in Euro 2012. The consolidated operating
margin from recurring operations was 15.8% (vs. 17.2% in 2011).
Due to increased competition in the online retail market, the Group recognised
an€€11.2 million impairment in goodwill relating to its e-commerce activity.
Net financial income was €24.4 million (compared to €3.0 million for the year
to 31 December 2011), including a net capital gain of €20.2 million (€18.4
million after tax) on the disposal in January 2012 of the Group’s equity
investment in US studio Summit Entertainment.
The Group’s share of net profit for the period totalled €140.2 million (down
In accordance with IFRS 8, the reporting of the Group is based on 3 operating
segments, whose contribution to revenues and EBITA was as follows:
^1 The financial information provides a breakdown of advertising and
non-advertising revenues. Group advertising revenues include M6, W9 and 6ter
(FTA channels) advertising revenues, the share of advertising revenues of pay
digital channels and the share of advertising revenues generated by
diversification activities (mainly Internet). The current operating income,
also called profit from recurring operations or EBITA, is defined as the
operating profit (EBIT) before amortisation and impairment of intangible
assets related to acquisitions (excluding audiovisual rights) and capital
gains and losses on the disposal of financial assets and subsidiaries.
9 months 4th quarter Full-Year
in €m 2012 2011 % 2012 2011 % 2012 2011 %
M6 FTA Network 479.1 497.3 -3.7% 184.8 188.0 -+1.7% 664.0 685.3 -3.1%
Digital 130.4 128.8 +1.3% 55.7 55.8 -0.2% 186.1 184.6 +0.8%
and Audiovisual 384.0 391.9 -2.0% 152.3 159.2 -4.4% 536.3 551.1 -2.7%
Others 0.2 0.2 n.s 0.0 0.1 n.s 0.2 0.3 n.s
Consolidated 993.8 1,018.3 -2.4% 392.9 403.0 -2.5% 1,386.6 1,421.3 -2.4%
M6 FTA Network - - - - - - 142.5 175.7 -18.9%
Digital - - - - - - 30.9 34.3 -9.9%
and Audiovisual - - - - - - 47.8 42.4 +12.8%
and unallocated - - - - - - -2.7 -7.4 n.s
current - - - - - - 218.5 245.0 -10.8%
M6 FTA Network
In 2012, M6 recorded the strongest increase in audience ratings of all French
channels and was the only traditional channel to report growth, achieving
ratings of 11.2% vs 10.8% in 2011 (4+ year olds, source Médiamétrie).
This strategic bolstering was due to event-driven programming, including the
broadcast of UEFA Euro 2012, as well as the relevance of the channel’s
strongest brands, which continued to achieve solid performances (L’Amour est
dans le pré, Scènes de Ménages, Bones, La France a un incroyable talent, etc.)
and contributed to the channel’s higher ratings.
Thanks to these successes, M6 reaffirmed its position as the 3^rd ranked
national channel among all audiences, and the 2^nd ranked prime-time national
These gains in market share partly absorbed the effects of a contracting
advertising market. In 2012, the channel’s revenues declined by 3.1% and
included a 4.3% decrease in advertising revenue. M6 outperformed the market
due to solid audience ratings.
Overall programming costs excluding Euro 2012 decreased 1.3% to €329.6
The M6 FTA network (M6 channel, advertising agency and production
subsidiaries) thus generated an operating margin from recurring operations
(EBITA/revenue) of 21.5%.
In 2012, revenue from the Group’s digital channels grew by 0.8%, primarily
driven by W9, which:
*Reported average audience ratings of 3.2% during the period (4+ year olds,
*Confirmed its ranking as the leading DTT channel for the commercial
target, with audience ratings of 4.2% (Source Médiamétrie),
*Consolidated its ranking as leading DTT channel in the strategic 6pm-11pm
*Was the DTT channel which broadcast the largest number of high-profile
programmes, showing 267 programmes attracting at least 1.0 million
More generally, digital channels contributed €30.9million to consolidated
EBITA, representing an operating margin from recurring operations of 16.6%.
Diversification and Audiovisual Rights
Advertising and non-advertising revenues from Diversification and Audiovisual
Rights decreased by 2.7% in 2012, whilst the divisional contribution to EBITA
increased significantly (up 12.8%):
*Revenues of the Audiovisual Rights receded slightly due to fewer video
*M6 Web strengthened its position in both the mobile phone and online
*Ventadis (teleshopping and e-commerce) reported stable revenues and an
increase in EBITA;
*The Interactions division’s operating profit increased due to numerous
musical successes (Génération Goldman, Sister Act, etc.)
*Finishing 5^th in the French Ligue 1 Championship in 2011/2012 and
competing in the Europa League enabled F.C.G.B. to reduce its losses
compared to the previous season.
Diversification and Audiovisual Rights saw their operating margin from
recurring operations increase 1.2 percentage point to 8.9%
Change in financial position
At 31 December 2012, Group equity totalled €687.6 million, compared to €693.7
million€at 31 December 2011. The net cash position was €317.5 million,
compared to €329.4 million at 31 December 2011, following implementation of
the share buyback programme and subsequent cancellation in the 2^nd quarter
(500,000 shares cancelled during the financial year at a total cost of €4.9
Bolstered by its strong financial position, the M6 Group reaffirms its
strategic commitment to invest in its main businesses, yet considers that the
current yields achieved by its cash and cash equivalents has an adverse impact
on its return on capital.
At the Combined General Meeting called for 13 May 2013, the Management Board
will therefore propose the payment of a dividend of €1.85 per share,
*An ordinary dividend of €0.85 per share for the 2012 financial year, and
*An extraordinary dividend of €1.00.
The ex-dividend date will be 20 May and dividends will be paid on 23 May 2013.
This transaction will allow the Group to return to a more standard balance
sheet structure, without undermining its ability to finance significant
potential investment projects in the French market. The Group will retain
substantial cash surpluses once these €232 million cash dividends have been
The FY 2012 results presentation will be broadcast on 20 February 2013,
starting at 9:30 am (CET), on: www.groupem6.fr.
All details on how to access the conference call are available on
The slideshow presentation and the annual consolidated financial statements
will be available online from 08:30 am (CET), it being specified that audit
procedures have been carried out and the auditors’ report on the financial
statements is pending.
Next release: Q1 2013 quarterly information on 13 May 2013 before market
M6 Métropole Télévision is a company listed on Euronext Paris, compartment A
Ticker: MMT, ISIN Code: FR0000053225
INVESTOR RELATIONS CONTACT
Eric Ghestemme, +33 1 41 92 59 53
Yann de Kersauson, +33 1 41 92 73 50
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