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M6 Group: Consolidated Results at 31 December 2012

  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

Business Wire

NEUILLY SUR SEINE, France -- February 19, 2013

Regulatory News:

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
Board.

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%
(EBITA)
                                                                   
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
6.3%).

                                      *

                                     * *

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%
channels
Diversification
and Audiovisual   384.0   391.9     -2.0%   152.3   159.2   -4.4%    536.3     551.1     -2.7%
Rights
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%
revenues
                                                                                         
M6 FTA Network    -       -         -       -       -       -        142.5     175.7     -18.9%
Digital           -       -         -       -       -       -        30.9      34.3      -9.9%
channels
Diversification
and Audiovisual   -       -         -       -       -       -        47.8      42.4      +12.8%
Rights
Eliminations
and unallocated   -      -        -      -      -      -       -2.7     -7.4     n.s
items
Consolidated
current           -      -        -      -      -      -       218.5    245.0    -10.8%
operating
income (EBITA)

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
channel.

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
million.

The M6 FTA network (M6 channel, advertising agency and production
subsidiaries) thus generated an operating margin from recurring operations
(EBITA/revenue) of 21.5%.

Digital Channels

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,
    source Médiamétrie),
  *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
    time slot.
  *Was the DTT channel which broadcast the largest number of high-profile
    programmes, showing 267 programmes attracting at least 1.0 million
    viewers.

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
    releases;
  *M6 Web strengthened its position in both the mobile phone and online
    advertising markets;
  *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
million).

                                      *

                                     * *

Dividends

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,
comprising:

  *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
paid.


NOTE:

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
www.groupem6.fr/Finances

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
                                   opening
 M6 Métropole Télévision is a company listed on Euronext Paris, compartment A
                     Ticker: MMT, ISIN Code: FR0000053225

Contact:

M6 Group
INVESTOR RELATIONS CONTACT
Eric Ghestemme, +33 1 41 92 59 53
eghestemme@m6.fr
or
PRESS CONTACT
Yann de Kersauson, +33 1 41 92 73 50
ydekersauson@m6.fr
www.groupem6.fr