REVENUES STABLE AND GROWTH IN PROFIT FROM
RECURRING OPERATIONS (EBITA) IN THE 2ND QUARTER AFTER
A 1ST QUARTER IN DECLINE
Regulatory News:
M6 Métropole Télévision (Paris:MMT):
(€ millions)
Q2 2014 HY1 2014
Consolidated revenues 322.2
-0.2% 634.4
0.0%
Consolidated EBITA 70.5
+2.3% 112.3
-13.4%
At its meeting of 29 July 2014, the Supervisory Board reviewed
the HY1 2014 financial statements approved by the Executive Board.
1
(€ millions)
30-Jun-14 30-Jun-13
restated
% change Consolidated
revenues 634.4 634.7 0.0% Group
advertising revenues 400.4 416.2 -3.8% - of which free-to-air
channels advertising revenues 377.8 392.4 -3.7% - of which cab-sat
channels and other media advertising revenues 22.5 23.8 -5.3%
Non-advertising revenues 234.0 218.5 +7.1%
Consolidated profit from recurring operations (EBITA)
112.3 129.7 -13.4% Operating income and
expenses related to business combinations (0.2) (0.1) 212.7%
Consolidated operating profit (EBIT) of continuing
operations 112.1 129.6 -13.5% Net
financial income 1.8 3.9 -52.7% Share of profit of
associates 0.0 (0.0) -334.6% Deferred and current taxes
(48.3) (57.7) -16.2%
Net profit of continuing
operations 65.7 75.8 -13.3% Net
profit/(loss) of discontinued operations 0.0 (2.3) -101.4%
Net profit for the period 65.7
73.5 -10.6% Net profit for the period - Group
share 65.8 73.5 -10.5%
During the first half of 2014, M6 Group posted
consolidated revenues of €634.4 million, stable year-on-year
in unfavourable market conditions.
The Group’s advertising revenues (free-to-air channels, pay
channels and Internet) fell by 3.8%, in line with the economic
climate, whilst non-advertising revenues posted growth of
7.1%, thanks in particular to the momentum of the
distance-selling activities since the acquisition of Best of
TV on 7 January 2014 and the sale of Mistergooddeal on 31 March
2014.
Following a decline of €18.9 million during the first quarter,
the Group’s EBITA rose in the second quarter, demonstrating
the Group’s capacity to control its costs in
difficult conditions. During the first half of the 2014 financial
year, M6 Group’s consolidated profit from recurring operations
(EBITA) thus totalled €112.3 million, down €17.4 million,
primarily due to the fall in advertising revenues.As a result,
the consolidated margin from recurring operations was 17.7%
compared with 20.4% at 30 June 2013.
Net financial income totalled €1.8 million against €3.9 million
for HY1 2013, which included a capital gain of €1.7 million on the
disposal of Summit securities.
The tax charge totalled €48.3 million, down €9.4 million
year-on-year, which included in particular €7.4 million due to
the decrease in operating profit, and €3.8 million due to the
decrease in the amount paid in tax on dividends.
Net profit therefore came to €65.7 million, i.e. a net margin
of 10.4%, vs. 11.6% for HY1 2013.
*
* *
In accordance with IFRS 8, the contribution to revenues and
EBITA of the Group’s 3 operating segments is as follows:
Q1 Q2 HY1
(€ millions)
2014 2013 r
% 2014 2013 r % 2014 2013
r % TV 195.8 199.5 -1.9% 212.3 226.5 -6.3% 408.1
426.0 -4.2% Production & Audiovisual Rights 30.7 31.7 -3.3%
24.8 17.9 +38.4% 55.4 49.6 +11.8% Diversification 85.7 80.5 +6.5%
85.0 78.4 +8.4% 170.7 158.9 +7.4% Other revenues 0.1 0.1 n.a
0.1 0.1 n.a 0.2 0.2 n.a
Consolidated revenues 312.2
311.8 +0.2% 322.2 322.9
-0.2% 634.4 634.7
0.0% TV 80.1 96.0 -16.6% Production & Audiovisual
Rights 2.8 5.9 -51.8% Diversification 31.5 28.2 +11.8%
Eliminations and unallocated items (2.1) (0.4) n.a
Consolidated profit from
recurring operations (EBITA) 41.8 60.7
-31.1% 70.5 68.9
+2.3% 112.3 129.7 -13.4%
Television
During the first half of 2014, the advertising revenues for the
free-to-air channels recorded a fall of 3.7%, in a television
advertising market characterised by limited visibility and
unfavourable price effects.Against this backdrop, the Group pursued
its commercial innovations, such as the Puissance TNT offer,
launched on 5 January, which was very well received by advertisers
and has become the leading DTT advertising platform.
In an environment marked by growing fragmentation (gains in
market share for the 6 new HD DTT channels) and by the broadcast of
exceptional sporting events on rival channels (Winter Olympics in
February and the FIFA World Cup in June), M6 Group’s free-to-air
channels achieved an average audience share of 13.3%
over the first half of 2014 (source - Médiamétrie) in the 4+ years
old category (down 0.7 pp) and of 20.5% on the commercial
target (down 0.3 pp):
- The M6 channel maintained its
second place ranking in the under 50’s category throughout the day,
thanks to its strong brands (Scènes de Ménages, L’Amour est dans le
pré, Le 19’45, etc.) and to the effectiveness of new access
prime-time programming (Les Reines du shopping, La meilleure
Boulangerie de France).
- W9 retained its DTT leadership
both in early prime time and amongst the under 50’s throughout the
day;
- 6ter established itself as the
top new DTT channel in the housewives under 50 years old
category.
The TV division contributed €80.1 million to EBITA, against
€96.0 million at 30 June 2013, equating a margin from recurring
operations of 19.6%, which includes the investment effort in 6ter
and a programming cost for the free-to-air channels totalling
€205.3 million, an increase of 1.1%.
Production and Audiovisual Rights
In the first half of 2014, revenues from Production and
Audiovisual Rights operations totalled €55.4 million (up 11.8%
compared with HY1 2013), with a €3.0 million fall in
EBITA due to a less favourable video release schedule than in
the first half of 2013, which was marked by the release of the
video Twilight 5.
The first half of 2014 was notable for the box-office success of
Fiston (1.9 million admissions), Yves-Saint Laurent (1.6 million),
Divergente (1.5 million) and Le Crocodile du Botswanga (1.2 million
admissions), all co-produced and/or distributed by the Group.
Diversification
During the first half of 2014, Diversification revenues
totalled €170.7 million (up 7.4% compared with the first half
of 2013), with an increase in contribution to EBITA (up €3.3
million), primarily due to:
- M6 Web, whose profit from
recurring operations rose from €15.8 million to €17.5 million;
- Ventadis, which saw it revenues
and EBITA deliver strong growth thanks to the healthy performances
of tele-shopping and the integration of Best of TV,
acquired in January 2014. Its operating margin was 11.7%;
- F.C.G.B, which managed to post a
positive half-year operating profit (up €0.2 million) thanks to its
policy of controlling employment costs, despite poorer Europa
League and French Cup performances than in 2013.
The profit from recurring operations from Diversification
reached 18.5% in the first half of 2014.
*
* *
Change in the financial position
At 30 June 2014, Group equity amounted to €516.9 million, with a
net cash position of €174.7 million (down €20.5 million in
comparison with 30 June 2013, due to investments made over the
period).
*
* *
HY2 2014 outlook
The Group remains cautious in the absence of any visibility over
the advertising market for the final 5 months of 2014.
A conference call will take place on 29 July 2014 at 6.30pm
(CEST). A webcast will be broadcast on the website www.groupem6.fr
(Finance section). .
All details to follow the conference call
by phone are available on the website. Both slideshow and HY1
consolidated financial statements will be online at 6:00 pm. The
statutory auditors have conducted their limited review of the
financial statements and have issued an unqualified report.
Next release: Q3 financial information on
28 October 2014 after close of trading
M6 Métropole Télévision is listed on
Euronext Paris, compartment A. Ticker MMT, ISIN Code:
FR0000053225
www.groupem6.fr
1 The financial information is aimed at disclosing consolidated
revenues breakdown depending on advertising and non-advertising.
The Group advertising revenues include M6, W9 and 6ter (FTA
channels) advertising revenues, the share of advertising revenues
of pay channels and the share of advertising revenues generated by
diversification activities (mainly Internet). The profit from
recurring operations, also called EBITA, is defined as 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.
M6 Métropole TélévisionINVESTOR RELATIONS CONTACTEric
Ghestemme, Tel +33 1 41 92 59 53eghestemme@m6.frorPRESS CONTACTYann
de Kersauson, Tel +33 1 41 92 73 50ydekersauson@m6.fr
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