M6 Metropole Television: Third Quarter 2021

Rhea-AI Summary

M6 Group reported strong financial results for Q3 2021, with advertising revenue of €239.5 million, a rise of 5.9%. Over the first nine months of 2021, consolidated revenues reached €953 million, up 11.3%. EBITA for the period stood at €223.5 million, reflecting a 61.5% increase from 2020. Operating margin improved to 23.4%. The group's strategic focus on TV and radio continues to pay off, as evidenced by a recovery in advertising investments and increased viewer engagement. Challenges persist in non-advertising revenue, which fell significantly year-on-year.

Positive

• Advertising revenue increased by 5.9% in Q3 2021.
• Consolidated revenues for the first nine months rose to €953 million, up 11.3%.
• EBITA for the nine months increased by 61.5% to €223.5 million.
• Operating margin improved to 23.4%, up from 16.2% in 2020.

Negative

• Non-advertising revenue declined by 26.1% in Q3 2021 compared to the previous year.
• Radio revenue decreased by 10.6% in Q3 2021 against Q3 2020.

Advertising revenue: €239.5m, up 5.9%

EBITA: €58.4m, up 8.2%

FIRST NINE MONTHS OF 2021

Advertising revenue: €768.6m, up 22.6%

EBITA: €223.5 m, up 61.5% vs 2020 / up 22.5% vs 2019

Operating margin: 23.4% (up 7.3 pp)

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

M6 Metropole Television (Paris:MMT):

			H1										Q3										9 months
(€ millions)			2021		2020		%		2019		%		2021		2020		%		2019		%		2021		2020		%		2019		%
Multimedia advertising revenue			529.1		400.6		+32.1%		539.3		-1.9%		239.5		226.2		+5.9%		220.5		+8.6%		768.6		626.8		+22.6%		759.8		+1.2%
- of which TV advertising revenue			453.8		338.6		+34.0%		454.3		-0.1%		205.0		188.0		+9.0%		182.6		+12.3%		658.8		526.6		+25.1%		636.9		+3.4%
- of which other advertising revenue			75.3		62.0		+21.4%		85.0		-11.4%		34.5		38.2		-9.6%		37.9		-8.9%		109.8		100.2		+9.6%		122.9		-10.6%
Non advertising revenue			115.9		156.7		-26.1%		175.3		-33.9%		68.5		72.5		-5.6%		74.1		-7.6%		184.4		229.2		-19.6%		249.4		-26.1%
Consolidated revenue1			645.0		557.3		+15.7%		714.6		-9.7%		308.0		298.7		+3.1%		294.5		+4.6%		953.0		856.1		+11.3%		1 009.1		-5.6%
Profit from recurring operations (EBITA2)			165.0		84.4		+95.7%		148.3		+11.3%		58.4		54.0		+8.2%		34.2		+70.9%		223.5		138.3		+61.5%		182.4		+22.5%
Operating margin from recurring operations			25.6%		15.1%		+10.5 pp		20.7%		+4.8 pp		19.0%		18.1%		+0.9 pp		11.6%		+7.4 pp		23.4%		16.2%		+7.3 pp		18.1%		+5.4 pp

M6 Group (Paris:MMT) recorded consolidated revenues of €308.0 million, an increase of 3.1% (€9.2 million) over the third quarter of 2021 compared with the third quarter of 2020, driven by advertising revenue, which grew 5.9% (€13.3 million) due to healthy investments in television by advertisers against the backdrop of a sustained recovery in consumer spending over the summer.
Restated for scope effects (Home Shopping Service contributed to Q3 2020 revenue prior to its sale on 1 October 2020), non-advertising revenue grew 16.9% (€9.9 million), fuelled by the film distribution activity.

Consolidated profit from recurring operations (EBITA) reached €58.4 million, an increase of 8.2% (€4.4 million) in comparison with the third quarter of 2020, the Group having stepped up its investments in programmes, notably in French drama, thanks to the savings generated in the first half-year.

Over the first nine months of 2021, M6 Group recorded revenues of €953.0 million, up 11.3% (€96.9 million) thanks to advertising activity bouncing back to the same levels as the first nine months of 2019 (up 22.6% at the end of September 2021).

For the nine months to the end of September 2021, consolidated EBITA stood at €223.5 million, compared with €138.3 million for the nine months to the end of September 2020 and €182.4 million for the same period in 2019. It includes €18.7 million in government support (of which €1.7 million in the third quarter) and €4.5 million in charges relating to the planned merger between M6 and TF1 (of which €1.0 million in the third quarter).
Operating margin thus stood at 23.4% (22.0% excluding exceptional items – government support and charges relating to the proposed M6/TF1 merger), against 16.2% in 2020 and 18.1% in 2019. This performance reflects the relevance of the Group’s strategic refocusing on TV and Radio (acquisition of the Youth TV division on 1 September 2019), and optimised management of its programming costs (despite the overspend in relation to Euro 2020) and other expenses.

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Television

(€ millions)		2021		2020		%		2019		%
TV advertising revenue
1st Quarter		204.0		202.9		+0.5%		221.8		-8.0%
2nd Quarter		249.8		135.7		+84.1%		232.5		+7.5%
3rd Quarter		205.0		188.0		+9.0%		182.6		+12.3%
Total 9 months		658.8		526.6		+25.1%		636.9		+3.4%
Other TV revenue
Total 9 months		86.4		71.2		+21.3%		58.3		+48.1%
Total TV segment revenue
Total 9 months		745.1		597.8		+24.6%		695.2		+7.2%

In September, Individual Viewing Time for Television remained at a high level, standing at 3 hrs 16 min³ on average each day across the viewing public as a whole, down 13 minutes compared with September 2020 but up 4 minutes compared with September 2019.

M6 Group’s four free-to-air channels achieved an average audience share of 22.7%⁴ on the commercial target of women under 50 responsible for purchasing, representing a slight year-on-year increase of 0.1 percentage point compared to September 2020.
The M6 channel stood out over this back-to-school season thanks to its progress in the strategic primetime slot (9.00-10.45pm), with a WRP>50 audience share of 19% (up 1 pp). In particular, it was the clear leader on Monday evenings with L’Amour est dans le pré (WRP>50 audience share reaching 34%) and its French drama Ils étaient 10 was popular with audiences (20% WRP>50 audience share), particularly in catch-up where its audience was up 31% after seven days. The broadcast of the French football team’s matches proved popular once more, with the Nations League final attracting 8.1 million viewers in France (36% audience share among WRP>50, and above all, 56% amongst men under 50).

Following the upturn seen in the second quarter, the advertising market maintained its upward trajectory in the third quarter, thanks to consumer spending that continued at healthy levels and the broadcast of major sporting events, such as Euro 2020 in July. Against this backdrop and despite a more challenging comparison base (3.0% growth in advertising revenue in Q3 2020), advertising revenues for the TV division posted growth of 9.0% in the third quarter (up 12.3% vs. Q3 2019).

Radio

(€ millions)		2021		2020		%		2019		%
Radio revenue
1st Quarter		34.2		31.5		+8.8%		35.5		-3.4%
2nd Quarter		38.8		28.4		+36.5%		46.8		-17.1%
3rd Quarter		33.3		37.2		-10.6%		36.2		-8.1%
Total 9 months		106.3		97.1		+9.4%		118.5		-10.3%

Over the July-August 2021 summer wave, the RTL Radio division retained its position as France’s leading private radio group with an audience share of 16.8%⁵ among listeners aged 13 and over (up 0.4 pp).
RTL, which achieved an 11.3% audience share (up 0.6 pp) is the joint leading radio group in France (alongside France Inter).

Within an advertising market that is particularly sensitive to public health measures and faced with a challenging comparison base (2.8% growth in radio revenues in Q3 2020), revenues for M6 Group’s Radio division fell 10.6% (down 8.1% vs. Q3 2019).

Production and audiovisual rights

(€ millions)		2021		2020		%		2019		%
Production and audiovisual rights revenue
1st Quarter		9.6		15.9		-39.5%		19.7		-51.3%
2nd Quarter		10.2		13.4		-23.9%		20.4		-49.9%
3rd Quarter		22.7		16.9		+34.5%		12.0		+88.3%
Total 9 months		42.5		46.1		-7.9%		52.1		-18.5%

Revenue from the Production and Audiovisual Rights division stood at €22.7 million in the third quarter of 2021, a year-on-year increase of 34.5%.
Within an environment that continues to be marked by Covid restrictions, notably with the introduction of the “Covid certificate” in July, SND pursued its policy of supporting cinema operators by maintaining film releases.
4 films were released during the third quarter, generating 3.6 million admissions⁶, compared with 2.3 million in 2020. Adapted from M6’s popular comedy series, Kaamelott: Premier volet alone recorded 2.6 million admissions over the period. To date it represents the biggest success for a French film in 2021.

Diversification

(€ millions)		2021		2020		%		2019		%
Diversification revenue
1st Quarter		20.3		44.9		-54.8%		51.9		-60.9%
2nd Quarter		20.7		36.3		-42.9%		50.7		-59.2%
3rd Quarter		17.3		33.3		-48.0%		40.5		-57.3%
Total 9 months		58.3		114.4		-49.0%		143.1		-59.3%

Diversification revenue totalled €17.3 million over the third quarter of 2021, a fall of €15.9 million in comparison with the third quarter of 2020, which was primarily due to the deconsolidation of the home shopping activity sold in October 2020 (€13.9 million in revenue over the third quarter of 2020).

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Financial position

The Group had shareholders’ equity of €1,030.4 million at 30 September 2021, compared with €995.5 million at 30 June 2021, an increase of €34.9 million, reflecting the operational performance seen in the third quarter.

The Group had a net cash position of €151.0 million⁷ at 30 September 2021, compared with €38.4 million at 30 June 2021.

Outlook

The Group is approaching the last quarter with intent, notably in relation to the programming schedule for its channels.

The TV advertising market should return to 2019 levels, despite certain sectors being hit by supply difficulties (primarily Toys and Automotive).

Lastly, the regulatory review of the planned merger with TF1 Group is continuing in line with the schedule announced.

Next release: 2021 full-year financial information on 15 February 2022 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

⁴ Source: Médiamétrie Mediamat

⁵ Source: Médiamétrie Radio summer schedules

⁶ Source: CBO Box-office

⁷ 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/20211026005814/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

Source: M6 METROPOLE TELEVISION

FAQ

What were M6 Group's advertising revenue figures for Q3 2021?

M6 Group reported advertising revenue of €239.5 million for Q3 2021, representing a 5.9% increase.

How much did M6 Group's EBITA increase in the first nine months of 2021?

The EBITA for M6 Group increased by 61.5%, reaching €223.5 million for the first nine months of 2021.

What is the operating margin reported by M6 Group for Q3 2021?

M6 Group reported an operating margin of 23.4% for Q3 2021.

What is the trend in non-advertising revenue for M6 Group in Q3 2021?

Non-advertising revenue for M6 Group declined by 26.1% in Q3 2021 compared to the same period in 2020.

How did M6 Group's consolidated revenue perform in the first nine months of 2021?

Consolidated revenue for M6 Group in the first nine months of 2021 reached €953 million, an increase of 11.3%.