Consolidated revenue: €997.0 m, up 12.5%
EBITA: €179.7 m, up 12.4%
Group share of net profit: €125.8 m, up 33.1%
Disposal of FCGB
Regulatory News:
M6 METROPOLE TELEVISION (Paris:MMT):
At its meeting of 5 November 2018, the Supervisory Board reviewed the 2018 3rd quarter financial statements approved by the Executive Board.
Owing to today's completion of the sale of FCGB to the US investment fund GACP, M6 Group has applied IFRS 5 Non-Current Assets Held for Sale.
As such, consolidated Group sales and EBITA no longer include Girondins de Bordeaux figures. Data published in 2017 has been restated accordingly.
In addition, monAlbumPhoto was sold at the end of July. From August, consolidated revenue and EBITA therefore no longer include its contribution.
H1 | Q3 | 9 months | ||||||||||||||||||||||
(€ millions) 1 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
Multi-media advertising revenue | 527.1 | 445.3 | +18.4% | 212.8 | 179.0 | +18.9% | 739.9 | 624.2 | +18.5% | |||||||||||||||
of which FTA channels' advertising revenue | 417.7 | 413.8 | +0.9% | 166.0 | 165.3 | +0.4% | 583.7 | 579.2 | +0.8% | |||||||||||||||
of which other advertising revenue | 109.4 | 31.4 | +248.0% | 46.8 | 13.6 | +243.6% | 156.2 | 45.1 | +246.7% | |||||||||||||||
Non-advertising revenue | 176.1 | 181.1 | -2.8% | 81.0 | 80.8 | +0.2% | 257.1 | 262.0 | -1.8% | |||||||||||||||
Consolidated revenue | 703.2 | 626.4 | +12.3% | 293.8 | 259.8 | +13.1% | 997.0 | 886.2 | +12.5% | |||||||||||||||
Profit from recurring operations (EBITA2 | 147.1 | 122.8 | +19.8% | 32.6 | 37.1 | -12.1% | 179.7 | 159.9 | +12.4% | |||||||||||||||
Margin from recurring operations | 20.9% | 19.6% | +1.3 pp | 11.1% | 14.3% | -3.2 pp | 18.0% | 18.0% | +0.0 pp | |||||||||||||||
Group share of net profit | 79.5 | 69.1 | +15.1% | 46.2 | 25.4 | +81.8% | 125.8 | 94.5 | +33.1% | |||||||||||||||
Over the nine months to end September 2018, M6 Group posted revenue of €997.0 million an increase of 12.5% in comparison with the 9 months to the end of September 2017 as a result of the integration of the Radio division.
Over the 3rd quarter of the 2018 financial year, M6 Group's consolidated revenue was €293.8 million, an increase of 13.1%.
Consolidated EBITA for the 9 months to the end of September 2018 was €179.7 million, an increase of €19.8 million in relation to the first 9 months of 2017. This growth reflects the dynamism of the TV division and the integration of the Radio division.
Margin from recurring operations remained at a high level, at 18.0% (as for the first 9 months of 2017).
Consolidated profit from recurring operations (EBITA) totalled €32.6 million in the 3rd quarter of 2018, vs. €37.1 million for the 3rd quarter of 2017. The decrease in EBITA was due to the growth in television content investments, resulting from programmes scheduled for the 1st half being carried over into the 3rd quarter, a fall in the contribution of the Ventadis division and the change in the taxation of employee share ownership plans3
For the 9 months to the end of September 2018, Group share of net profit rose to €125.8 million, a year-on-year increase of €31.3 million, thanks to the growth in EBITA, the capital gain from the sale of monAlbumPhoto (€12.4 million), and the net profit posted by FCGB (up €3.6 million), reflecting the success of the Group's strategy of combining its continued investments in its core business and the turnover of its diversification portfolio.
Group share of net profit stood at €46.2 million over the quarter, vs. €25.4 million in Q3 2017. This growth of €20.8 million was primarily due to the €12.4 million capital gain on the disposal of monAlbumPhoto and FCGB's net profit (up €12.6 million) following the summer transfer window.
1 The information provided is intended to highlight the breakdown of consolidated revenue between advertising and non-advertising revenue. Group advertising revenue includes the advertising revenue of free-to-air channels M6, W9 and 6ter and the 6play platform, 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 Due to the Law of 6 August 2015 to promote economic growth, activity and equal opportunities (the "Macron Law")
Television
Television | |||||||
(€ millions) | 2018 | 2017 | |||||
Revenue FTA channels advertising | |||||||
1st Quarter | 203.2 | 196.6 | +3.4% | ||||
2nd Quarter | 214.5 | 217.3 | -1.3% | ||||
3rd Quarter | 166.0 | 165.3 | +0.4% | ||||
9 months | 583.7 | 579.2 | +0.8% | ||||
Revenue Other TV | |||||||
9 months | 94.5 | 77.4 | +22.1% | ||||
Total TV segment revenue | |||||||
9 months | 678.2 | 656.6 | +3.3% | ||||
Within a market that continues to suffer from reduced visibility but which experienced growth, and within a context marked by the competition of the broadcast in July of the 2018 FIFA World Cup, free-to-air channels' advertising revenue grew by 0.4% in the 3rd quarter and 0.8% over the first 9 months of 2018.
6play's advertising business continued to grow, driven by this dynamic platform which currently has almost 23 million registered OTT users.
Lastly, the TV division's non-advertising revenue benefitted from the distribution agreements signed at the start of the year, which secure the broadcast of Pay-TV channels by linking the latter to payment for the free-to-air channels and their related services.
Radio
(€ millions) | 2018 | 2017 |
| ||||
1st Quarter | 34.8 | ||||||
2nd Quarter | 42.9 | ||||||
3rd Quarter | 34.4 | ||||||
9 months | 112.2 | ||||||
Within a market that grew over the 3rd quarter, revenue from the Radio division posted a year-on-year increase to €34.4 million, due in particular to the strong performance of RTL, the most popular station in France, RTL2 and Fun Radio.
Production and Audiovisual Rights
(€ millions) | 2018 | 2017 | |||||
1st Quarter | 17.7 | 29.8 | -40.6% | ||||
2nd Quarter | 14.2 | 19.5 | -27.1% | ||||
3rd Quarter | 16.7 | 19.1 | -12.3% | ||||
9 months | 48.6 | 68.4 | -28.9% | ||||
Revenue from the Production and Audiovisual Rights division stood at €16.7 million in the 3rd quarter of 2018, a decline of 12.3% year-on-year. The 3rd quarter of 2017 saw an exceptional level of international sales thanks to the film Seven Sisters, produced and distributed by SND.
Cinema admissions remained stable year-on-year, with 2.7 million over the quarter, marked in particular by the success of Neuilly sa mère sa mère which recorded 1.2 million admissions.
Diversification
(€ millions) | 2018 | 2017 | |||||
1st Quarter | 57.7 | 57.5 | -2.5% | ||||
2nd Quarter | 53.0 | 52.2 | +1.5% | ||||
3rd Quarter | 47.1 | 51.3 | -8.0% | ||||
9 months | 157.8 | 161.0 | -2.0% | ||||
Diversification revenue stood at €47.1 million for the 3rd quarter of 2018, a decrease of €4.1 million. This fall was entirely due to the disposal and deconsolidation of monAlbumPhoto, sold at the end of July and whose sales during that month stood at €1.6 million, compared with €5.9 million over the whole quarter in 2017.
Financial position
At 30 September 2018, Group equity totalled €674.7 million (€625.8 million at 30 June 2018) with a negative net cash position of €68.5 million, an improvement of €46.7 million compared with 30 June 2018.
Over the 4th quarter, the Group's cash position will benefit from the sale of FCGB.
Disposal of FCGB
M6 Group has today finalised the sale of the Football Club Girondins de Bordeaux to the US investment fund General American Capital Partners (GACP) for €100 million.
The transaction improves the Group's overall cash position by €84 million, equivalent to the receipts related to the transaction to date with the €16 million balance being carried over into 2019 and 2020.
Moreover, the Group's off-balance-sheet commitments, which were entered into in 2015 with the City of Bordeaux as a guarantee for future rental payments for the stadium, have been reduced by €122 million.
Governance
Following the resignation of Cécile Frot-Coutaz, the Supervisory Board of M6 Group, at its meeting of 5 November 2018, co-opted Juliette Valains, VP Global Operations Management Digital Diversification of RTL Group, to replace her for the remainder of her term of office, i.e. until the Annual General Meeting to be held in 2019.
Moreover, the Supervisory Board noted the appointment on 13 October 2018 by the Social and Economic Committee of Métropole Télévision of Sophie de Bourgues, Group Deputy General Counsel, as a member of the Board representing employees, for a 4-year term of office ending 13 October 2022.
Outlook
Despite an unfavourable base effect in the 4th quarter, the Group's advertising revenue should post a year-on-year increase driven by the performances of the TV, radio and digital antennas.
Next release: 2018 full-year financial information on 19 February 2019 after close of trading
M6 Métropole Télévision is listed on Euronext Paris, Compartment A
Ticker: MMT, ISIN Code: FR0000053225
View source version on businesswire.com: https://www.businesswire.com/news/home/20181106005707/en/
Contacts:
INVESTOR RELATIONS
Eric Ghestemme, +33 (0)1 41 92 59 53
eric.ghestemme@m6.fr
or
PRESS
Adélaïde de La Bourdonnaye, +33 1 41 92 61 36
adelaide.delabourdonnaye@m6.fr