M6M6 GroupGroup EuropeanEuropean MediaMedia ForumForum 1717 MayMay 20062006
1 Overview
2005 Reminder
Q1 2006 Audiences
Q1 2006 Revenues
DTT
New growth drivers
Conclusion
2 Key Group financial results
€M
+6.4% 2004 2005 1274.7 +6.0% 1197.6 194.8 185.4 +6.7% 1079.9 1012.2 786.5 737.0 +16.3% +21.3%
186,1 +3.9% 184,8 +8.4% 552.2 600.4 212.0 229.8 242.3 248.6 258.4 208.4 8.7 8.7 156.2 0.6 0.6 128.8 5.1 211.4 221.1 207.8 233.6 -2.1 130.9 151.1
ChiffresTurnover d'affairesd'affairesProgramming Coût Coût de de grille grilleOther Autres Autres operating charges charges EBITAEBITA EBIT EBIT EBITNet Résultat Résultat Profit netGroup net part part du du opérationnelles groupe costs expenses share
3 2005 financial year highlights
Record audiences Advertising performance in a stable market at + 0.3 % (gross data) 19.1% 12.6% < 50 y.o housewives 4 + y.o. individuals audience share audience share + 4.0 % 23.2% Market share Advertising revenues growth (gross data) M6 progresses in its commercial targets
+ 0.5 pt + 0.1 pt + 0.9 pt M6 market share gain < 50 y.o housewives 4 + y.o. individuals 15-34 y.o individuals + 1.1 basis points Controlled programming costs Thematic channels Launch of new channels Launch Acquisitions €M 258.4 Progression limited to + 3.9% with record audience increases Pay TV Mistergooddeal Commercial success Internet destocking site TPS – Canal+ Group agreement with 300,000 subscribers (at 21 February 2006) Citato Free monthly aimed at 15 -25 y.o Net cost of DTT (excl TPS) EBITA 2005 SNC Films catalogue 13.0 €M in 2005 (incl. W9 result) vs. 1.3 €M in 2004 + €M 1.8 e 2006 costs : 16 €M 4 Overview
2005 Reminder
Q1 2006 Audiences
Q1 2006 Revenues
DTT
New growth drivers
Conclusion
5 M6 : Housewives<50 audience share still at a very high level after 2005 records
Q1 2006 (week 1 to 18) Hwives <50 years old audience share in %
35.7 35.5 34.3
-1.2 2004 2005 2006
19.5 20.2 19.8 16.6 15.5 15.7 -0.4 12.5 11.0 10.2 10.4 10.6 9.3 +0.2 -0.2 -0.2
+0.2 3.9 +1.9 3.5 3.3 2.7 3.0 2.8
Other TVs
6 Ever more powerful and federative Prime Times
40 Prime Times over 4.0M viewers in 2006 One PT out of three (37% of Prime Times) Against 37 Prime Times in 2005
Prime time > 4 million viewers
40 37 +3+3+3 +7+7+7 30
2004 2005 2006 1 night out 4 1 night out 3 1 night out 3
Source: Médiamétrie – weeks 1 to 17 7 Success for the three episodes of BACK TO THE FUTURE (5.0M viewers in average )
4+ y.o. Hswes-50
31.8 28.4 28.9
21.9 21.5 18.9
4.7M 5.4M 5.0M
Best rating for a movie on M6 since STAR WARS (2005)
Monday, April 17th Monday, April 24th Monday, May 1st 8 NOUVELLE STAR : season after season, ratings top new records
The fourth season is doing better than ever against a tough competition on Thursday nights
4+ y.o. Hswes-50 34,2 30,3 28,8 25,4
21,1 18,8 16,4 17,3
3.1M 3.9M 4.2M 4.8M
NOUVELLE STAR / Season 1 NOUVELLE STAR / Season 2 NOUVELLE STAR / Season 3 NOUVELLE STAR / Season 4
9 UN DOS TRES leader among young people in access prime-time
UN DOS TRES allows M6 to be the first channel in access Prime Time on the 15-24 target
4+ H<50 15-24
46.0
24.1
13.6
M6 - UN DOS TRES (18h+19h)
10 Enlargement of M6’s audience
Evolution of channels’ audience profile jan-apr 2006 and point evolution (jan-apr 2006 vs jan-apr 2001)
21.4 -4.3
40.6 +10.7 47.5 +0.4 46 +0.7 +4.4 62.1 61.2 +1.8
1 50.4 +5.5
0
0
2
r
p
a
-
v
n
a
j
s 45 -3.4
v
6 36.2 38.1 +1.5
0 +1.4 +2.4
0
2
r
p a
- 26.6 v -1.6 -1.0
n 29.3
a
j
e
i
r t
é 28.1 -1.1
m
a
i d é 16 16 15 -5.8
M -2.2 -3.4 12.3 / t -3.6 -1.5
r 8.5
o
p
e
r
é
l
é
T
: All TVs
e
c
r
u o S 4-24 y-o 25-49 y-o >50 y-o 11 M6 is the 2nd favourite channels for housewives < 50 y-o for the 5th year in a row (data : 1990 – 2006)
45 40,0 38,6 40 35,9 36,2 34,7 35
30
25 21,5 19,9 19,2 19,1 19,8 20 15,7 18,1 15,6 15 16,3 12,5 10,0 13,8 10,6 Other TVs 10 12,7 9,7 6,9 10,3 10,4 5 2,8 1,5
0 1990 1995 2000 2005 2006 jan-apr Source Téléreport Médiamétrie 12 Coming soon in May and June…
FIFA World Cup 2006 31 matchs live on M6 featuring :
• 3 prime-times (including Brazil-Croatia) • 4 second round games • 2 quarter finals
Desperate Housewives, Season 1 for the first time on a free-to-air channel in France
A complementary strategy to be more federative 13 Overview
2005 Reminder
Q1 2006 Audience
Q1 2006 Revenues
DTT : First audiences
New growth drivers
Conclusion
14 Q1 2006 sales : a steady growth +15.7%
in M€ 307.5 M€ 355.9 M€ + 15.7 %
+8.1% on a constant scope
47.3 + 1.1 % Discontinuing activities (TPS) 46.8
139.9 + 50.2 % Diversification and 94.4 + 24.5 % on a constant scope audiovisual rights
16.5 + 13.8 % Digital channels 14.5
151.8 152.2 Advertising revenues + 0.2 %
Q1 2005 Q1 2006 15 Distribution of revenues by segment
Discontinuing Discontinuing activities activities Free-to-air 13.3% Digital 15.2% 50.2% Free-to-air channels 43.3% Digital 4.6% channels 4.7%
Diversification Diversification and and audiovisual audiovisual rights right s 29.9% 38. 8% Q1 2005 Q1 2006
The beginning of 2006 highlights : the dynamism of existing activities (digital channels, audiovisual rights) and the strong growth of new activities in diversification (M6 Mobile by Orange, Distance Selling) 16 Advertising market (January – April 2006) : + 4.5 %
After an uncertain start of year, the advertising market has registered good performances in March and April
Gross expenditures % change Jan – Apr 2006 Jan – Apr 2006/2005
921.4 M€ +5.3%
367.1 M€ +4.8%
38.6 M€ +4%
409.8 M€ +2.6%
Source : TNS Media Intelligence 17 Sectors : M6 performance in line on Food & Health – Beauty, underperforms on Household products
Changes in expenditures and market shares (Jan – April 2006 vs Jan – April 2005)
111-1---FoodFood 222-2---HealthHealth & Beauty 777-7---HouseholdHousehold products 412.8 M € invested on allallallTVTVTV 228.2 M € invested on allallallTVTVTV 83.9 M € invested on allallallTVTVTV TTV
-4.7% -5.5% -10.6% -10.8%
Change in expenditures Jan – April 06 vs Jan - April 05 -18%
-31.9%
Change in market shares 0 pt -0.3 pt Jan – April 06 vs Jan - April 05 -4.6 pts
Market share Jan –April 2006 MS 20.7% MS 26.6% MS 22.1%
Source : Micromarché – TNS Media Intelligence gross data – Jan to April 2006 vs Jan – April 2005 18 Sectors : M6 outperforms on Telco, Beverages and in line on Services
Changes in expenditures and market shares (Jan – April 2006 vs Jan – April 2005)
333-3---TelcoTelco 101010-10 ---BeveragesBeverages 666-6---ServicesServices 185.3 M € invested on allallallTVTVTV 41.1 M € invested on allallallTVTVTV 157.3 M € invested on allallallTVTVTV TTV +103.6%
+83.1% +43.0% +33.1% +32.9% Change in expenditures Jan – April 06 vs +22.8% Jan - April 05
+3.3 pts +3.6 pt +0 pt Change in market shares Jan – April 06 vs Jan - April 05
Market share Jan –April 2006 MS 32.1% MS 25.3% MS 17.3%
Source : Micromarché – TNS Media Intelligence gross data – Jan to April 2006 vs Jan – April 2005 19 Overview
2005 Reminder
Q1 2006 Audiences
Q1 2006 Revenues
DTT
New growth drivers
Conclusion
20 An effective strategy from 7 pm to midnight…
Breakdown of advertising expenditure Breakdown of M6 programme by time slots expenditure by time slots (TTV 2005 data)
45.5 % 50.4 % 18.7% 13.3 % 9.1 % 10.0 % 7.3% 5.9 %
12 midnight 12 noon 2pm 5pm 7 pm to 8:30 pm 6:30 pm 8:30 pm to 12 noon to 2: pm to 5pm to 7pm 8:30 pm to 12 midnight to 8:30 pm to 12 midnight
64.2% of advertising 60.4% of M6 programme expenditure are concentrated expenditure are concentrated on Access, Prime Time and on Access, Prime Time and the 2 ndndnd half of the evening the 2 ndndnd half of the evening
21 … enabling M6 to offer the best opposition in this time slot
M6 offers the best opposition to the DTT offer among all the major French TV terrestrial networks in prime time and audience share gains in the 2 nd half of the night
---3 %3 % + 3 %
---7 %7 % ---9 %9 %
---10 % ---22% Prime Time ---16 % 222ndndnd half of the evening ---27% M6 posts the 3 rd best prime time audience level M6 posts the 2 nd best 2 nd half of night audience level for individuals 4+ y.o. equipped with DTT for individuals 4+ y.o. equipped with DTT 31.7 31.3
16.8 16.0 14.1 13.3 12.7 9.69.69.6 6.66.66.6 5.95.95.9 2.82.82.8 4.24.24.2 2.52.52.5 1.91.91.9 1.81.81.81.01.01.0 2.02.02.01.21.21.2
Individuals 4+ y.o. audience share equipped with DTT / Monday to Sunday, January 2006 Source: Médiamét rie, subscribed channels uniquely surveyed 22 Audience shares on +4 y-o equipped with free DTT
Relevant performance of W9 with an audience share of 3.1% on +4 y-o equipped with free DTT (vs 2.7% in January 2006)
W9 is one of the few channels in progress.
6,1
January 2006 January - March 2006 4,3 4,1 Audience share - +4 ans y-o equipped with free DTT Average score from mondays to sundays – 03h / 27h – In % 3,13,2 3,1 2,7
-1.8 +0.4 -0.1 1,4 1,2 1,2 0,7 0,5 0,5 +0.2
Period: 1st quarter 2006 Source : Médiamétrie 23 Cumulated audience on +4 y-o equipped with free DTT
W9 is the most attractive and popular channel among the new DTT channels.
40,0%
38,1% 38,0% 37,3% 37,4% 37,1% January 2006 January—March 2006 34,5%
32,4% 31,3%
28,2% 27,8% 27,4%
25,7%
Period: 1st quarter 2006 Source : Médiamétrie / Equipped households – threshold 1 second 24 Overview
2005 Reminder
Q1 2006 Audiences
Q1 2006 Revenues
DTT
New growth drivers
Conclusion
25 Diversification and audiovisual rights : an increased contribution to sales and EBIT
FY 2004 FY 2005 % change Q1 2006
Revenues 352.2 380.3 + 8.0 % + 50.2 %
+ 24.5% on a constant scope EBITA 9.8 25.6 > 300%
EBITA margin 2.8 % 6.7 %
EBIT : 38.1 M € (13.3 M € gain on RTL Shop disposal) Except M6 Interactions, the contribution of all activities increased M6 Mobile and Mistergooddeal.com first contribution is positive
26 HSS – Mistergooddeal: a fast-growing Distance Selling player
Turnover ( €M) Strong growth in the e-commerce market 585858 Average number of Average number of Average number of 32.6 Incl. MGD : online buyers in 2005 online buyers in 2005 online buyers in 2006 €M 23.3 Q3 Q4 Q1
+ 77.9 % 15.1 million + 6.4 % on a constant scope 13.4 million 12 million +31% vs.Q1 +26% vs.Q4 2005 Q1 2005 Q1 2006 2004
Turnover up 77.9 % (+6.4% on constant consolidation scope basis) HSS revenues +6.7% Pursuit of infomercials growth Mistergooddeal.com in sustain growth (+56% vs +37% for the market) e-commerce growth driver Creation of multi-channel player with a critical mass
27 M6 Web revenues more than doubled
Turnover ( €M) Turnover up 102.9% 13.6
Growth driven by: 6.76.76.7 • the success of the Group’s websites + 102.9 % and interactivity business
• M6 Mobile by Orange dynamism Q1 2005 Q1 2006
M6 Mobile by Orange
1 million subscribers’ goal within 3 years 400 000 subscribers expected in June 2006 Launch of a new offer coming soon
28 Overview
2005 Reminder
Q1 2006 Audiences
Q1 2006 Revenues
DTT
New growth drivers
Conclusion
29 Audience trust M6 because of its difference
Innovation Channels’ perception by general public
Relaxation, Knowledge, Show sobriety
Tradition Source: Ipsos qualitative survey December 2005 30 Conclusion
Innovation + Power
M6 Free to Air Digital Channels Diversification
Content Control Enlarging the offer Capitalising on a strong brand Launch of new channels Sport M6 Mobile Presence in all strategic Series/Drama M6 Web fields (DTT, DSL, VoD, Audiovisual rights Mobile TV, Cabsat)
31