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(Microsoft Powerpoint 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'affairesProgramming Coût de grille AutresOther charges operating EBITAEBITA EBITEBIT RésultatNet Profit net Grouppart 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 17 th Monday, April 24 th 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 Source: Téléreport/Médiamétrie janv-apr 2006 vs janv-apr 2001 All TVs All 36.2 47.5 16 +1.4 EnlargementM6’s of audience -2.2 +0.4 28.1 50.4 21.4 jan-apr 2006 and point evolution (jan-apr 2006 vs jan-a 4-24 4-24 y-o +5.5 -1.1 -4.3 Evolutionchannels’ of profile audience 38.1 16 46 +1.5 +0.7 +2.4 -3.4 25-49 y-o 25-49 29.3 62.1 8.5 -3.6 -1.6 pr 2001) >50 y-o >50 +4.4 26.6 12.3 61.2 +1.8 -1.5 -1.0 40.6 45 15 -3.4 -5.8 +10.7 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 % + 3 % 7%---7 % 7% 9%---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.
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