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Annual Report 2005 1 2 Message from the Chairman of the Management Board 4 Corporate governance r 5 Group structure and management i a 5 Key dates o t 6 Shareholders’ notebook e e r 8 2005 Key figures F 10 2005 Highlights 6 M Contents 12 Audiences 14 The advertising year 16 M6, a responsible Group 24 s M6 Free to Air l e 26 Message from the Head of Programming n n 28 Internal productions a h c 30 Information l a t 32 Lifestyle magazines i g i 33 Docu-reality D 34 Entertainment-Youth 36 Drama 40 Sport 42 Digital channels n o i t 44 Complementary TV offer a c i f 48 Paris Première i s r 50 W9 e v 52 Téva i D 53 M6 Music Hits, M6 Music Black, M6 Music Rock 53 Fun TV 54 TF6 54 Série Club S P 56 Diversification T 58 Publications, Discs and Events 60 M6 Éditions 62 Multimedia/Internet and Interactivity 64 Cinema and rights 66 Distance selling t 68 Football Club des Girondins de Bordeaux r o p e R 70 TPS l a i c n a n i 72 Financial Report F 75 Management Report 123 Financial accounts 203 Legal information Annual Report 2005 Financial Report TPS Diversification Digital channels M6 Free to air 2 OF THE MANAGEMENT BOARD MESSAGE FROM THE CHAIRMAN in apositiontoseize new opportunities A group Group financialperformancesestablishednewrecordlevels:turnoverincreasedby6.4%to development projectforthecomingyears. In 2005,theGrouphadopportunityofboth provingtheefficiencyofitsprofitablegrowthmodelandasserting its ( tivity relationship with viewers, subscribers, net surfers andcustomers. tivity relationship with viewers,subscribers,netsurfers whileatthesametimestrengthening theinterac- sing oncapitalisingtheM6brand, Group’sskillsandknow-how, byfocu- was toacceleratethedevelopment ofoperations,productdistributionandcontentbroadcastingchannels, objectiveofthestrategyimplemented adynamicyear2005. The M6 Groupdiversificationoperations experienced tion authorities,istogivenewand betterprospectstothepayTVmarket. objectiveofthisagreement,subjecttoapprovalbycompeti- agreement forthecombinationoftwoentities.The mediums, aswelltheemergenceofnewparticipants,andrecognised thenecessityofjoiningforcesbysigningan asthemultiplicationofdistributionplatformsandaccess developments inthepayTVeconomicenvironment,such As regardsTPS,2005wasadecisiveturningpoint.TPSandCanal+ Groupshareholderstookintoconsideration television. to-air coreassetfortheGroup,thankstoinvestmentsmadeand totheincreasedpenetrationofdigitalterrestrial W9,willprogressivelybecome a secondfree- channel, revenues (up11.7%).Inaddition,M6Group’sfree-to-airDTT Série Clubagainregisteredgrowthin2005,both intermsofaudiencelevelsandrevenues,notablyadvertising Group’s position.T inordertosecurethe Groupwasabletoanticipatethese developmentsbycreatingoracquiringnewchannels, The offerings. marks theendofmonopolypayTVonmulti-channel latter The tiplication ofdistributionmediums.CableTVandsatellitearedevelopinginparalleltoDSL andDTT. andthemul- withincreasingnumbersofhouseholdsgettingaccesstoanevergrowingnumberchannels changes, byprofound strategyofcontentenhancementisbeingimplementedwithinanaudiovisualenvironmentaffected The Cup2006 matches. World sport toitsaudience,astestifiedbytheacquisitionofrights31Football M6 ismovingtowardawider stable market. torical recordforthenetworksinceitscreation.M6succeededinincreasingadvertisingrevenuesby4.0%a 23.2%, thehis- hosted158newbrandsin2005.Grossadvertisingmarketsharereached channel advertisers. The High audienceratingsandtherelevanceofnetworkpositioninghaveattractedoveranincreasingnumber rage audienceshareof19.1%thatsignificantlygrewcomparedto2004. 2ndmostpopularTVnetworkforhousewivesunder50yearsold,with anave- and confirmeditsstatusasFrance’s 2005 wasmarkedbygreataudiencesuccesses.M6progressedinallcategories(4+year-oldindividuals) Û 1,079.9 million excluding TPS)whilenetprofitgrewby21.3%to millionexcluding 1,079.9 hematic c , more familyorientedprogrammingandoff hannels, such as Paris Première, Téva, M6 Music Hits/Black/Rock, Fun TV, TF6 and Téva, M6MusicHits/Black/Rock, Première, TV, asParis Fun hannels, such Û 156.2 million. ers morenews,F rench dramaandmore rench Annual Report 2005 Û 1,274.7 million 1,274.7 Annual Report 2005 ficant growthmarginsandleversatitsdisposal. theGroupisnowinaposition toseizenewopportunitiesandvalorisethesigni- titive developments.Morethanever, tising markettodistributionin2007, facingtheGroup anditscompetitorsinthecomingyears,includingopeningupofadver- numerous challenges last butnotleast,thetotalinvolvementofGroup’steams.T management culture,thatleadsustotakecalculatedrisks;theunwavering supportofawidershareholderbase;and donotimmediatelycomeacrossinthefiguresofthisannualreport,butthatIwouldliketohighlight here:our which in itsenvironmentandtoestablishthebasisforstrong,profitablelastinggrowththanksthreeofstrengths, Groupwasprimarilyabletoanticipate changes audiovisualenvironment.The rapidlychanging profits, inanextremely 2005 wasagoodyearfortheGroup,both intermsofresultsandsuccessfulinvestmentsthatwillgeneratefuture Clubisnowequippedtofulfilitssportsambitions. The bility. ClubGirondinsdeBordeauxbore fruits,enablingthereturntofinancialprofita- made in2004relationtoFootball strategy of“fullrights”acquisitionfilms,therebyguaranteeingthecontrolcontentanddistribution.Finally focused onstrengtheningthedevelopmentprospectsofInteractionbusiness,notablywithacquisition Nicolas deTavernost Citato tegy builtarounditsbrand,bycombiningapowerfulc reflectedtherelevanceofGroup’sstra- As forallotherdiversificationoperations,thegrowthrecordedbyM6Web wing e-commerceindustry. present onallpowerfulbroadcastinganddistributionmediums,isideallypositionedtobenefitfromthefast-gro- isanoriginalcombinationoftelevision and internet, branch multi-channel e-commercewebsite.This leading French GroupcreatedaHomeShoppingbusinesswithcriticalsize,followingtheacquisitionofMistergooddeal.com, a The profitability. topositionitselfonapromisingmarketandbuildnewsourceofgrowth the Grouptogetintoanewindustry, 227, ched undertheformofahighlysuccessfulpartnership.Subscribernumbersrea- the Groupinmobilephoneindustry, orintegratedin2005.M6MobilebyOrangemarksthefirststepsof newgrowthdriverswerelaunched Therefore, newspaper andthelaunc 000 at 31 December 2005, which was double the initial forecast. This developmentisanopportunityfor wasdoubletheinitialforecast.This 000 at31December2005,which h of the the development of new broadcasting mediums and technological andcompe- thedevelopmentofnewbroadcastingmediumsandtechnological Auto Turbo magazine. Intermsofaudiovisualrights,theGrouppursuedits hannel with proximity and interactivity. Inaddition,theGroup andinteractivity. hannel withproximity hese threestrengthsshouldenableustotakeupthe , efforts Financial Report TPS Diversification Digital channels M6 Free to air 3 4 CORPORATE Executive Committee r i a o Nicolas de Tavernost t e e GOVERNANCE r Thomas Valentin F 6 Éric d’Hotelans M Catherine Lenoble Jean d’Arthuys s l Philippe Bony e n n Deputy Head of Programming a h c l Gilles Boyer a t i g Director of Institutional Relations i D Delphine Cazaux Director of Organisation and Human Resources Nicolas Coppermann Deputy Head of Programming n o i t a Jérôme Dillard c i f i Director of Diversification operations s r e v i Michelle Garrigues-Fredet D Director of Information Systems Management Board Jean Golvan Director of Research and Marketing Nicolas Thomas Catherine Éric Jean Jérôme Lefébure S P de Tavernost Valentin Lenoble d’Hotelans d’Arthuys T Director of Finance and Administration Chairman Deputy-Chairman Head of Deputy-Chairman Head of Nathalie-Camille Martin Head of Advertising Head of Digital Director of Legal Affairs Programming Administration TV Operations Émilie Pietrini t Director of Communication r o p Supervisory Board Régis Ravanas e R l Deputy Head of Programming a i Bernard Arnault Guy de Panafieu c Albert Frère n Michel Rey a Vincent de Dorlodot Remy Sautter n Chairman i F Axel Ganz Yves-Thibault de Silguy Deputy Head of Administration and Secretary General Gérard Worms Constantin Lange Ignace Van Meenen Marc Roussel Deputy-Chairman Jean Laurent Gerhard Zeiler Director of Logistics and Technical Resources Annual Report 2005 5 GROUP STRUCTURE M6 Group history: key dates r • 1987 - Métropole Télévision is granted the authorisation i a th o to exploit France’s 6 analogue TV channel on 1 March. t st e At 11:15 am, M6 broadcasts its 1 image. e AND MANAGEMENT r F 6 st M6 Free To Air ADVERTISING M6 Publicité Catherine Lenoble • 1989 - 1 local news station at Bordeaux, broadcast M at 8:54 pm. The 1st of a long series of local news station PRODUCTION C. Productions Frédéric Mercier openings at Grenoble, Lille, Lyon, Marseille, Montpellier, Métropole Production Nicolas Coppermann Nancy, Nantes, Nice, Rennes and Toulouse. W9 Productions Alexis de Gemini s l • 1992 - Creation of M6 Interactions, which commerciali- e Studio 89 Productions Florence Duhayot n ses derived products. M6 concludes its 1st profitable year n a h M6 Films Philippe Bony of operation. c l a t i g Digital M6 Thématique Jean d’Arthuys • 1994 i - M6 shares are launched on the Second Marché D Channels Paris Première Jean d’Arthuys of the Paris Stock Exchange. Téva (51%) Catherine Comte • 1996 - M6 sets up its Internet site: www.m6.fr W9 Pierre Robert TPS, television by satellite, is launched. n M6 Music Hits/Black/Rock o Nicolas Gicquel i t • 1999 - M6 takes over the Football Club des Girondins a c Fun TV i Pierre Robert f de Bordeaux, with 66% of the capital (increased to 100% i s r TF6 (50%) Frédéric de Vincelles / Fabrice Bailly in 2002) e v i Série Club (50%)