M6 - METROPOLE TELEVISION: 3rd Quarter of 2013: Consolidated Revenues of € 293.3 m (up 3.7%)

Regulatory News:

¹ The financial information provides a breakdown of advertising and non-advertising revenues. Group advertising revenues include M6, W9 and 6ter (FTA channels) advertising revenues, the share of advertising revenues of pay digital channels and the share of advertising revenues generated by diversification activities (mainly Internet).

Having demonstrated its resilience during the first half of the year in a weakened economic environment, the M6 Group (Paris:MMT) recorded an increase in consolidated revenues over the third quarter (up 3.7%), in an economic climate that remained unfavourable.

The M6 channel’s advertising revenues returned to growth (up 2.5%), whilst other advertising revenues increased by 10.4%. Non-advertising revenues posted growth of 3.1%.

For the year to the end of September 2013, the M6 Group achieved revenues of € 991.5 million (down 0.2%), with advertising revenues of € 579.1 million (up 0.1%), and non-advertising revenues of € 412.4 million (down 0.7%).

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M6 TV Network

Over the third quarter as a whole, M6 achieved an average audience share of 10.9%, an increase compared to the 10.5% reported in the first half of the year (4+ year olds, source: Médiamétrie), and 17.1% across the commercial target (vs. 15.8%).

M6 succeeded in increasing its audiences thanks to the ratings achieved by its strong brands (L’Amour est dans le pré, Capital, 100% Mag, etc.) and the success of its new programmes launched in September (La meilleure boulangerie de France, Les Nannies etc.).

Against a backdrop of a continuing decline in advertising investment in television, M6 managed to gain market share and posted an increase in its revenues (up 2.5%) in the third quarter. Whilst demand from advertisers proved to be slightly stronger than during the first part of the year, advertising market visibility remained limited.

Digital Channels

During the third quarter of 2013, revenues from the Group’s digital channels grew 7.6%, driven by W9 and 6ter.

W9 confirmed its position as the leading DTT channel on the commercial target, with a 4.0% audience share over the third quarter (source: Médiamétrie) thanks to its original programming. W9 also strengthened its position as the leading DTT channel across the audience as a whole during the strategic 5pm-12am time slot.

In addition, 6ter confirmed its status as the leading HD DTT channel in the under 50 year-old housewives segment, with a 0.9% audience share over the third quarter (source: Médiamétrie).

Diversification and Audiovisual Rights

Revenues from Diversification and Audiovisual Rights reached € 120.7 million over the third quarter of 2013, an increase of 3.8%:

• Revenues from Audiovisual Rights operations grew 36.7%, primarily due to their successful summer releases (Now you see me and Red 2);
• Revenues from the Interactions Division increased by 4.5% thanks to the success of the albums released this summer (Génération Goldman 2, Tropical Family, etc.);
• M6 Web revenues fell by 11.8%, notably as a result of the continued decline in revenues from mobile games and entertainment operations, and pricing pressure on the mobile phone market, despite the number of M6 Mobile customers reaching 2.8 million at the end of September;
• Ventadis operations were stable (sales up € 0.3 million);
• F.C.G.B posted a € 1.3 million increase in revenues, mainly as a result of its participation in the Europa League.

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Change in the financial position and outlook

For the year to 30 September 2013, consolidated EBITA² totalled € 153.9 million (down 3.9%), up 3.9% excluding investments in the 6ter channel and costs induced by the new taxes introduced in 2013.

Group equity totalled € 551.6 million at 30 September 2013 (against € 659.3 million at 30 September 2012) with a net cash position of € 217.8 million.

In a TV advertising market that is in decline, the Group remains cautious as to how revenues will trend and will maintain its investments in programming.

² The profit from recurring operations, also called EBITA, is defined as operating profit (EBIT) before amortisation and impairment of intangible assets related to acquisitions (excluding audiovisual rights) and capital gains on the disposal of financial assets and subsidiaries.