(AOF) – M6 published a net profit of 237.1 million euros, up 42.9% for its 2023 financial year. The audiovisual group also generated a current operating profit of 300.7 million euros over the period, down 10.6% year-on-year, resulting in an operating margin of 22.9%. Its turnover of 1.32 billion euros was down 3%. Advertising turnover is down 1.5% compared to 2022, mainly due to the decline in TV advertising turnover which reached 905 million euros, down 2.2%.
The turnover of the Production & Audiovisual Rights activity is up by 11.4 million euros compared to 2022, amounting to 67.6 million euros, driven by “the dynamism of the cinema and transfers of rights”, according to a press release from the media group.
Net cash increased by 61.6 million euros and amounted to 343.6 million euros, compared to 282 million euros, as of December 31, 2022.
The performance achieved in 2023 leads to a proposal to the General Meeting of a dividend of 1.25 euros, corresponding to a payout of 67%, equal to the average of the last 5 dividends paid, specifies this same press release.
In terms of prospects, M6, “while continuing to strengthen linear television, will accelerate the development of its streaming activity by launching a new platform to support its ambition”.
This ambition is based on additional investments which will be made between 2024 and 2028 and which will focus on content, distribution, technology and marketing. Up to 100 million euros will be invested by the group with the objective of doubling the group’s streaming turnover as well as the number of hours viewed on the platform by 2028.
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Key points
– Second French television group with 22.3% audience share and first private radio group with 18.4% audience share;
– Turnover of €1.36 billion derived 80% from advertising, 16% from radio (RTL, Fun Radio brands) then production and audiovisual rights and diversification (Internet sites and real estate agencies);
– Business model aimed at complementarity and transversality of activities across the entire value chain via content production, diversification of offers (TV channels -M6, W9, 6ter, Téva, Gulli, Paris Première- and radios – RTL, RTL2 and Fun Radio) and digitalization;
– Capital held 48.26% by RTL Group, Nicolas de Tavernost chairing the management board of 5 members and Elmar Heggen the supervisory board of 9 members;
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Unlevered balance sheet with equity of €1.2 billion and a net financial surplus of €192 million as of June 30.
Challenges
– Strategy to gain market share in TV and radio and prepare for the future through targeted participations in non-consolidated assets -Streaming with Bedrock, digital marketing with GSG;
– Innovation and digital transformation strategy defined in the OPEN program: monitoring, “Campus innovation” training, Lab Innov for internal experimentation;
– Environmental strategy to respond to 2 issues – reduction of environmental impact and public awareness:
– 1st carbon footprint across the entire value chain,
– circular economy, digital sobriety and strict electricity management;
– Rotation of the diversification portfolio: sale of the digital division to Prisma Media and structuring of TV & cinema production and audiovisual rights distribution activities.
Challenges
– Impact of the entry of new players;
– Apple TV, Netflix, Amazon Prime, Google TV and, in 2023, HBO Max: increase in the price of programs and gains in advertising market share;
– Concern about the decline in radio and TV advertising revenue, affected both by the economic situation and by the drop in individual listening time;
– Outcome of negotiations for the sale of the digital division to Prisma Media;
– After a decline of 6.4% in turnover and 16.2% in operating profit, expectations of a 2
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semester more favorable to advertising.
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