(-6.29% for 13.12 euros)
The audio-visual group title recorded a decline after the publication of the competition authority’s report on the proposed merger with TF1. The regulator considers that “the process raises significant competition problems, particularly in the advertising market,” as the M6 and TF1 explained in a press release.
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the main points
– the second French television group with an audience share of 14.3% and the first private radio group with an 18.2% share;
– turnover of 1.39 billion euros, 81% of which comes from advertising, the rest from radio (RTL, Fun Radio brands) and digital services (Cuisine AZ, Turbo sites);
– a business model that aims to integrate and showcase activities throughout the value chain through content production, diversification of offerings (TV channels – M6, W9, 6ter, Téva, Gulli, Paris Première – and radios – RTL, RTL2 and Radio Fun), digitization and acquisition;
– the capital holds 48.26% of the RTL Group and 5.05% of the CNP, Nicolas de Tavernost leads the board of directors, and Elmar Heigen the nine-member supervisory board;
Very good balance sheet with equity of €1.2 billion, cash of €323 million and net debt of approx.
– A strategy to gain market share in TV and Radio and prepare for the future with targeted holdings in unconsolidated assets – live broadcasting with Bedrock and digital marketing with GSG and Salto;
– Innovation and digital transformation strategy defined in the OPEN program: Monitoring, “Innovation on Campus” training, Lab Innov for internal experiments;
– Environmental response strategy to two challenges – environmental impact reduction and public awareness:
– Ongoing construction of the group’s low-carbon plan,
– circular economy, digital sobriety and strict electricity management;
– Simplify the portfolio and refocus on M6 Digital Services, M6 Créations, M6 Interactions and Best of TV;
Continuing gains in viewers, particularly in the 25-49 age group (22.8% audience share) and early evening.
– a highly organized sector with limits to redistribution and offshore growth, uncertainties associated with the emergence of video-on-demand, connected TV and the entry of new operators – Apple TV, Netflix, Amazon Prime, Google TV and, in 2023, HBO Max;
– Matchmaking between TV activities and TF1 activities expected for 2023:
– Expected disposals of the Hertzian channels, in particular 6ter and Paris Première,
– predict the month of October for the opinion of the Autorité de la concurrence;
– after the acquisition of France Télévisions’ stake in the audio-visual subscription platform Salto, held with TF1, the broadcasting project succeeded;
– 2022 challenges after a decent first quarter: support for the restoration of advertisements, development of split television, non-linear-6 play and Salto- shows, production of novels and promotion of internal synergies;
2021 dividend of 1 euro.
French players are well positioned in audiovisual production
Among the independent players, France’s Banigay is the global leader with a projected turnover of €3 billion in 2022 in a market representing $100 billion in revenue. Mediawan (supported by the KKR Fund), with a turnover of 1 billion euros, is another major French player in this sector. The market remains highly fragmented because according to the European Audiovisual Observatory, the twenty largest production groups were responsible for only 38% of titles created in 2020. However, experts believe that the sector has entered a consolidation phase. Hence, the listing of Banijay Exchange on the exchange is aimed at enabling it to better participate in this movement.