M6

A SOLID BUSINESS MODEL TO TAKE ON THE FUTURE
In addition to the ongoing regulatory and technological changes taking place in the audiovisual sector, and the growing strength of the DTT channels, 2009 saw a decline in the economic environment, leading in main to a decrease in advertising sales for all media groups. Faced with this difficult economic backdrop, the M6 Group achieved solid results and maintained its sales and net profit, due to the ability of its TV activities to stand up to marketplace pressure and the increasing strength of its diversification activities.

For the second consecutive year the M6 channel achieved the best results among the leading channels maintaining its share of the TV audience among the public at large, and indeed saw its evening audience ratings go up (best audience ratings for 80 evenings in 2009, compared to 59 in 2008), this being due to the Group’s ability to take advantage of its strong brands and, for another year yet again, its ability to innovate. The digital channels cemented the successes achieved to date; they each have an identity of their own and for this reason are popular among the general public. Téva and Paris Première strengthened their position vis-à-vis their respective audiences (upper class and under 50s housewives/with children) and W9 cemented its position as the leading DTT channel, with, to its credit, 69 out of the top 100 audience ratings on DTT in 2009.

Despite the difficult financial context, the good results achieved by our family of channels enabled the Group to win over further market shares and outperform competitors where advertising is concerned. Diversification activities now account for half of the Group’s sales and have once again proven to be strong growth drivers: the Ventadis (distance selling), interactivity (M6 Web) and audiovisual rights divisions achieved stronger results in 2009; the M6 Interactions division (licences and merchandise), albeit operating in a difficult market, succeeded in stabilising its activity and the Girondins de Bordeaux Football Club shone out by winning the French league title and the League Cup, thus building on the progress already made.

These good results came about through the involvement and motivation of all the Group’s teams. They also prove that the M6 Group has a sound and effective strategic model, based on two pillars: the M6 channel and diversification. Albeit television remains our core business, it is in fact the diversification activities, which are less dependent on advertising which have enabled the Group to stand up to the financial crisis and offset the loss in advertising revenues in 2009. The growth of these activities which are peripheral to the television activities and which have been consubstantial to the development of the Group since its early stages is in large part due to the innovation of our employees, who need to show imagination, creativeness and talent. These are all values that shine through our channels : in an industry which is becoming ever more competitive, fragmented and indeed unstable with the launch of new channels, the ability to be bold, creative and imaginative has become key to winning over audiences.
Our aim is to continue innovating with M6 and W9, as well as with the new compensatory channel that will be launched at the end of 2011. This model for generating revenues is balanced, effective and profitable and has not come about by chance or by developing the Group in any old random way. Programme launches, in-house productions and external acquisitions have punctuated the Group’s history and are part and parcel of the Group’s business model. We have always endeavoured to take maximum advantage of the innovative potential of our brands on the M6 channel by developing merchandise and entering into partnerships with outside players and by ensuring that our brands have maximum presence across all broadcast media.
M6 was the forerunner to the 360 media model, which others are now calling for, and has successfully implemented it. This model is strengthened only further with the increase in broadcast media and the pioneering action of the M6 Group in the field of new technologies.

It therefore by virtue of the TV and diversification activities having shared values that the overall strategy is naturally consistent and the synergies work. These activities feed off each other and have formed a virtuous circle, making it possible to take advantage of strong brands and powerful assets.
Finally, it is because of the talented people both on screen and in the teams, the new stars we are constantly recruiting, and the on-going training and attention our staff receive that the M6 Group is able to complement its effective development model with a certain essence that sets it apart.
The 2009 results therefore serve to motivate us to continue our efforts in what is still a fragile and uncertain economic environment. We have the tools we need to face up to this context and ensure that our business model prevails over time. The M6 Group has been one of the few media groups in Europe to stand up to the financial crisis; our aim in 2010 is to safely navigate these testing times and once again improve our competitive performance.

© Arnaud Baumann/M6

Nicolas de Tavernost

Chairman of the Management Board