Metropole Television M6 : H1 2017 revenues and earnings

At its meeting held on 25 July 2017, the Supervisory Board reviewed the 2017 half-year financial statements approved by the Executive Board.

30- Jun- 17

30- Jun- 16

30- Jun- 15

% change 17/16

% change 17/15

(€millions) 1

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Over the first half of the 2017 financial year, M6 Group recorded consolidated revenue of €662.4 million, an increase of 2.6% in comparison with the first half of 2016, driven by the growth in advertising revenues (up 4.2%).

After a first half of 2016 notable for both the broadcast of Euro 2016 and the receipt of contractual compensation linked to the gradual termination of the M6 mobile by Orange contract, the Group generated €118.7 million in profit from recurring operations (EBITA) over the first six months of 2017.

EBITA was therefore up €25.3 million in comparison with EBITA for the first six months of 2016 restated for the non- recurring operating income of €42.6 million corresponding to the net impact of the M6 mobile compensation. This growth in Television activities reflects solid advertising performances and a reduction in the cost of programmes.

The tax charge totalled €48.7 million, down €4.2 million year-on-year. Net profit was €69.1 million, representing a net margin of 10.4%.

1 The information provided is intended to highlight the breakdown of consolidated revenue between advertising and non-advertising revenue. Group advertising revenue includes the advertising revenue of free-to-air channels M6, W9 and 6ter, the share of advertising revenue from pay channels and the share of advertising revenue generated by diversification activities (mainly Internet).

Profit from recurring operations, or EBITA, is defined as operating profit (EBIT) before operating income and expenses from business combinations and capital gains on the disposal of financial assets and subsidiaries.

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In accordance with IFRS 8, the contribution of the Group's three operating segments to consolidated revenue and EBITA was as follows:

Within an environment characterised by continuing fragmentation and an eventful political scene, which does not favour viewing of its main channel, M6 Group's family of free-to-air channels achieved a stable year-to-year average audience share of 13.8% in the 4+ years old category (source - Médiamétrie), and of 21.8% for the commercial target of women under 50 responsible for purchases (up 0.1 pp in relation to the first half of 2016):

• The M6 channel retained its second placed ranking amongst the under 50s throughout the entire day, thanks in particular to the relevance of its range of programmes in strategic slots, and was marked by:

  • The effectiveness of its access primetime viewing schedule (Les Reines du Shopping, Chasseurs d'appart, Le 19'45 and Scènes de ménages) which allowed it to confirm its position as leader in the 6pm- 9pm weekday slot on the commercial target (source - Médiamétrie);

  • The strength of its event programming in the evening (L'amour est dans le pré, A l'état sauvage, Top Chef, Le meilleur pâtissier, etc.) which enabled it to close the gap on its main rival on the commercial target (source - Médiamétrie, 9pm - 10.30pm time slot). Within this slot, M6's audience share now stands at 64% of TF1's;

• W9 maintained its ranking as one of the top three DTT channels on the commercial target (WRPLes Marseillais South America and Moundir & les apprentis aventuriers) and the relevance of its evening programming (films, documentaries, magazines);

• 6ter remained the top new generation DTT channel on the commercial target, with a 2.5% audience share, a year- on-year increase of 0.3 points over the six months.

Within an advertising market whose visibility remains uncertain, M6 Group managed to monetise its strong audience figures and saw the advertising revenues from its free-to-air channels rise by 3.8% (up €15 million), including by 2.2% over the 2ndquarter, despite a challenging comparison base since the 2ndquarter of 2016 was notable for the broadcast of Euro 2016.

In the first half of 2017, revenue from Production and Audiovisual Rights operations totalled €52.3 million, down 5.6% year on year, due to a less busy cinema release schedule (8 films released in cinemas by SND, vs. 11 films in the first half of 2016), and marked by the success of La La Land (2.7 million admissions), Lion (1.8 million) and A bras ouverts (1.0 million).

The first half-year was also notable for the release of 4 films financed by M6 Films (including Sahara, Rock 'n Roll, and

Gangsterdam) recording a combined 3.8 million cinema admissions.

EBITA was €3.7 million, compared with €5.0 million for the first half of 2016.

During the first half of 2017, Diversification revenue totalled €162.2 million (up 1.2%), with a contribution to EBITA of €17.1 million, representing operating profitability of 10.6%. Over the course of the half-year,

• Ventadis continued to restructure its home shopping activity;

• M6 Web excluding M6 mobile integrated iGraal, a cashback company acquired in November 2016, and recorded strong growth in its advertising revenues from online video. The platform 6play now has more than 17 million registered users, with an audience that remains strong and almost 4 million videos viewed per day across all screens (11% growth year-on-year, source - Médiamétrie, January to June);

• F.C.G.B ended the French League 1 Championship in 6thplace (compared with 11thin the 2015/2016 season).

Unallocated expenses fell €5.7 million, having increased in 2016 as a result of the impact of the M6 mobile compensation on the Group's employee saving scheme.

The Group had shareholders' equity of €575.8 million at 30 June 2017. The net cash position was positive and stood at

€63.6 million against €176.4 million at 31 December 2016, thereby reflecting the payment in May 2017 of a dividend of

€107.5 million for the 2016 financial year.

On 19 July 2017, the Conseil Supérieur de l'Audiovisuel renewed the M6 channel's licence to broadcast, which will come into force on 1 January 2018.

M6 Group expects a stable TV advertising market over 2017.

Neuilly sur Seine, 25 July 2017

A conference call will be held on 25 July 2017 at 6.30pm (CEST). A webcast will be broadcast on the site www.groupem6.fr (Finance section).

Details on how to access the conference call are available at the same address. Both the slideshow presentation and the consolidated half-year financial statements will be accessible online from 6.00 pm, it being specified that the Statutory Auditors have completed a limited review of the financial statements and issued an unqualified report.

Next release: Third quarter financial information on 7 November 2017 after close of trading M6 Métropole Télévision is listed on Euronext Paris, Compartment A.

Ticker: MMT, ISIN Code: FR0000053225