U.S. Markets closed

Edited Transcript of MMT.PA earnings conference call or presentation 30-Jul-19 4:30pm GMT

Half Year 2019 Metropole Television SA Earnings Call

Neuilly-sur-Seine Paris Aug 5, 2019 (Thomson StreetEvents) -- Edited Transcript of Metropole Television SA earnings conference call or presentation Tuesday, July 30, 2019 at 4:30:00pm GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Jérôme Lefébure

Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board

* Nicolás Bellet de Tavernost Abel

Métropole Télévision S.A. - Chairman of the Executive Board & CEO

================================================================================

Conference Call Participants

================================================================================

* Annick Tonie Maas

Exane BNP Paribas, Research Division - Analyst

* Christopher Johnen

HSBC, Research Division - Analyst

* Conor O'Shea

Kepler Cheuvreux, Research Division - Head of Media Sector

* Remi Grisard

Societe Generale Cross Asset Research - Equity Analyst

* Thomas Coudry

Bryan Garnier & Co Ltd, Research Division - Financial Analyst

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Welcome to the M6 First Half 2019 Results Presentation M6 Group. I will now give the floor to Mr. Nicolás de Tavernost, Chairman of the Executive Board. Over to you, sir.

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [2]

--------------------------------------------------------------------------------

Ladies and gentlemen, good afternoon. I'm very happy to present the Métropole Télévision results for H1. Jérôme Lefébure, CEO, will present the detailed financial results for the half year.

As an introduction, I would simply say that in the first half, the group had robust results marked by an increase in most of its financial indicators, which validates the strategy of the group, which was refocused after the acquisition of radio activities in 2017, and which will continue with the acquisition of the Lagardère Group Television activities.

The M6 Group posted revenues of EUR 714.6 million, up 1.6% over 1 year. For the first half, advertising revenues grew by 2.3% to which each media in the group contributed linear and nonlinear TV, video and Internet with EUR 539.3 million. Advertising turnover reached its highest level.

EBITA was EUR 148.3 million, plus 0.8%, with an operating margin higher than 20%. Over the first -- over the last 10 years, the operating margin for H1 was always higher than 15%. So with 20.7% for this half year. Net income was EUR 88.4 million, with an increase of 11% over 1 year. Net earnings in 2018 included the loss of Girondins de Bordeaux for close to EUR 12 million. As Jérôme Lefébure will say later, net cash was EUR 39.4 million for debt -- net debt of EUR 115.4 million at 30 June 2018.

If you look at revenues for the group, they grew by 11.4% -- EUR 11.4 million. Every activity contributed, television, radio, Production & Audiovisual Rights and diversification. If you re-scope for the scope effect related to the deconsolidation in July 2018 of monAlbumPhoto, revenues from diversifications grew by EUR 3.1 million. EBITA grew by EUR 1.2 million, and this offset, in particular, the investment in the technological aspects around the 6play platform that we'll tell you about later.

When it comes to ratings for 2019, M6 is still the second biggest channel for the commercial target. Free-to-air channels had stable ratings. These 3 free-to-air channels, 21.1% for the commercial target of women responsible for purchases under 50, despite major sporting competitions for the half year.

If you look at the long period, group M6 had stable ratings between the first half of 2009 and 2018 with ratings around 21%. And the legacy channel, M6, now talking about the M6 channel, it resisted the fragmentation of the market the best, especially for the commercial target. Over 11 years, its audience share only grew -- only lost a few percent when -- by 21% when our main competitors lost 30%. In prime time, in the evening, M6 channel had robust performance, thanks to its powerful brands with 11% audience share of the target and 17% for the commercial target.

And if you look at the main brands and franchises in group like Farmer Wants A Wife, that had its best season; Capital, Married at First Sight, Top Chef, the main franchises of the M6 Group had extremely robust performance for the first half.

Over the season, if you look at access prime time between 7:45 and 9, M6 was the leading channel for the commercial target. During that strategic period of 7:45 to 9 with 18.7% on average for the commercial target with 2 main programs, one for the news, the news program, (inaudible), that works very well and the other one is the 8:20 p.m. show with 22% for Scènes de Ménages, a record season, EUR 4 million every night and 22% for the commercial target.

If you look at DTT, with the 2 DTT channels. For the commercial target, performance for the DTT channels was very satisfactory. W9 and 6ter both grew for the commercial target, and they both stood their results as some of the best DTT channels for that target. And W9 was the second leading DTT channel for the commercial target for the whole day, with 4% audience share, plus 0.1 percentage points over 1 year and 6ter increased its performance by 0.2 percentage points at 2.8% for the first half, thanks to its diverse offering for the whole family.

So that was a very good season, that is looming for Puissance TNT. Puissance TNT, let me remind you, has synchronized screens between W9 and 6ter. So Puissance TNT is the third major DTT channel with 6.8% for women responsible for purchases, far above and -- in France of its main competitors, and it grew year-on-year.

We also carried on investing in content. Programming costs for all 3 free-to-air channels were EUR 227.5 million, plus 1.3% of the period. This included the 2 gains for the French National football team that were broadcast on the M6 channel since we have a contract to share the rights for the French Football team with TF1.

So 6play, great success with 639 million videos viewed and plus 12% over 1 year, EUR 639 million -- and 639 million videos viewed over the half year. So 12% growth, that's very satisfactory performance. And it includes all the programs of the group, including also original programming on the platform.

Now the radio activities. Radio activities have a 4.4 percentage points lead over the main private challenger, which is good performance when it comes to the 3 stations with 18.6% of audience share, plus 4.4 point lead over the main challenger. With the RTL station, we are now #1, again, before France Inter in terms of audience share, which is the only main criteria that determines the performance for a station.

Although, in terms of cumulative ratings, we are #2, still behind France Inter. Regarding Fun Radio and RTL2, they're also good on the commercial target with respectively 6.3% for Fun and 4.7% for RTL2. So quite satisfactory performance indeed, which resulted into good figures with radio activities that are very well positioned.

If you look at the details for advertising revenues of group, they reached their historic high with EUR 539.3 million, plus 2.3% as I said earlier, splits into EUR 420.5 million, plus 0.7% for free-to-air channels; M6, W9 and 6ter and plus 8.6% at EUR 118.8 million for other activities, including radio, the theme channels and also digital.

Now coming to turnover for the television segment, so both the theme channels and the 3 free-to-air channels, revenues grew by 1.4% at close to EUR 419 million for this year. When it comes to radio, as I said earlier, very good performance for ratings and activity, revenues grew by 5.8% at EUR 82.3 million for the half year, allowing for an EBITA of EUR 12 million, up 15%. So we are right on our business plan, our strategic plan that we have for our radio activities.

Coming to production. Here also a very good half year, EUR 40.1 million for production with good seasonality in movies, in particular, because we had the tail end of the Astérix release and also movies like Tanguy, After and Facteur Cheval which performed very well. EBITA for the Production & Audiovisual Rights group was EUR 11.4 million, up close to 60% from 1 half year to the next.

Regarding diversification, in the first half, revenues reached EUR 102.5 million, down EUR 8.1 million. But let me remind you that we deconsolidated monAlbumPhoto that was sold last year, which accounted for a bit more than EUR 11 million in revenue. So if you restate for that item, diversifications would be up by EUR 3.1 million.

Ventadis had more difficult business with home shopping suffering in France, offset partially by the entry into the scope of HSS Belgium, which is now 100% consolidated and an improvement in the activity of Best of TV in the first half. M6 digital services that brings together total, so its revenues grow, thanks to the momentum of the cash back activity by iGraal and in the display advertising market, which is very competitive. The advertising business also grew, thanks, in particular, to the momentum of Passeport Santé, which is now the #2 player in health and wellness with close to 10 million visitors every month, up 55% over 1 year. For cooking, CuisineAZ, with close to EUR 7.2 million, grew by 25% over 1 year.

That's for the main figures of the segment. I will now hand over to Jérôme Lefébure to give you details about the consolidated accounts for the half year.

--------------------------------------------------------------------------------

Jérôme Lefébure, Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board [3]

--------------------------------------------------------------------------------

Thank you, Nicolás. Good evening. Regarding the income statement, a few comments. Regarding a change in current operating profit, as you could see in the presentation, all segments grew, excluding the television segment through which we invested in the first half in the digital platform called 6play, as Nicolás de Tavernost said earlier. Eventually, we could post EUR 148.3 million EBITA versus EUR 147.1 million last year.

Regarding the bottom line, in particular, the change in accounting principles, let me insist, for the eligibility of the figures that's here. In the first half of 2019, we're applying the IFRS 16 standard regarding leasing commitments, leasing liabilities, and also IFRS 23, which had an impact on the reclassification of assets and liabilities, in particular, on the balance sheets of the group.

So regarding the other comments, I'm still on the income statement in operating proceeds and charges linked to re-groupings. You can see a charge here and that's an accounting effect related to the acquisition of film catalogs in the last few years. And in these acquisitions, we had included in the assets a support mechanism from CNC and as soon as they are cashed in, it was for the case in the first half of 2019, that improved the funding position of the group, but the offset is that they had to be amortized all at one go and hence, a one-off charge of EUR 5.1 million additional versus last year.

The financial results is a charge of EUR 2.6 million -- EUR 1.7 million because of an investment, EUR 2.8 million because an investment in radio that we made 3 years ago, which was depreciated during the half year for EUR 1.6 million, that's the income of the impact on the group income. The rest of the financial results were stable, both in terms of cost and funding, for debt, and also the proceeds from the cash investments because cash improved this year.

Last, but not least, in IFRS 5, you can see a significant impact, which led to a marked improvement in the net income for the period because as Nicolás de Tavernost said last year, 30th of June, 2018, Girondins de Bordeaux were consolidated in the consolidated accounting according to IFRS 5, held-for-sale activities and the net loss was close to EUR 12 million versus this year. And results for that segment, which was very slightly negative, the very last effect of the price adjustment for minus EUR 0.3 million.

Overall, the group posted a net income of EUR 88.4 million versus EUR 79.5 million last year, a clear improvement of 11%. So good performance for the half year.

Regarding the balance sheet, very few comments, stability for all segments, excluding the impact of IFRS 16, which led to an increase in nonrecurring assets for around EUR 40 million, and the rest is the amortization of various asset lines, so portfolios of Audiovisual Rights or tangible fixed assets. You have the impact of IFRS 16 in the nonrecurring liabilities with simply an increase because of the application of IFRS 16. So on the balance sheet, as for every H1 of each fiscal year, we have of course slightly deteriorating cash and also slightly deteriorating equity because the dividend paid out in May 2019 of the year. For the previous year, it is higher than the income for the half year that we have every year.

So in the cash flow statement, also a half year that was quite different from the previous one because of the improvement of the self-financing capability and improvement in the WCR variation. WCR in H1 is always a cash consumption for the group and in terms of taxes here, a situation that is a bit more nominal in 2019 because let me remind you that in June 2018, in the first half, we had the reimbursement of the dividend tax that improved the situation.

The cash situation related to tax by a bit more than EUR 2 million in the half year. So an improvement in cash flows from operating activities by EUR 11.4 million. Add to that also an improvement in investment activities regarding cash because this year, we had a recurring investment flow, which is mostly explained by audiovisual activities, especially television.

And let me remind you too that in 2018, we had 2 uncommon items, the finalization of the Astérix movie, that consumes quite a bit of cash in the first half. And also the latest technical investment in the installation of radio in the year, which was booked in H1 18. Regarding funding activities, here you can see the increase in the dividend paid out in 2019 for 2018. So EUR 1 per share or EUR 125 million versus EUR 0.95 in 2018 for the FY '17, so EUR 79.6 million. The significant item in H1 2019 is based on the fact that we didn't draw on credit lines since our cash situation was positive at the beginning of H1. So that we could phase the funding of our business, but also the payments of the dividends, which happens in May.

Thus, in the -- over the period, the overall improvement in cash without use of funding was the use of EUR 56.1 million versus EUR 33.7 million last year since the group improved its cash situation over the first -- second half of 2018, now we have positive cash and growing. At the end of that first period of 2019 was EUR 76.8 million versus EUR 20.4 million last year.

I will throw it back to Nicolás now.

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [4]

--------------------------------------------------------------------------------

Thank you. Several thanks. The loss you see in the accounts of radio is a loss that is related to media for equity investment, taken before the -- we took control of that activity in 2017. This has led to depreciation, EUR 26 million. Several elements and to conclude this presentation, first, we should finalize the acquisition with transfer of activities on September 2 for all Lagardère channels after we get the authorization from the competition authority and the French CSA. The operation, the transfer will be in effect September 2, the integration into the M6 Group. We have the funding lines for the payment of the EUR 250 million for the acquisition.

In parallel, SALTO is waiting for the DSC's final decision before the end of August. Regarding the technical platform, the contract was given to M6 web, the tests are ongoing and are giving satisfactory results. Therefore, we will be ready and operational to develop SALTO's activity in 2020.

As for the advertising market, in the second half of the year, it is quite modest over the summer, but it should be okay in the fall, that is what we can see today Regarding the next season 2019, 2020, on our antennas, we should have the exclusivity of the French Football team and half of the matches for the -- men's matches and we are waiting for an answer to the common offer between TF1 and M6, Euro 2020 next year. Those are the elements we could give you today. Our objective remains in the long term to have an operating margin higher than 20%, which we had in the first half. The second half traditionally is different. The margin is slightly lower because of the summer months. We would like to increase by investments in Lagardère. We would like to improve the group's operating margin, both by developing investments and reducing costs by paying attention, notably to the fixed cost of programming.

Ladies and gentlemen, that was the presentation for a sound first half of the year. Jérôme and I are available for questions.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) First question from Annick Maas from Exane BNP Paribas.

--------------------------------------------------------------------------------

Annick Tonie Maas, Exane BNP Paribas, Research Division - Analyst [2]

--------------------------------------------------------------------------------

Regarding the programming grid and the cost of it, can you tell us whether you see an acceleration of the grid in half -- in the second half of the year? Regarding the investment in 6play in the first half of the year, are those investments now completed or are you expecting more investment in the second half of the year? Thirdly, could you just indicate what you're expecting in terms of production for the second half of the year?

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [3]

--------------------------------------------------------------------------------

As for the first half of the year, we should have 2 matches -- 3 matches, 3 games for men, and we have several matches for women. But there will be no mark to acceleration of programming cost for the different antennas. For 6play, can you repeat the question, the rise in technological investments, no. We would like to continue those investments to improve 6play's performance, where by the way shrinking of several ways of doing those -- the technological investments. We are preparing the SALTO platform that will be operational next year. 6play has been able to have the contract for SALTO and operate it as of next year.

Regarding the Production & Audiovisual Rights in the second half of the year, we should have slightly slower lineup. Regarding SND and the production of movies, we will have a movie produced with Nicolas Vanier that is called Give Me Wings, and we have a movie with Adam Seiner several movies, but the lineup will be slightly less powerful in the second half of the year.

--------------------------------------------------------------------------------

Operator [4]

--------------------------------------------------------------------------------

We have another question from Kepler Cheuvreux, Conor O'Shea.

--------------------------------------------------------------------------------

Conor O'Shea, Kepler Cheuvreux, Research Division - Head of Media Sector [5]

--------------------------------------------------------------------------------

I have also 3 questions. First, regarding radio. How do you explain the increase in revenue in the second quarter? And regarding the first half, there is an increase of sales of about EUR 5 million increase in revenue, but only EUR 2 million, I thought that you always in synergies regarding RTL -- any problems with investments that have weighed on operating income? Second question, maybe I missed something in Jérôme's explanation, but the consolidation under the equity method compare to you have a loss of EUR 2 million regarding a benefit of EUR 3 million. Can you explain what's behind that?

Thirdly, could we have an idea of the likely contribution of Lagardère's integrated TV activity? In the fourth quarter, what will be the contribution of that integration?

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [6]

--------------------------------------------------------------------------------

Regarding the first 2 questions, I would like to ask Jérôme to answer. Regarding radio, well, the performance of radio, well, the good performance, I would say, that is equal to -- we have to compare it with some -- compare that with some competitors. We have good positioning of radio that's doing slightly better than the radio advertising market. That has done quite well in the second quarter. Regarding the contribution of TV, regarding the integration of Lagardère, well, the contribution should be between EUR 12 million and EUR 13 million for the totality of the period between September 2 and the end of the year. It is a period of a strong contribution, especially for youth. Regarding the question for Jérôme.

--------------------------------------------------------------------------------

Jérôme Lefébure, Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board [7]

--------------------------------------------------------------------------------

Regarding the question -- your question, it is not a consolidation where the equity method is just an asset we had. It is a participation of less than 2% in the capital of an international Internet structure for which radio had done media campaigns paid in the form of participation. So it is a depreciation of all of that asset for the amount indicated in the financial income.

Second part of your question, just to repeat it to make sure I understood it. I don't see what you're referring to when you said a figure of EUR 3 million.

--------------------------------------------------------------------------------

Conor O'Shea, Kepler Cheuvreux, Research Division - Head of Media Sector [8]

--------------------------------------------------------------------------------

Well, I'm referring you have EUR 3 million of positive contribution of -- in the equity method, you have…

--------------------------------------------------------------------------------

Jérôme Lefébure, Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board [9]

--------------------------------------------------------------------------------

All of our other activities which we have less than 1/3 of participation. And notably, beyond the fact that all of our activities are positive, all of our investments in fintech, or in media or in contents. Notably, we had a participation also in the area of e-learning for which we have had good potential results, allowing us to improve by EUR 1.1 million. That's about half of the EUR 3 million.

--------------------------------------------------------------------------------

Operator [10]

--------------------------------------------------------------------------------

We now have another question by Remi Grisard from Societe Generale.

--------------------------------------------------------------------------------

Remi Grisard, Societe Generale Cross Asset Research - Equity Analyst [11]

--------------------------------------------------------------------------------

A question about the SALTO project. What are going to be the changes to be made after the restrictions imposed by the competition authority? Should we expect higher programming costs in particular? And then a question regarding the advertising market, you explained in the press release that the market was fairly erratic based on the months, December was bad, the back-to-school period will be better? Could you explain the drivers why are there positive months and negative months that was also seen in TV consumption with June, that was positive when the other ones were rather negative?

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [12]

--------------------------------------------------------------------------------

About SALTO, we had discussion with the competition authority which tested out -- which then required a number of commitments on a certain number of items. The first one is nonexclusivity for our channels and services to the benefit of SALTO. That was provided for because we won't give any exclusive rights to SALTO or anyone. We have commercial conditions for the availability of our signals on the various platforms and these commercial conditions are applied both to SALTO and other platforms. It's simply that we have provided for some conditions regarding -- well, conditions that won't allow the 3 competitors: TF1, France Télévisions, and M6 to be aware of the confidential contracts that we have with other distributors as those number of conditions were set and procedures are in place. That's for distribution.

Regarding the second type of measures that we have discussed with the competition authority are regarding rights. Regarding rights, we have 2 things. First, to put it simply, we need to have separate contracts for SVoD and linear contracts with so-called linear contracts. So we need to make a number of precautions. Especially when it comes to French programs, that's not an excessive burden because there are certain amount we can carry on buying rights. Those for SVoD and linear, which is important for us. And simply, these rights will need to have 2 contracts for the acquisition of these rights.

And last, but not least, when we give exclusive rights to SALTO for preview, in particular, for our own programs, we are limited in terms of number of the exclusives so that we don't close the market to SVoD. These are the types of conditions that seemed acceptable to us, although they are quite stringent in order to get SALTO off the ground, and now we're awaiting the competition authority's decision about this.

For advertising, I can confirm that the summer months that are traditionally relatively weak won't be good months, July and August, and September is looking -- well, there's lot of demand for September. What would rather, it happens this way than the other one than the opposite, how to interpret that? I have to explain this. Well, in some periods, advertising is relatively focused and concentrated on periods of high demand. So increasingly at the time when the consumers are there, well, at the time around Black Friday, when our major consumer operations, then there's a lot of demand which helps us higher -- for a significant price effect. And so we need to think about this. But for more traditionally, weak operations, then there is an acceleration in weakness. So a concentration in the market, which is not overly embarrassing, except that there's a glut on our screens. But we can improve our pricing because of the increasing demand. That's the summary we can give now about the advertising supply. More questions? No. Okay. Thank you.

--------------------------------------------------------------------------------

Operator [13]

--------------------------------------------------------------------------------

We have no further questions in French. We're now going to move on to questions in English. We have a question from Chris Johnen, HSBC.

--------------------------------------------------------------------------------

Christopher Johnen, HSBC, Research Division - Analyst [14]

--------------------------------------------------------------------------------

First coming back to SALTO and the use of the 6play platform. Can you just elaborate a bit on how you guys will be compensated for that? Will that be a onetime payment, rather recurring fee? How does that look like? And also how does that work with respect to the use of the platform within our RTL Groups channels? That's the first question.

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [15]

--------------------------------------------------------------------------------

Well, the SALTO contract provides for simple conditions. We have fixed remuneration and also variable remuneration, depending on the type or the number of items of consumption on the platform. It's a contract that was negotiated long distance in order to amortize the operating costs of the SALTO platform. And by the way, we are very happy to have been chosen by SALTO because it was after an international call for tenders that was put by a major firm and which examined and audited compliance and the development of technological platforms and the possibilities offered by the modeling of the platforms. And after this competition, we were selected by our partners. And so it's a great encouragement. Ideal to what we're already doing as a white-label provider for Belgium, Croatia and Hungary and Luxembourg. And we are going to work probably also with the Netherlands.

--------------------------------------------------------------------------------

Christopher Johnen, HSBC, Research Division - Analyst [16]

--------------------------------------------------------------------------------

And is there any sort of way to quantify the scope of that -- of those payments for you? I mean what kind of figures are we talking about?

--------------------------------------------------------------------------------

Operator [17]

--------------------------------------------------------------------------------

More questions?

--------------------------------------------------------------------------------

Christopher Johnen, HSBC, Research Division - Analyst [18]

--------------------------------------------------------------------------------

Can you guys hear me? Are you taking the follow-up. You want to try again? Can you hear me guys? Operator, could they hear me?

--------------------------------------------------------------------------------

Operator [19]

--------------------------------------------------------------------------------

Sir, Chris Johnen, can you please repeat your question, please?

--------------------------------------------------------------------------------

Christopher Johnen, HSBC, Research Division - Analyst [20]

--------------------------------------------------------------------------------

Yes, please. Just a follow-up on the 6play answer. Is it possible for you to quantify the impact of those payments maybe on, let's say, with respect to 2020, what kind of range are we talking about? Do you expect it to be material or rather insignificant just so that we get some sort of idea on how significant that may be or not?

--------------------------------------------------------------------------------

Jérôme Lefébure, Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board [21]

--------------------------------------------------------------------------------

Well, it's going to depend on the success or not of SALTO and the volume of consumption related to it. And so well, that way we will be able to amortize a number of fixed costs related to the platform. The aim for us is to mutualize development costs, let me remind you that Netflix spends close to EUR 1 billion -- over EUR 1 billion in technological costs. And so M6 needs to spend EUR 14 million. Our aim is to mutualize costs related to the distribution, OTT distribution on the various platforms. We took the initiative of injecting a lot of technology, so our aim is to have a lot of customers or a lot of partners for this business so that we can amortize fixed costs, and so that we can carry on developing with customization, or even ultra customization of our programs via the 6play platform or via SALTO because let me remind you that the 6play platform will continue with its activities in parallel with SALTO. That's what we can say.

Now regarding exact amounts, it will depend on investments, on the CapEx for SALTO and the business generated by SALTO.

--------------------------------------------------------------------------------

Christopher Johnen, HSBC, Research Division - Analyst [22]

--------------------------------------------------------------------------------

Okay. That's clear. Can I -- I'll do the last 2 questions together, you said viewing on 6play was up 12% in the first half. Can we get an idea on how the advertising performance did or revenues overall to just so we get an idea on how pricing developed for the volumes.

And then you gave some comments on Ventadis. Is there any possibility that you can quantify or at least give a range of the scope of decline both in revenue and EBITA for that business? And whether anything has changed with respect to the strategic or nonstrategic nature of that business?

--------------------------------------------------------------------------------

Jérôme Lefébure, Métropole Télévision S.A. - CFO, Head of Finance, Director of Finance & Administration and Member of the Executive Board [23]

--------------------------------------------------------------------------------

Well, for the 6play platform, we had ratings of 639 million videos viewed for the half year, plus 12% for the period. Well, from one half year to the next over 1 year. Well, we do not disclose advertising platform by platform, but regarding the advertising increase on the platform, it's double-digit, and it's relatively significant. For home shopping, yes, indeed, the home shopping was a bit more difficult, let me remind you that in home shopping, we've 2 segments. First home shopping proper, which is HSS on our channels, which is represented by HSS, Home Shopping Services and M6, M6 Boutique. And we also have a number of other channels that we operate like C8 and the other business, which is Best of TV. And Best of TV, as you know, is the availability of items from Home Shopping in department stores. So for this home shopping activity, I don't have the exact figure, but roughly speaking, business broke even between the 2 HSS and Best of TV over the half year. So it's a quite significant decline in EBITA for home shopping. So we have corrective measures in place that are already paying off for the first -- second period of the year.

--------------------------------------------------------------------------------

Operator [24]

--------------------------------------------------------------------------------

We have no further question in English for the moment. So I can go back -- we can go back to the French questions right now. So we have a question, Thomas Coudry from Bryan Garnier.

--------------------------------------------------------------------------------

Thomas Coudry, Bryan Garnier & Co Ltd, Research Division - Financial Analyst [25]

--------------------------------------------------------------------------------

A few questions. Can you confirm that the use of IFRS 16 has no EBITA impact. And if so how could you quantify it? Can you tell us also the contribution of monAlbumPhoto deconsolidation to EBITA? And finally, third question, I wanted to go back to additional investments you have made in data and 6play platform. I want to understand well should we also include additional investment on addressed advertising on TV? Are those expenditures that are going to improve top line in the half year or are those expenditures going to lead to incremental revenue in future quarters?

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [26]

--------------------------------------------------------------------------------

Jérôme is going to tell you about IFRS 16 and the result on the net income and operating income. I'll take the other question. Regarding the EBITA impact of IFRS, it is slightly positive, it's plus 0.6 that is the impact, immaterial. But for the balance sheet, the net income, it's 0.1 since in financial income, we have an impact on our leasing business. So plus 0.1 on net income. And on the balance sheet, we have a generation of assets in light of the carry EUR 49.1 million, both on the assets and liability side. You will find all this in the appendix to consolidated accounts.

Regarding monAlbumPhoto, last year, in terms of revenue, the contribution was EUR 11.3 million in diversification and contribution was equivalent to 0 for the first half because, given the structure of customers, it is mainly at the end of the year that the results of the base effect was more on the second half of the year. Regarding 6play platform, it is an OTT platform. It's not an advertising technology platform. It's a modular platform, distributing program in AVoD or RVoD, replay or live. It doesn't have an effect on addressed advertising or targeted advertising will have progressive effects on the improvement of 6play and the search for more customers for future OTT developments.

--------------------------------------------------------------------------------

Operator [27]

--------------------------------------------------------------------------------

So we have no more questions for the time being. Ladies and gentlemen, I would like to thank you. We will see you for the annual accounts in next February 2020.

--------------------------------------------------------------------------------

Nicolás Bellet de Tavernost Abel, Métropole Télévision S.A. - Chairman of the Executive Board & CEO [28]

--------------------------------------------------------------------------------

We can just conclude that this half year has been a sound and a solid one, confirming the stability of commercial audiences for free-to-air channels and good performance of radio and other digital activities and the market is still uncertain regarding advertising, but we will see what happens in the fall after the summer. So I would like to wish you all a good summer break. Thank you.

--------------------------------------------------------------------------------

Operator [29]

--------------------------------------------------------------------------------

Ladies and gentlemen, the web conference is now over. Thanks for taking a part in this event, please disconnect.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]