2007 Annual report - Groupe M6

MANAGEMENT REPORT
The Group had the following debts at 31 December 2007:
- the portion of debts towards other shareholders in jointly owned companies;
- a lease implemented by a subsidiary to finance facilities.
14.2.3
Share risk
To the extent that the Group does not own any listed financial asset, share risk exposure
only relates to treasury shares.
In consolidated financial statements, treasury shares are recorded at their acquisition cost
as a reduction of equity. Therefore, M6 Group share price movements have no impact on
the Group’s consolidated financial statements.
In the parent company financial statements, the net value of treasury shares is aligned with
the corresponding asset at the listed share price, except for treasury shares held with a
view to funding free share allocation plans, the net value of which is written down to zero
over a two-year period.
The overall net position of the treasury share portfolio is € 3.8 million and 208,059 shares
at 31 December 2007. A 10% movement in the M6 share price would have a € 0.4 million
impact on the value of treasury shares.
14.2.4
Liquidity risk
M6 Group is not exposed to any liquidity risk, in light of its net financial position and since
it does not use credit derivatives.
14.3
14.3.1
Legal risks
Regulatory risks
M6 operates a private terrestrial TV network, whose signals are broadcast unscrambled
and free of charge throughout continental France. It is primarily financed by advertising
revenues.
M6 was authorised on 1 March 1987, on the basis of Article 30 of the Law 86-1067 of
30 September 1986 subsequently modified, pursuant to the freedom of communication.
It has also broadcast since March 2005 in an integrated and similar manner free-to-air in
digital mode pursuant to paragraph 111 of Article 30-1 of the Law.
M6 was initially awarded a 10-year broadcasting licence on 1 March 1987. M6’s licence
was renewed pursuant to the provisions of paragraph 1 of Article 28-1 of the abovementioned
Law of 30 September 1986, for two successive 5-year terms, from 1 March
1997 and 1 January 2002, respectively.
M6 GROUP - 2007 annual report
107