2007 Annual report - Groupe M6

MANAGEMENT REPORT
3.
Financial structure and cash flow
statement
3.1
Financial structure
At 31 December 2007, total assets were € 1,581.3 million, down € 24.7 million
compared to 31 December 2006.
Non-current assets totalled € 678.9 million, an increase of € 101.9 million taking account
in particular of the acquisition of a building in Neuilly-sur-Seine (net impact of € 38.2 million),
investments in Summit Entertainment LLC and Annonces Jaunes (€ 25.8 million) and the
€ 18.9 million fair value revaluation movement of Canal + France shares.
Current assets, excluding cash and cash equivalents, amounted to € 813.3 million,
an increase of € 35.0 million (up 4.5%) compared to 31 December 2006. € 61 million of
this movement was due to the rise in advances paid for the purchase of programmes and
to broadcasting right inventories following the recognition to the balance sheet of a portion
of audiovisual right purchase commitments entered into by the Group’s TV networks over
the past few years, in order to step up their programming. Conversely, improved average
collection of trade receivables resulted in a reduction in current assets of about € 20
million.
Cash and cash equivalents amounted to € 89.1 million, a € 161.5 million decline
compared to 31 December 2006. This change, as explained in the cash flow statement,
was due to the repayment on 4 January 2007 of the advance of € 52.5 million received in
2006 from Vivendi as part of the merger of TPS and Canal + Group pay TV operations. This
advance had been treated as a financial liability at 31 December 2006.
Cash and cash equivalents net of financial debt, which is measured by adding
cash, cash equivalents, current and non-current financial assets (loans and deposits) and
deducting current and non-current financial debts and leases, declined by € 108.7 million,
to a positive € 89.0 million at 31 December 2007, compared to € 197.7 million at the end
of 2006.
Current and non-current assets decreased by € 13.0 million to € 793.3 million. The
decline was primarily due to the refund of the € 52.5 million advance received from Vivendi.
Operating liabilities increased by a total € 23.5 million, in line with the growth of Group
operations. In application of IAS 32, Financial instruments: disclosures and presentation, a
€ 15.9 million financial liability was recognised in respect of financial instruments hedging
free share allocation plans.
M6 GROUP - 2007 annual report
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