Welcome to the First Half twenty twenty one Results Presentation for the JN6 Group. I will now hand over to its CEO, Mr. Nicolas de Taverno. Thank you. Good evening, 1 and all.
We are now going to present the H1 2021 results with Jerome Lefebvre, who will speak more to the accounts. The first half of twenty twenty one was marked by a strong increase in results. M6 Group posted consolidated revenues of €645,000,000 over the period, that's 15.7% over a year. Advertising revenues grew by 32.1 percent over a year, coming closer to their pre crisis levels. After a more difficult beginning of the year in January February, let me remind you that last year, January February didn't have the impact of the health crisis.
However, advertising revenues had a favorable base effect from mid March onwards beginning with the first lockdown in 20 20 and the gradual recovery in consumer spending in after the Q1. Consolidated EBITDA reaches €165,000,000 plus €80,700,000 over the period, mostly reflecting the increase in advertising revenues. This result includes the accounting of exceptional public subsidies for €16,900,000 for the half year. Excluding one offs, group EBITDA for N6 is at the level of H1 2019, €148,100,000 versus 100 and €48,300,000 so it's exactly equivalent. Operating margin was 23%, excluding subsidy versus 15.1% in H1 'twenty and 20.7% in H1 'nineteen.
This improvement reflects the relevance of the strategically focusing on our core business in TV and radio and the group's flexibility in management of its programming process. Despite the extra cost that the Euro 2020 aired in 2021 for 9 out of 12 matches. Net income for the period was €119,300,000 Let me remind you that it was €161,200,000 in H1 'twenty, but we accounted we booked a capital gain of nearly €120,000,000 for the contribution and disposal of Algarve to GSG, Global 7 Group and the IPO of Bedrock. Excluding one offs, you can see that net income grew very strongly. Group revenues grew by €87,600,000 driven by the increase in TV and radio advertising revenues.
Revenues for diversification declined because of the closure of movie theaters for 4.5 months versus 3 months in H120. Restated for scope effects, revenues from diversifications grew by €4,200,000 plus 11.3 percent EBITDA grew by €80,700,000 in connection with advertising performance and the decline in costs. And also thanks despite the strong increase in spot costs for the euro, which was mostly aired in June. Individual gearing times in up to June stood at 3 points, 3 hours 46,000,000 minutes minus 10 minutes, but plus 16 minutes compared to H1 'twenty. So TV held up well.
The open share of the channels of the Am6 Group were 14.7% plus 0.2 points for the total audience. For women responsible for purchases, it was 23.1%, so plus 0.6%. It was the best during results for the group illustrating the good choices made in terms of editorial strategy around unifying family programs throughout the day. For the whole day, the M6 channel is still the number 2 for the commercial target with a viewing share of 15.1 percent to 10 plus 1 percentage point. M6 Group also became the 3rd biggest channel in France for viewers over 4 with a viewership share of 9.4%, plus 0.5 percentage points.
It was very good in terms of ratings. In prime time, we had the best first half on women responsible purchases with a fewer share of 18.9 percent plus 2.2 points, we were able to bolster our big entertainment groups like Pop Chef, married at first sight or speaking express. And also other successes like LEGO Masters, atromoiteme or Pelle at le moire. And we also had big events with the Euro 2020 in June July this year. The channel broke out 8 matches in June with France Germany with €15,200,000 an access point in time, €5.32 to €9,000,000 The euro share for women responsible for purchases grew by 1.1 points with Monacolais Francois Masson, L'Eure Boulangerie de France with 2,300,000 euros on average, with 21% share for women responsible for purchases.
The net evening news are a very big success, biggest ratings for 7 years. And Saint de Minaj is the most watched drama by the whole viewership and women responsible for purchases. For Priscilla and Pw9 and Cicer, performance was satisfactory in spite of the growth of legacy channels. W9 had a good first half and was stable. Sitter and Geely were slightly down.
W9 strengthened its position as 1 to 2 channel for women under 50 for the whole day. In access primetime, all reality TV had a great season with many successes for drama like Escape, a 2 part TV movie with 12.8 percent viewer share on women for responsible for purchases With various programs for the whole family, 6th year was the biggest new generation VTT channel created after 2012 for women under 50 with great viewer ratings, thanks to its drama. It really is the biggest channel for the under 10s. And viewership grew by 13.2 percent, 13.2 percent plus 1.5 points on that target. So, Pay 2 Pay TV channels, particularly from here, you confirmed its latest as the most watched KTV channel with 4,000,000 viewers.
And Teva is also the leader on its main demographic 6 play on AVOD. It's still growing with the exclusive programming. So 6 play confirmed its attractiveness in April 2021 with 20,000,000 registered active users versus 17,200,000. Last but not least, for radio, for the first half, the radio division with RTL was still the leading private radio group with a listeners share of 18.1% for listeners over 13%, so a 4.5 point lead over the second. And it's remarkable because we have fewer stations than the biggest competitor.
And Radio France has a much larger budget than the radio stations in our group. RTL is the biggest private radio station and Littner's share of 12.3%, the gross debt is the most disciplined to show, especially the podcast and 13,000,000 listens and downloads. RTL 2 had 3% listeners share, plus Nielsen 2 points, and it's a leader on young adults. Fun radio had a listeners share of 2.9%, and it ranks 2 for the morning show. Now coming to advertising.
As I said in my introduction, advertising revenues for radio, TV and digital grew by 32.1% over a year coming back to free prices levels marked after the health crisis. The basic was favorable, thanks to the power of our TV and radio. This was very effective for advertisers and also because of the Euro 2020 on M6. Advertising revenues grew by for TV grew by 84.1% versus Q2 'twenty, overperforming advertising market with a clear lead of 7.5% over the level of Q2 twenty nineteen. So TVM's momentum is very strong and very good for Q2, and we'll say more to the outlook for H2.
For the whole H1, the performance for the TV division was plus 34%. Out of the biggest sectors, food, retail, telcos, rebounded strongly whereas personal care, automotive and transport, tourism and catering were impacted by health restriction on their business. Other operations grew by 21.4% over the year in 18/21, be it radio and digital. Programming costs for PV reached €237,100,000 versus €192,800,000 in H120 and €241,900,000 in H1 'nineteen. That didn't include any expenditures for used TV that was acquired in H2 'nineteen.
With optimized investment in programs, we have invested in our programs in the Euro and other programs that were aired in Q2 whilst controlling programming costs because overall N6 was able to absorb the extra cost of the euro on its programming cost, it was more than offset in H1. Contribution of the TV business was €137,200,000 into consolidated EBITDA versus €56,200,000 in H1 'twenty. It benefited against this backdrop from a €13,400,000 tax credit. Excluding the tax credit, the contribution was in excess of that of 2020. The recurring operating margin for the core business was 24.2%, excluding the tax credit versus 17.1% for H1 'twenty and 23.2% for H1 'nineteen, which was another record in terms of operating margin for the TV business.
Regarding radio, revenues were €73,100,000 up 22 percent over 1 year. EBITDA reached €14,400,000 versus minus €2,200,000 in H1 'twenty, reflecting the increase in revenues and also €3,400,000 in subsidies and audiovisual tax credit and broadcasting support subsidy. The operating margin for radio was 15.1%, excluding public support, as we noted for television. For individual rights and production, revenues were nearly €20,000,000 €19,800,000 down 13.2 percent because of the closure of movie theaters until the 18th May 2021, so 4.5 months versus 3 months in 'twenty. So SMG only had 500,000 admittance sales in 2021 versus 1,600,000 admittance sales for the same period last year.
For this second half, we have the big lineup, especially the release of Camelot. But with the impact of the vaccine passport in movie theaters, Camelot is going to be a success in this year. It would have been a huge success without the vaccine passport on admissions, and it is the only movie that really stands out of all releases right now. In H1 2021, EBITDA for production and individual rights was nearly €12,000,000 €11,900,000 to be accurate versus €14,400,000 in H1 'twenty. And regardless of releases, EBITDA also benefited in 2020 from a very big catalog acquisition for internal consumption of movies that were aired on our channels during lockdown.
Regarding diversification, in H1 'twenty one, revenues were €41,000,000 down by €40,000,000 That's explained by a base effect and the deconsolidation of Aigral for €8,800,000 and the disposal of the home shopping activities €35,600,000 EBITDA from diversifications was €6,100,000 versus 8 point €2,000,000 in H120, of which €3,100,000 for sold activity. So for continuing activity, best of the N6 Interpreations or digital services like cooking or health websites and end sex interactions, revenues were up €4,200,000 plus 11.3 percent and EBITDA grew by €900,000 plus 18.3%. So for me, it was a quite satisfactory half year, especially in terms of the TV business, in terms of firepower for our channels and in terms of expense control and revenue growth because we're almost back to 2019 results with an increase in TV. Regarding the outlook before I hand over to Jerome, I will say more to that after Jerome's presentation of the accounts.
Nicolas, your comments on the overall simplified consolidated statement. You've just had explanation about the half year operating activity. My comments, of course, regard the line other operating proceeds highlighting government support received by the group because of coronavirus in 2020 and which have an accounting impact of €16,900,000 which you'll find in the €25,300,000 which is an attributable amount. The other operating elements in terms of proceed expenses reflect the activity and investments we have faced throughout the half year, notably in programming costs and the cost of content on the line cost, consumption and other operating expenditures, but also staff costs. The headcount is slightly down.
The expenditures are stable, reflecting a variable remuneration related to growing 2021 performance and group saving. Regarding the operating income, the impact related to capital gains on subsidiary sales, 2020 was an exceptional year in terms of capital gains. This year in March 2021, we have owed a small share in our diversifications around the hosting of databases and files and digital activities, therefore, a capital gain of about €3,000,000 Regarding the point, which is probably the most significant in this half year, it is the increase in our share of losses in companies, SALTO and Headrock, related to the significant investments we have continued we are going to continue so that SALTO can install its base of subscriber and Detrok can continue their investments to offer a video streaming, a pan European video streaming solution and not only to French companies. Finally, one word about corporate income tax. This tax shows the drop in the corporate tax rate in France in January 'twenty one, but also the positive effects of tax liquidation in 2020.
As you know, this is done in May. Therefore, it has this year had a positive effect. So in a few words, net profit for the period of €119,300,000 versus €161,000,000 last year, but this €161,000,000 integrated €120,000,000 of capital gains, whereas this year, the profit does reflect the operating performance of our activities throughout this past year. Regarding the simplified condensed balance sheet end of June 2021, not a lot of evolution, especially regarding balance sheet, a slight change in working capital requirement showing the activities in the Q2, mainly liabilities and assets, receivables, payables and also the stock of individual rights because we've continued our investments in as explained by Nicolas de Taverno. The main element of the first half year for the group notably concerns the cash.
The payment of a dividend this year was higher than previous years. Outside of 2020, we have paid close to €190,000,000 in dividends. Without the result of the half year, this has a negative impact of €65,000,000 on equity and limited effect on cash of €56,000,000 that you're benefiting from the good results, the results of the footpath. Regarding the cash flow statement, first, we have growing flows, reflecting the ability to self finance and good operating performance of the first half twenty twenty one in relation to the first half twenty twenty. Regarding cash flow from investment activities, we here have an increase in what we call reflecting mainly acquisition of fixed audiovisual rights justifying most of the increase versus 2020.
But on the nonrecurring element side, the activities have been limited in terms of cash impact to €8,200,000 mainly related to the sale of M6 Hosting I was alluding to earlier. Regarding funding activities, we signed the dividend I was current accounts. Here, we're talking about the contributions made to allow those 2 project companies, Santo and Bedrock, to fund not only their activities, but also their working capital requirements, therefore, an increase in the use of the cash of EUR 14,000,000 this year. Overall, a negative developmental change in cash minus €56,000,000, but a closing balance of €38,400,000 with €141,000,000 in gross terms. Here again, the group is starting the second half of twenty twenty one with a strong balance sheet.
Nicolas? Thank you, Gerald. Regarding the prospects for the second half of the year, on the one hand, we have had the end of the euro with very satisfactory audience shares on the 3 matches we that remained to air, notably the final. Regarding advertising prospects, things look are looking quite good. Nevertheless, a number of uncertainties are related to the health situation in September.
That's why we have to remain kind of cautious for the time being. Advertising is looking good for now, at least in the short term, whatever is predictable. Once again, we are living in an uncertain world, and the evolution of the health situation can have an impact on those prospects one way or the other. That's the first issue. Secondly, the other activities, of course, movies is impacted by the present health crisis despite good movies like Camelot.
We still have a few films to release that are very will be very popular. We hope that vaccination will allow admissions, and we hope that the government will support the promotion of those cinemas, notably partial funding of distribution costs since we have decided to help the movie theaters to maintain our theatrical releases. It's also up to the state to help the sector in those releases. Regarding the project of a module FTF-one, the necessary documents have been drafted. The signing has become final, notably after the positive advice of staff trade union representatives.
But of course, we still need to have the agreement of independent authorities, I. E, mainly the French CSA and the ADLC. So the teams are working to produce all necessary documents and comply with what the authorities will have to judge this work. We think that this will be finished by October 2022 when we expect the final decision for the operation at stake. It is quite cumbersome work on this authorization.
We remain strictly competitors during this interim period until we have a final go ahead of the operation. Thank you. I don't know whether you have any questions on this first half and the prospects for the second half of the year. Thank you. We have the first question by Henrik Man, Pied de Perova.
You have the floor. Good evening. My first question regarding the advertising market in Gen V. You're quite conservative. You seem to be more positive.
What are your prospects? What is your time horizon? Do you think the end of August is okay? 2nd question regarding the programming costs over the year. How can you think about it?
And last question regarding SALTO. Could you tell us the increase in the number of subscribers at this stage? Thank you for those questions. Regarding, 1st, advertising forecast, they're slightly different for radio and television, by the way, for the digital. Regarding TV first, TV remains positive over the summer for the Ampex Group.
In July, we have had 3 euro matches that were quite good. And for August also, We have no sufficient visibility about the month of September. October through December have been very good last year. We were up vis a vis 2019. So depending on the health situation and the passport, we will see how our customers behave.
That being said, today, there is a desire to invest in television, and we hope that the health crisis will not derail that evolution. That's why we've been conservative in the figures indicated. But to this day and once again, given the health crisis, we are relatively optimistic on the second half of the year. Regarding programming costs, they will increase in the second half of the year because even we will only have 3 11th of the euro. Nevertheless, we will make a number of efforts to produce French drama.
We will broadcast, but we have sufficient leeway to have an increase versus 2019 20 20. The increase will be moderate, but we give ourselves some flexibility for a September programming. As regarding Sato, they can provide you with their figures. The figures are keeping the budget presented. They're doing quite well.
If you compare with last year, I think the summer months are not necessarily the most important one for subscribers. It's really the end of the year that will play a part. It will also depend on the events we put on SaoTse in September, but things are going according to plan, both for subscriber and funding. What we said this is what we said when we presented the figures about Salto.
We've got our next question by Conor O'Shea, Kepler Cheuvreux. I have a few questions, if I may. Regarding Salto, you talked about 7 €1,000,000 in terms of operational losses for Salter and Bedrock for H1. What should we expect for the full year in terms of your contribution, your share of the contribution? Secondly, for radio, contrary to TV, which is not back to 2019, it's not back to 2019 levels in terms of revenues, especially in Q2.
I can imagine that lockdown or curfew has an impact, but very often radio responds very quickly whenever there's a change in scenario. So are you expecting a recovery during H2 or Q3 And maybe some catch up of radio on TV? And then third question, could you just give us some color with the hindsight now about with examples of the permanent savings that have been identified and secured thanks to the pandemic, in fact, ways of doing things differently in particular in terms of production and so on? And any idea of what that should mean in terms of cost savings? Thank you for your question regarding Salto.
The draft budget expected a share of losses for €22,000,000 for M6, so it's onethree share after tax impact. And we are on plan now. So there's no reason to say that we're not on plan. Regarding Bedrock, we've been de consolidating Bedrock with the 50% disposal of RTR Group. And so we have fully allocated earnings or lost days, and so no surprise here.
It's the same order of magnitude, keeping in mind that we are ramping up with Bedrock with new customers and above all new service to our current clients. Regarding radio, radio right now, well, the advertising business of the last 4 months will depend on in store traffic. It's very important. So far, contradictory measures were given on vaccine passports in shopping malls in particular. If there are no vaccine passports in shopping malls for the long term, there should be decent business for radio.
If there's a vaccine passport obligation, it should be more difficult for advertising. Some sectors suffered on radio and television, in particular, automotive, of course, tourism. But other sectors are doing better like specialized retail or mass retail. That's what we can say right now without making any precise predictions about the radio business for the last 4 months. Regarding your question about whether there are permanent recurring savings related to the extent of the COVID crisis, so to speak.
Regarding programs, apart from optimization, which is not COVID specific, our program line, there are no savings to be expected. That should be rather extra spending in terms of production, given the protection that should be lifted on thermal TV sets or because of post production postponements and extra health measures and contract tracing. So cinema or TV production or production of sports events are not going to be less costly. It should be rather the opposite. There will be exceptional increases for some production spending that we are trying to absorb in our budget.
2nd comment regarding structural savings. At corporate level, we made efforts to optimize our structural costs because of remote working and more flexibility. For instance, from the 1st July onwards, we vacated the building that we rented, the lease was up, and we've absorbed the population from this building in the various facilities that we occupy. So there are going to be similar recurring savings, but this is not a considerable amount. Most of our expenditures are related to programs.
And so we're not expecting to decrease very strongly our programming spending to stay competitive, both with the additional competition, but also with the competition from SVOD? Very clear. Thank you. Thank you. We have a next question from Julien Rote, Barclays.
Over to you, sir. Yes. Good evening, Nicolas and Jerome. Thanks for taking my question. Coming back to good prospects for advertising in July, August and new visibility over to the I don't know if you could, what does that mean, Taking 84% of Q2 and making the comfortable differences that's first 40.
Can we have any idea of what good means? And second question about government support, the 16.9% in H1. Will you receive further subsidies in H2? And if so, by how much? And third question, can we have a split of the 7.9% between Q1 and Q2?
Thank you. Well, looking good, let's do it of linguistics. Looking good means positive for us. So that means that advertising will be positive for us for July August, But August is not over yet. And also, there was a recovery last year, so we're not dealing with the same figures as March or April or April.
Last year, we had minus 70% advertising revenue in April. Conversely, July August were looking good once again. So we're comparing ourselves to 2019. That's the benchmark really. So we're going to have an increase for the 2 summer months.
But let me remind you that the 2 summer months will not be the biggest in the year and by far. For September, once again, looking date to date, we are rather positive. And simply saying we are cautious because last year, a lot of the inventory came in late in the month. And so we are careful to have the fact that if the vaccine passport was to be strengthened and so on, what we booked late last year will not be booked this year. So I can't make any forecasts.
I'm simply saying that in many other consumer based sectors, you can see that there's a lot of spending appetite, which is sustained by television in particular. And there's the same experience for digital, which is holding up well. And for the Japan, the figures published for Q2 are dizzying. That shows the competition for these operators on the advertising market, which is really 1 and only a single market for judicial for advertising. Regarding your question, public subsidies from the government.
Well, to be quite clear, the mechanism that was initiated and was voted in the finance bill last year. But given Brussels commented was not booked in 2020 accounts because we didn't have Brussels go ahead. And so it's in H1 that it was booked. As we consume the subsidies, most of that is booked in H1 for TV and radio. So there's going to be a remainder for H2, a very small remainder for 'twenty, H2 2021.
That's what we can say and it will depend on the programming policy, but don't expect a big earnings impact by any Q2. And maybe just, Julien, to add to that. In accounting terms, this is an entry to Q2. You were talking about Q1 versus Q2 because of the publication of the decree, which was in June, only allowing us to book from then on. So in June, we took the full effect for 2020 and H1, 2021.
So a very small impact on H2. A small impact in Q2, so very clear. Thank you. We have a question by Chris Cherblanc, Societe Generale. Thank you.
Yes, good evening, everybody. Thank you for taking my question. I had the first question about Salto. You mentioned that the impact for the full year was after tax impact. The tax savings, is it recognized in the contribution for equity affiliates?
Or is it in the earnings, if you look at the income statement and you talked about a positive tax balance, but it's still fairly significant. I wanted to know what that was for. And still about Stolto, you have a partnership with TF1 and France Television. If you're making projections and if you were to have a merger with TF1, what would be the attitude? Would it be softer?
Would you be more aggressive? Ideally, would you like to only have an isolated partnership with TF1 and no longer have France positioned in it? After the merger, would there be a change in the strategy regarding Sarto? Well, before I let Jerome answer about the accounting impacts, just one clarification regarding the projected merger. The cost due to the projected merger, which are said to, were handled as one offs in H1 that was booked in the expenses of the company for €3,500,000 And so we could have used it to calculate the operating margin, but it would have seen marginal.
That was number 1. Number 2, to answer your question about SALTO, we will fully honor all of our commitments vis a vis our partners, especially France Televisions. But then maybe there will be a discussion if the merger is adopted, which we are all looking forward to. We will have a discussion with our partners, in particular France TV, to know what their position will be vis a vis the merged entity. Let me remind you that we've benefited from an official statement in favor of the merger by Funds TV.
But then Funds TV will have to decide on its streaming policy. And we are going to look at it in due course and in full compliance, of course, with the agreements that we signed when we designed Sarto. So regarding the equity part of Sarto, it's an FMC, so it's transparent in tax terms. So we have it as an equity affiliate for our share of 1 third, and you can see it in the net income group share. But for Bedrock, it's subject to corporate tax.
So we are taking our share of their net posted profit. For the tax balance in 2020, in 2021, we did some in 2020, we had some restructuring operations, including operations, which means that we had some deductibles. And so that reduced the tax burden for the amount of this operation, And which was EUR 15,000,000 EUR 15,000,000 roughly, yes, we are still calculating. Okay. Thank you.
Thank you. We have a question from Thomas Coudry, Brian I have 3. The first one, if we go back to the credit, could you confirm that these benefits won't have to be reimbursed, yet they are booked once and for all? Secondly, I wanted to know more about addressable advertising. Could we know a bit more about how attractive this product is?
Is there good? Is it really embraced by consumers? Are they accepting the fact that they're giving over their data? And also whether advertisers are accepting that? And another question about the context regarding the merger deal with Tier 1.
I wanted to know how you are making sure that your team stays mobilized in this context? There's some uncertainty for the team about the positions and the headcounts? How are you looking at that? Thank you for your last question. Regarding headcount motivation, it's untouched.
It is still we're still competing with all other market players. Let me remind you that we had various public council meetings that unanimously approved the projected merger in the various public councils. So now, of course, the procedure is going to be very lengthy, very cumbersome, very comprehensive, very administrative, very heavy and cumbersome. This is France after all. So we are going to look at what is happening in the Netherlands.
When we're looking at the Dutch colleagues undergoing the same operation, it seems to be quicker and less complex there. So of course, we will comply with the regulatory obligations and the law. However, we could observe that this is a very cumbersome decision for both groups. I would even say the 4 groups because that also involves the 2 shareholders, Bouygues, which is going to be the exclusive controlling shareholder in cases of other successful operations as well as RPL Group. And you're right to point out that meanwhile, the 2 companies need to work independently.
And these are efforts that are required, major efforts required from lithium companies. So the Competition Authority via its President is committed to have a public answer by October. If you were to give their opinion earlier, we would be very satisfied. If that is to be positive, we would be extremely positive and extremely satisfied to have a positive answer because, 1, we are looking forward to having this merger to strengthen the momentum of our 2 companies. It's not just expensive, but it's also very aggressive as an operation.
We have big projects. In particular, we want to grow programming, to optimize programming, to grow digital and to focus on French language production and local production. So it's a very positive project. And we want to offer more firepower to our clients that are looking to compete effectively against some oligopolies, which are being built in terms of digital supply. Let me remind you that the production business is being consolidated very quickly.
We have the biggest flow producers with ENGIE and Admiral that merged the media one controlled by JKM is now much, much bigger with very big acquisitions in drama production, in animation and movies in Europe. French consolidation in terms of publishing. So what we're offering with the limitation on vertical concentration, as publishers, we are limited in how much you can concentrate vertically, but we want to build a group that could rival more effectively the competition and we can want to be more aggressive in terms of offering for TV and also audio for radio will be much more efficient. We can save on structural costs. We can have optimized programming in terms of the circulation of IP, and we will be more suited to the face of viewers and listeners, and we will have more local content and that could be beneficial to producers because more optimized revenues and more optimized programming that stronger group with more oil drilling.
And in terms of news, we'll still develop quality news. On FX, news is very successful at noon and at 7:45 with our newsroom show, and we want to leverage that in terms of the news and media pluralism compared to what's going on, on social media. So size is going to be a prerequisite, and the quality of the team will allow us to have a very powerful group in France. And I think that this merger is really a very good thing and a great opportunity for the French market, a tremendous opportunity. And if it was not possible, that would be a historic big opportunity to have a great audiovisual group that would benefit consumers and clients.
To answer your question about subsidies, Governmental, as you may know, I'll repeat that again, is fully one off. You can just remind I'll remind you that there were an incentive for broadcasters to maintain their orders in artificial production. So that's 15% of our commitments is subsidy. So for the M6 base, that's about €100,000,000 in commitments made. So that translates into EUR 50,000,000 in subsidies to date.
And then in accounting terms depending on accounting rules, it was booked as a sort of broadcasting retrospective broadcasting support after the programs were aired. Some were aired in June in 2020 and broadcast both in 2020, a broadcast in 2020, some deferred into 20 21. So it's a one off support to support the industry in the last few months.
That has allowed us to maintain investment in drama last year and commitment in programs. As I was saying earlier, the funds part of the difference in production costs that were requested by some of our producer partners are produced by us related
to COVID.
Let me give you an example. We've had a movie that will come out at the end of next week, where we have had to stop shooting because of COVID, whereas we had tried to maintain production. So in many cases, we have had to face significant cost overruns in the area of production and discontinuing. Besides, we have a number of constraints today that are quite strong in terms of theatrical releases. Camelot, for example, is a real hit.
We've invested a lot in this movie that is following the series. It has had 1,000,000 admissions in the 1st week. We think we have lost close to 1,000,000 admissions in that week because of the Health Passport. It's a pity because it's a major success. We will have a financial balance, but that is one of the main investments that will allow us to fund other things.
We are involved with 2 other movies that will come out at the end of the summer, Like I said, the other one, SS-one hundred and seventeen, of course, they're going to suffer from the health care passport as a whole sector. Thank you. I had one update on addressable advertising. Do you have something to say well? On addressable advertising remains marginal for a number of reasons.
The main one being that we don't have much room, It's not necessarily very positive today. We have a good advertising activity, and we have a good observation of advertising screen. Secondly, it concerns only a number of boxes because they have addressable advertising. We said top of that have to be connectable. So it's quite marginal.
It's going to take time. We're thinking of a number of positions because we think there should be consolidation in commercial offers. Each company won't be able to stay individually. That is an example of what the merger can bring. It's very important.
We always think it is a defensive merger. On the contrary, today, when we do addressable advertising on TF1 and geolocated advertising. But, geolocated advertising. But the advertiser wants more power, YouTube and all that, to be able to be efficient. We can reinvest.
We have to reinvest part of that money in French and European production, movies, drama. If addressable, advertising is a good thing. We have to have to be able to offer advertiser power in geolocation. And the fact of having M6 and TF1 channels together that will allow us to offer our customers in different cities efficient addressable advertising. Today, when you match the different channels, the different boxes available, geolocation, well, you have reduced the figures and you're not very competitive with those who offer address both advertising on systems that are not regulated like YouTube.
So from that point of view, it is in our interest to have that merger. But to answer your question, that form of advertising is still relatively insignificant. Thank you. We're taking one last question, Jerome Boudin, ODDO, Gjerce. Yes, good evening to all.
Two small questions. You were mentioning rights in movies, the constellations related to COVID. How is the rights activity behaving? Is could that offset the more difficult half, too? You mentioned the cost of merger on the first half.
You said €3,000,000 Regarding Part 2, I wanted to make sure that this amount is integrated in the right category. The specific amount is 3,500,000 euros of expenditures. We have a committee of independents that have had to make a number of decisions. We have carried studies with the BCG. The amount should be slightly lower on the second half of the year.
But we will have other expenses related to the merger in the second half of twenty twenty one and in twenty twenty two until merger is implemented and we hope it will be. Regarding the application of rights, Here again, the merger would create value for everybody. Today, we need to circulate the works. We need to develop production and with a lot of ambition. Let me give you a very practical example.
And that is a very personal conviction. In M6, we were able to do short action. Camelot, Sierra Garcia, We have Saint Louis Menage. We have Aunt Ami. All of those short drama or good quality.
We've had Sona on W9 quality stuff. But we're not happy in terms of volume of French primetime drama. We would like on M6 to develop prime time drama. Why don't we do that massively? Because in September, as of the middle of August, you will have regular program
on that. Why is it
that we haven't done it so far? Because the French section is we wanted to be successful, must be arable. Given the variety of over we have on SVOD and on linear channels, is a fragmentation of audience given the cost of French fiction costs between €700,000 800,000 an hour, sometimes 1, 2, 3 to have an efficient audience. TF1 does it very well. They have more efficient revenue given their size.
That is why there is this difference. We could be an excellent platform of a second to broadcasting like, for example, what TF1 does already. We have a lot to learn from them in this area. So it's very important for viewers to be able to develop French drama. And all this would be good for everybody.
Here again, the fragmentation that was decided when VTT channels were launched, That has meant a loss of competitiveness and value for French channels. Another example, I'm thinking of free VOD and streaming. We will have very important investments to make. There will be no difference between linear and linear. You will have part of TV consumption that will be done in a non linear context.
We have started also investing regarding M6. We have specific investments on the nonlinear through 6 days of merger, those investments will, in fact, be good for the viewer because we will also have optimization of all of those programs. So I am convinced that this will create value for the whole French ecosystem and because fragmentation, excessive scattering has been synonymous of loss of value for the whole ecosystem. So thank you very much for this presentation of the half year. See you for the yearly results.
We are reasonably optimistic about our activity in the second half of the year. We will do our utmost. Of course, we have no control over the health crisis and this stop and go policy, lockdowns. But we feel that people want to consume, and it's good to be able to answer the request of the public and the market for the second half of the year. So have a very good summer, and see you for the presentation of the annual accounts.
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