UPDATE 2-M6 H1 core profit resilient, July better for ads

* H1 core advertising sales down 14.1 percent

* H1 operating profit up 0.9 pct at 107.5 mln euros

* Says not to extrapolate 2009 operating income from H1

* CFO tells Reuters July better than previous months

* CFO tells Reuters still eyes lower 2009 operating income (Adds comments from CFO interview)

PARIS, July 28 - M6, France's second-largest commercial TV broadcaster, posted a flat first-half operating income on Tuesday, as lower programming costs helped cushion the impact of depressed advertising markets.

But the company, which expects lower 2009 operating income, told investors not to extrapolate the first-half performance to the full year, citing low visibility in the economic slowdown.

Chief Financial Officer Jerome Lefebure told Reuters by telephone that the trend for July was "better than that of previous months" for advertising revenue but that M6 had no visibility beyond July.

Core advertising revenue at the M6 flagship channel fell 14.1 percent, beating the 23 percent slump suffered by larger domestic rival TF1. ID:nLO327677

A Reuters poll of seven analysts expected M6 ad sales to fall 14.7 percent in the six months to June 30, after an 11 percent decline in the first quarter.

Both TF1 and M6 have been hit by deep cuts to advertising budgets amid a global economic slowdown but they also face competition from new media such as the Internet.

"TV advertising spending continued to decline in the first six months of the year in a market where visibility is very limited and volumes and prices unfavourable," the statement said.

In the second quarter alone, advertising revenue at the M6 channel fell 16.5 percent.

When asked if the worst was behind, Lefebure said: "I hope so ... July is better, we do not know how August will be."

Clients' behaviour remained "a little volatile" and "erratic," he added.

LOWER PROGRAMMING COSTS

M6, well-known for news programmes such as "Forbidden Zone" in France, said current operating profit rose 0.9 percent to 107.5 million euros, beating analysts' expectations of 98 million euros, on average.

The better-than-expected performance reflected a 23.7 percent fall in programming costs, when compared with 2008, when it paid for the Euro soccer championship broadcasting rights.

It also reflected the first effects of the group's cost savings plan, as well as resilience offered by the M6's diversified business. M6 expects to have less flexibility on programming costs in the second half.

"We will be hit harder by the revenue decline in the second half of the year, if this decline is confirmed ... overall the result for the year will be down," Lefebure said.

Total revenue reached 678.3 million euros, a 4.3 percent decline. Diversified revenue, which includes home shopping, videos, music, movie production and programme sales, rose 4.2 percent. Advertising revenue at the DTT channels and other media also jumped 18.6 percent.

The RTL Group owns 48.55 percent of M6 capital.

M6 shares closed down 3.49 percent at 13 euros on Tuesday, giving the company a market capitalisation of 1.7 billion euros.