NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2014

Transparency directive : regulatory news

17/03/2015 17:53

Paris, March 17, 2015
NRJ Group 2014 annual results

2014: the NRJ Group stepped up its development, backed by its strong financial
                                     position.
              Current operating profit (ROC)(1) of EUR50.3 million
   Net profit Group share of EUR9.3 million, impacted by non-recurring stock
                                   depreciation
        Strong financial position with net cash of EUR119.0 million

* Radio in France (MME): in a difficult economic climate , ROC(1) fell due to
  the high comparison base.

* Television: downward movement of ROC(1) linked primarily to the cost of HD
  roll-out of Chérie 25 in
  France and the drop in revenue from NRJ 12.

* International: strong increase in ROC(1) driven by the three main geographic
  areas.

* Broadcasting: high profit growth sustained through development of the
  activity and positive nonrecurrent items in 2014.

* Non-recurring depreciation of EUR35.8 million posted for stocks of TV programs
  which no longer fit the Group's audience targets.

In a statement made at the time of publication of the annual results, Jean-Paul
Baudecroux, CEO of NRJ GROUP, said: "2014 will be a year of transition for the
NRJ Group. The difficult economic climate has had a major impact on our
activities. Our results also suffered from non-recurrent depreciation posted for
program stocks in the TV division. The changes we embarked on in 2014 will
continue throughout the 2015 fiscal year. Our strong financial position allows
us to reaffirm our objective to consolidate our leading position on the radio
market and to win new audience shares in television."

                              Key income figures

12 months rolling to December 31 (in EUR million)    2014    2013(R)    Change

Revenue excluding dissimilar barters                372.3     404.3     -7.9%
Revenue including dissimilar barters                376.9     409.4     -7.9%
Current operating profit excluding dissimilar
barters                                              50.3      56.8    -11.4%
Current operating profit                             49.9      56.6    -11.8%
Non-current operating income and costs              (36.8)     (4.8)  unknown
Operating profit                                     13.1      51.8    -74.7%
Net income Group share                                9.3      19.8    -53.0%

At December 31 (in EUR million)                      2014    2013(R)    Change

Net cash position*                                  119.0     102.6     +16.0%
Shareholder's equity (Group share)                  509.7     513.8      -0.8%

(R) As a result of application of the IFRS 11 standard, retrospectively to
January 1, 2013, the companies which were previously proportionally consolidated
are now consolidated by the equity method; the figures for the full 12 months of
2013 have thus been restated and will not match those in the published 2013
annual results.
* Current cash net of financial liabilities related to financing operations.

(1) Current operating profit excluding dissimilar barters.

          Current operating profit (excluding barters) by activity

12 months rolling to December 31 (in EUR million)    2014    2013(R)    Change

Music Media and Events                               42.6      53.1    -19.8%
Television                                          (24.6)    (21.9)   -12.3%
International Activities                              9.4       8.1    +16.0%
Shows and Other Productions                           2.1       3.9    -46.2%
Broadcasting                                         20.4      14.7    +38.8%
Other activities                                      0.4      (1.1)     NA
Current operating profit excluding
dissimilar barters                                   50.3      56.8    -11.4%
Operating profit from dissimilar barters             (0.4)     (0.2)  unknown
Current operating profit                             49.9      56.6    -11.8%

Music Media and Events (MME): ROC(1) of 42.6 million (-19.8%) in 2014

In the difficult economic climate of 2014, the Music Media and Events division
posted revenues of EUR193.7  million, down 4.2%. It does however continue to
have strong fundamentals: the Group's radio stations are listened to every day
by close to 12.4 million listeners and NRJ, which has confirmed its position as
the number 1 radio in France with 152,000 more listeners than the radio station
ranked second brings together 6,635,000 French people every day(2).

The current operating profit for Radio in France fell as a result of:
- lower revenues linked to the difficult economic climate which had an adverse
  effect on advertisers' buying decisions;
- a high comparison base: EUR3.7 million of positive non-recurring items in
  2013.

The Digital sector, which makes a marginal contribution to the current operating
profit of the MME division (around 4%),  posted a significant increase in
profitability (+25.0%).

In 2015, the Group intends:
- to increase its audience shares through its "flagship" NRJ and its three adult
  stations (Radio Nostalgie, Chérie FM and Rire & Chansons) which should reap
  the benefit of the editorial work that has been ongoing for the last few
  months;
- to increase sales team resources, against a backdrop of competitive and
  financial pressure;
- to continue its digital investments in the entertainment sector in order to:
  improve data qualification and monetization; launch new brands
  (websites/apps); capitalize on the listing of new websites and apps ; improve
  the marketing of Group content on third party websites.

Television: ROC(1) of -EUR24.6 million in 2014 (vs -EUR21.9 million in 2013)

In 2014, the Television division posted revenues of EUR74.8 million, down 7.2%.

The additional EUR2.7 million operating loss generated by the television
division was due to:
- a fall in NRJ 12 revenue;
- a significant increase in TNT HD broadcasting costs for Chérie 25, as a
  result of the channel's roll-out schedule in France.

The NRJ Group begins 2015 determined to win audience shares. To confirm this
commitment, it posted EUR35.8 million of non-recurring depreciation for stocks
of programs which no longer fit the Group's audience target. The Television
division enters 2015 in a stronger position and this will allow it to deploy an
offensive editorial strategy with a view to gaining audience numbers.

2015 will be a year of transition marked by an increase in scheduling costs (of
somewhere between 30% and 40%) and sales team resources. However, the increase
in program scheduling costs should not impact revenues until the second half of
2015. The full impact of the higher audience numbers and revenue should be felt
in 2016. Backed by a stronger editorial line-up, the NRJ Group is targeting
break-even for its Television division in 2017.

(2) Médiamétrie, 126,000 Radio, November-December 2014, LàV 13+, NRJ,
5 am-midnight, cumulative audience.

International Activities: ROC(1) of 9.4 million (+16.0%) in 2014

In 2014, the International Activities division posted revenues of EUR38.7
million, up 4.6%.

As stated in the annual revenue figures announced, revenues for Finland are no
longer posted to "revenue" but to "other income" since the Group embarked on a
commercial cooperation with the MTV MEDIA group on November 1, 2014. In 2014,
Finland generated revenues of EUR4.1 million. The practice of posting revenue to
"other income" does not impact the current operating profit calculation.

The International Activities make an important contribution to Group results.
Indeed, the current operating profit excluding dissimilar barters grew 16.0% to
EUR9.4 million in 2014.

This strong growth reflects an increase in current operating profit in Germany
and Belgium, driven by higher revenues and cost control, and an improvement in
the current operating profit generated by Austria which benefited in particular
from the 2013 closure of the loss-making radio stations in Styria.

In 2015, the Group plans to pursue profitable growth by strengthening its
position on high-potential markets (particularly Germany and Belgium), while
continuing to keep costs very much under control.

Shows and Other Productions: ROC(1) of EUR2.1 million (-46.2%) in 2014

In 2014, the Shows and Other Productions division posted revenue of EUR4.2
million (versus EUR29.1 million in 2013)  and a current operating profit
excluding dissimilar barters of EUR2.1 million (versus EUR3.9 million in 2013).

The "1789 Les Amants de la Bastille" show contributed EUR0.4 million to current
operating profit compared to its 2013 contribution of EUR1.2 million as a result
of the musical closing on January 5, 2014.

The current operating profit from the music label segment also fell EUR1.1
million to EUR1.5 million. This was caused by a fall in the market for physical
sales and a high comparison base which included two editions of the NRJ Music
Awards (usually one). Despite this, the Music label segment sustained a high
level of profitability (operating margin of 53.6% in 2014).

Broadcasting: ROC(1) of EUR20.4 million (+38.8%) in 2014

In 2014, the Broadcasting division posted revenues of EUR60.9 million, up 9.9%.

EBITDA(3) was EUR31.1 million in 2014 compared to EUR28.4 million in 2013. The
current operating profit excluding dissimilar barters was EUR20.4 million in
2014 compared to a 2013 figure of EUR14.7 million, up 38.8%.

This increase reflects the development of the Broadcasting division and positive
changes for a value of almost EUR4 million in non-recurring items between 2013
and 2014, including nearly EUR2 million posted to 2014.

In terms of 2015, the Group has announced that the Audiovisual Council (Conseil
Supérieur de l'Audiovisuel) decided on January 21, 2015 to postpone the
deployment phase of the R5, R7 and R8 networks, originally planned for April 7,
2015 (phase 12). In addition, 10% of the TNT contracts will be renewed in 2015
and are likely to suffer from fierce competition.

                                      ***

Over the 2014 fiscal year, the NRJ Group generated a current operating profit
excluding barters of EUR50.3 million, which was down 11.4% on the previous
year.

The Group generated operating profit of EUR13.1 million (compared to EUR51.8
million in 2013). This includes non- recurring depreciation of EUR35.8 million
for program stocks in the Television division which no longer fit the audience
target.

The net profit Group share was EUR9.3 million in 2014 compared to EUR19.8
million in 2013. It includes a profit of EUR1.3 million and a tax charge on
profit of EUR6 million.

The net cash surplus* as at December 31, 2014 was EUR119.0 million, up EUR16.4
million on the December 31, 2013 figure, i.e. growth of 16.0%.

The Board of Directors, at a meeting on March 17, 2015, canceled 2,663,689
treasury shares, equating to 3.28% of the capital. The share capital now stands
at EUR784,178.46 divided into 78,417,846 shares.
The Board of Directors will also propose that the General Shareholders' Meeting
on May 20 approves a new share buy-back scheme.

(3) Current operating profit excluding dissimilar barters before amortization
and provisions.

Finally, in view of the investments it will make in the Television division in
2015 and the still uncertain economic climate, the Group will exercise caution
in its use of available cash. As a result, the Board of Directors will propose
to the General Shareholders' Meeting that no dividend is paid for fiscal year
2014.

                                      ***

                                    Outlook

Outlook: In 2015, the Group will continue to implement the changes which began
in 2014. This will be a year of transition, marked particularly by investment in
television and an increase in the sales team resources in both Television and
Radio. The Group will also capitalize on its continued profitable growth on the
international market and the development of its broadcasting activity.

Next dates: Publication of the financial information for the first quarter of
2015 on May 6, 2015 (after close of trading). The Group's General Shareholders'
Meeting will be held on May 20, 2015.

Additional information :

The NRJ Group's corporate and consolidated accounts for fiscal year 2014 were
approved by the Board of Directors at its meeting on March 17, 2015.
The corporate and consolidated accounts have been duly audited. The
certification reports will be issued once the formalities for filing the
Registration Document have been completed or the annual financial report has
been published.

About NRJ GROUP

NRJ GROUP is one of the leading French private media groups and an international
player present in 15 other countries, either directly or under licensing
agreements with the NRJ/ENERGY brand, the number one international radio brand,
and/or NOSTALGIE/NOSTALGIA. In France, the Group is the private radio market
leader and one of the new players on the television market. The Group is also
a significant player on the radio broadcasting market, through its subsidiary
towerCast, number two on the French broadcasting market. NRJ GROUP is
a publisher, producer and broadcaster, and markets its own media spaces. For
several years, it has been supported by the strength of its radio media and its
NRJ, NOSTALGIE, CHERIE FM and RIRE & CHANSONS brands, as well as its marketing
expertise and commercial power for deploying new media, particularly in the
Television division, or new ways to access its media, principally the internet,
and related activities around partnerships in order to follow and anticipate
consumer developments, while offering a wider range of advertising services
for its clients.

NRG GROUP shares are listed on the Euronext in Paris (compartment B).
Codes - ISIN: FR00012169; Reuters: SONO.PA; Bloomberg: NRG FP.

                        Analyst and Investor Information
       NRJ GROUP - Communication Financière [Financial Communications],
                  46-50 avenue Théophile Gautier 75016 Paris
     Célia d'Everlange/Tel: + 33 1 40 71 78 05/e-mail: cdeverlange@nrj.fr
                                www.nrjgroup.fr

      NRJ GROUP, A public limited company with capital of EUR784 178.46 -
                          SIREN 332 036 128 RCS PARIS
                    Head office: 22 rue Boileau 75 016 Paris

source : webdisclosure.com

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NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2014

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