NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release - 2016 revenues

Transparency directive : regulatory news

02/02/2017 17:47

Paris, February 2, 2017 - 5.45 pm
2016 revenue

                 Good quarter for the Media business(1) : +2.8%

     Consolidated Group revenue(2) for 4th quarter, 2016: EUR104.7 million

       Consolidated Group revenue(2) for the year 2016: EUR369.8 million

In millions of euros
                           2016    2015      Change    2016   2015     Change

Music Media and Events     58.1    57.5 (r)   1.0%    193.5  197.2 (r)  -1.9%
Television                 23.5    22.1       6.3%     85.6   83.0       3.1%
International Activities   10.0     9.5       5.3%     35.5   34.2       3.8%
Broadcasting               13.1    15.9     -17.6%     55.2   63.3     -12.8%
Revenue excluding
dissimilar barters        104.7   105.0      -0.3%    369.8  377.7      -2.1%
Dissimilar barters          1.3     2.0     -35.0%      4.1    4.4      -6.8%
Revenue including
dissimilar barters        106.0   107.0      -0.9%    373.9  382.1      -2.1%

(r)Restated after aggregation of the "Music Media and Events" and "Shows and
Other Productions" segments into a single operating segment.

The Media(1) business made progress in the 4th quarter of 2016, posting growth
of 2.8%, despite the skewed Médiamétrie audience results in the radio
segment. Over the full year, revenue(2) for the Media(1) business was broadly
flat, at EUR314.6 million (with a 2.2% drop in radio revenue).

MUSIC, MEDIA AND EVENTS (MME): AN ATYPICAL ENVIRONMENT

The practices of Fun Radio continued to affect the audience figures for
November/December 2016, as measured by Médiamétrie as part of the "126,000
Radio" study(3). In the view of the NRJ Group, the restatement method used by
Médiamétrie does not properly correct the residual effects of these practices
on the radio audience figures.

As reported previously, the President of the Paris Commercial Court and the
Paris Court of Appeal(4) have stated that  the large-scale campaign aired by
Fun Radio, which encouraged listeners to give a false account of their
listening habits, distorted the Médiamétrie audience figures for all radio
stations. On December 16, 2016, the NRJ Group brought a case against Fun Radio,
RTL and IP France for unfair competition before the Paris Commercial Court. The
campaign, which had been running since at least September 2015, impacted on the
audience results for NRJ Group stations for the whole of 2016, and weighed on
the Group's 2016 revenue for all its radio commercial activities.

Despite the harmful effects of the campaign on advertising revenue, the MME
segment posted revenue(2) of EUR58.1 million in the 4th quarter of 2016, an
increase of 1% on the 4th quarter of the previous year, thanks to sales efforts
by the advertising team. The full year 2016 figure was EUR193.5 million, down
1.9%.

Digital operations grew strongly over the period, with revenue up by more than
16%. The Group is the leading private operator of digital radio in France, with
more than 220 Internet radio stations (39.6 million active listening sessions
in France(5) and 48.3 million active listening sessions worldwide(5)). NRJ is
France's top digital radio brand (24.4 million active listening sessions in
France(6) and 28.9 million active listening sessions worldwide(6)).

In addition to marketing around the Internet radio stations, this growth is
being driven by the Group's entire digital ecosystem, particularly the
popularity of its catch-up services and the excellent results from local
advertising.

TELEVISION: HIGHEST EVER ANNUAL AUDIENCE SHARE

Revenue(2) for the TV segment (NRJ 12 + Chérie 25) rose by 6.3% to EUR23.5
million in the 4th quarter of 2016, driven by higher audience figures both
across the entire viewing public and for all commercial targets.
Full year 2016 TV revenue(2) was EUR85.6 million, up 3.1%.

Over the year, the TV segment saw its audience grow by 12% (+0.3 pp), reaching
a record share of the total audience of 2.8%(7) in 2016, up from 2.5%(7) in
2015. Overall, the Group had more than 41 million viewers(8) each month, thanks
to two complementary channels with a weekly offering of original magazine
shows, films and a range of novel series.

NRJ 12 had an among all audiences share of 1.5%(9) in the 4th quarter of 2016,
compared with 1,6%(9) a year earlier. The channel was able to capitalise on the
programming of highly popular series aimed at its core target groups, such as
The Big Bang Theory and the return of a successful brand with a new series of
Friends Trip. Full year 2016 audience share for the channel was 1.7%(10) among
all audiences, compared with 1.8%(10) in 2015.

Chérie 25 posted a fresh increase among all audiences share in the 4th quarter
of 2016, to 1.2%(11) from 0.8%(11) a year earlier, (including a record share of
1.3%(12) in December 2016). The channel has benefited from successful film
programming and its offer of signature, audience-generating magazine-style
shows. Full year 2016 audience share for the channel was 1.1% (13), compared
with 0.7%(13) in 2015.

Remaining true to its "100% Music, 100% Hits" concept, NRJ Hits, the Group's
third channel, capitalised on its position as the top cable-satellite-ADSL
music channel(14) with nearly 4.9 million viewers each month(15).

INTERNATIONAL ACTIVITIES

The Group's international activities posted revenue(2) of EUR10.0 million in
the 4th quarter of 2016, an increase of 5.3%. This increase was driven by the
segment's biggest contributor, Germany. Full year 2016 revenue(2) for the
Group's international activities was EUR35.5 million, up 3.8%.

BROADCASTING

The broadcasting segment recorded revenue(2) of EUR13.1 million in the 4th
quarter of 2016, a decline of 17.6%, due to the early termination of its
broadcasting contracts (multiplexes R5 and R8). Revenue for full year 2016 was
EUR55.2, down  12.8%.
The broadcasting segment has continued to pursue further market share,
particularly in the radio market in France.

Next release: 2016 annual results - on March 16, 2017, after close of trading.

Notice: Some of the information contained in this financial release may be
provisional. This information reflects either trends or objectives and cannot
be taken as a forecast of results or of any other performance indicator. By its
very nature, such information is subject to risks and uncertainties which may,
in certain cases,  be  beyond the Company's control. More  details on these
risks and uncertainties can be found in the  Company's Registration Document,
which is available on its website  (www.nrjgroup.fr) in the "Finances/
Publications financières/ Rapports financiers" section.

Sources:

(1)The Media business includes the MME, Television and International Activities
segments.

(2)Excluding dissimilar barters.

(3)Médiamétrie press release dated January 19, 2017.

(4)Ruling of the Paris Commercial Court (Tribunal de commerce de Paris) of 12
July 2016 (RG 2016042716) and judgement of the Paris Court of Appeal (Cour
d'appel de Paris) of 20 September 2016, RG 16/42716.

Sources: ACPM-OJD, Global digital radio broadcasting, December 2016.
(5)Groupe NRJ, (Worldwide: 48,280,223 active listening sessions + 30 seconds,
France: 39,567,911 active listening sessions + 30 seconds).
(6 NRJ, (Worldwide: 28,895,388 active listening sessions + 30 seconds, France:
24,352,148 active listening sessions + 30 seconds).

Sources: Médiametrie-Médiamat, aged 4 years +, Monday to Sunday, 3h-27h.
(7)(NRJ 12 + Chérie 25), Audience share, Day of viewing, Annual change, 2016
vs 2015.
(8)(NRJ 12 + Chérie 25), Monthly coverage 2016.
(9) NRJ 12, Audience share, Day of viewing, Annual change, Q4 2016
(03/10/16-01/01/17) vs Q4 2015 (28/09/15-03/01/16).
(10) NRJ 12, Audience share, Day of viewing, Annual change, 2016 vs 2015.
(11) Chérie 25, Audience share, Day of viewing, Annual change, Q4 2016
(03/10/16-01/01/17) vs Q4 2015 (28/09/15-03/01/16).
(12) Chérie 25, Audience share, Day of viewing, December 2016.
(13) Chérie 25, Audience share, Day of viewing, Annual change, 2016 vs 2015.

Sources: Médiametrie-Médiamat'Thematik, consolidated audience, full wave 31
(January 2016-June 2016), Monday to Sunday, 3h-27h, aged 4 years +.
(14)Ranking TME.
(15) Coverage 4 weeks viewing threshold 10 consecutive seconds.

About NRJ GROUP

NRJ GROUP is one of France's leading private media groups in the publishing,
production and broadcasting sectors and also markets its own media spaces.

In France, the Group tops the private radio market with its four brands (NRJ,
CHERIE FM, NOSTALGIE and RIRE & CHANSONS), is a significant player on the
television market where it operates and develops two free national channels
(NRJ 12 and CHERIE 25) and a paying channel (NRJ HITS, the number 1
cable-satellite-ADSL music channel) and, through its subsidiary towerCast,
ranks number two on the French broadcasting market. Backed by its strong
brands, marketing expertise and commercial performance, in recent years the
Group has also developed a digital ecosystem enabling it to monitor and
anticipate changes in the consumption of media via new delivery mechanisms,
expanding its original brand portfolio through websites, mobile apps,
multi-channel networks and more than 220 Internet radio stations. Today, NRJ
Group is the number 1 Internet radio private group in France. This digital
presence enables the Group's advertising business to provide its clients with a
more targeted offering, thanks to the strategic data collected by the  Group.

On the international market, the Group is present in 11 other countries, either
directly or through NRJ/ENERGY, the number one international radio brand,
and/or NOSTALGIE/NOSTALGIA licensing agreements.

NRJ GROUP shares are listed on the Euronext in Paris (compartment B).
Codes - ISIN: FR000121691; Reuters: SONO.PA; Bloomberg: NRG FP.

Analyst and Investor Information
NRJ GROUP - Investor Relations 46-50 avenue Théophile Gautier 75016 Paris -
www.nrjgroup.fr
Ghislaine Gasparetto - Actifin / Tel: + 33 1 56 88 11 22 /
e-mail: ggasparetto@actifin.fr

NRJ GROUP, a public limited company with capital of 784,178.46 euros
Head office: 22 rue Boileau 75016 Paris
332 036 128 RCS PARIS

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NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release - 2016 revenues

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