NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2016

Transparency directive : regulatory news

16/03/2017 17:48

Paris, March 16, 2017 - 5.45 pm
2016 annuals results

                        Net profit Group share up 49.1%
          Current operating profit (1) excluding Broadcasting: +36%
        Radio activity impacted by the practices of a competitor (2)

The NRJ Group Board of Directors held on March 16, 2017, and chaired by
Jean-Paul Baudecroux, approved the 2016 annual accounts.

In 2016, NRJ Group generated revenue(1) of EUR369.8 million, down slightly
(2.1%) compared with fiscal year 2015.
Revenue for Media activities(3) was flat over the year, and that of the
Broadcasting segment declined due to the early termination of its broadcasting
contracts (multiplexes R5 and R8), related to the transfer of the 700 MHz band
to mobile telephone operators.

For fiscal year 2016, EBITDA excluding dissimilar barters* totalled EUR53.5
million, a slight decline of 2.6%.

Current operating profit(1) excluding the Broadcasting segment reached EUR16.1
million, up more than 36%.

Operating profit was EUR42.8 million compared with EUR28.4 million a year
earlier. This included EUR13.9 million of non-recurring income which
corresponds to the impact, net of expenses, of the compensation received by the
Group for damages following the early termination of multiplexes R5 and R8,
related to the transfer of the 700 MHz band to mobile telephone operators.

Consolidated net profit Group share was thus EUR33.7 million, a marked increase
of 49.1%.

At 31 December 2016, the Group posted a net cash surplus** of EUR159.6 million,
down EUR8.9 million compared with 31 December 2015. This decrease is mainly due
to the payment of EUR27.6 million following the tax audit initiated  in March
2013 covering the exit from the Consolidated Global Profit Tax System
(Bénéfice Fiscal Consolidé) (2010 tax return). A provision had been made for
this tax audit in the accounts for the 2013 fiscal year. The Group filed a
complaint at the end of December 2016.

In millions of euros                      2016         2015       Change

Revenue excluding dissimilar barters     369.8        377.7         -2.1%
EBITDA excluding dissimilar barters*      53.5         54.9         -2.6%
Current operating profit excluding
dissimilar barters                        29.1         28.9         +0.7%
Operating profit                          42.8         28.4        +50.7%
Net profit Group share                    33.7         22.6        +49.1%

In millions of euros           At Déc 31, 2016   At  Dec.31, 2015   Change
Net cash surplus**                       159.6        168.5         -5.3%
Sharholders'equity Group share           561.8        536.0         +4.8%

Current operating profit (excluding dissimilar barters) by activity

In millions of euros                      2016         2015       Change
Music Media and Events                   193.5        197.2(r)     -1.9%
Television                                85.6         83.0        +3.1%
International Activities                  35.5         34.2        +3.8%
Broadcasting                              55.2         63.3       -12.8%
Revenue excluding dissimilar barters     369.8        377.7        -2.1%
Music Media and Events                    32.6         38.0(r)    -14.2%
Television                               (28.6)      (37.1)       +22.9%
International Activities                  11.2         10.6        +5.7%
Broadcasting                              13.0         17.1       -24.0%
Other activities                           0.9          0.3      +200.0%
Current operating profit excluding
dissimilar barters                        29.1         28.9        +0.7%
(r)Restated after aggregation of the "Music Media and Events" and "Shows and
Other Productions" segments into a single operating segment.

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

Fun Radio's large-scale campaign, which had been ongoing since at least
September 2015, impacted negatively on the audience figures for NRJ Group
stations for the whole of 2016, and weighed on the Group's 2016 radio revenue
for all its commercial activities. The Paris Commercial Court(2) and the Paris
Court of Appeal(2) concluded that the messages broadcast through Fun Radio
constitute manipulation of the audience measurement process. 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.

The MME segment posted revenue(1) of EUR193.5 million in 2016, down 1.9%
compared with 2015.

With revenue growth of more than 16%, digital activities continued to make a
marginal contribution to the current operating profit(1) of the MME segment,
considering the strengthening of editorial and technical means provided to this
activity.

The segment's current operating profit(1) therefore stood at EUR32.6 million in
2016 versus EUR38.0 million in 2015 due to a decrease in radio revenue and the
strengthening of support functions.

           TELEVISION: A REDUCTION IN CURRENT OPERATING LOSS(1)

In a highly volatile advertising market, revenue(1) for the Television segment,
driven by higher audience figures both across the entire viewing public and for
all commercial targets, was up 3.1% at EUR85.6 million.

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%(4) in 2016, up from 2.5%(4) in
2015. Overall, the Group had more than 41 million viewers(5) each month, thanks
to two complementary channels with a weekly offering of original magazine
shows, films and a range of unreleased series.

In 2016, the TV segment's current operating loss(1) stood at EUR28.6 million,
an improvement of 22.9% compared with fiscal year 2015, mainly due to higher
audiences, the optimisation of the cost of programmes management and the
decrease in DTT broadcasting expenses.

                          INTERNATIONAL ACTIVITIES

In 2016, revenue(1) for the Group's international activities was EUR35.5
million, up 3.8%.

The 5.7% increase in current operating profit(1) to EUR11.2 million is mainly
due to an improvement in Germany.

                                BROADCASTING

The Broadcasting segment recorded revenue(1) of EUR55.2 million, a decline of
12.8%, due to the early termination of its broadcasting contracts (multiplexes
R5 and R8).

The direct impact of this reduction in activity, which was partly offset by
good cost control, led to a current operating profit(1) for the Broadcasting
segment of EUR13.0 million in 2016, down 24% compared with 2015.

                              ****************

The Board of Directors will propose to the General Shareholders' Meeting on 18
May that no dividend is paid for fiscal year 2016. It will also propose that
the General Shareholders' Meeting authorises a new share buyback programme.

Outlook:

MME: in 2017, the Group will focus on its editorial fundamentals in radio
(programmes, games, events, communication and musical research) to develop the
identity and complementarity of its four brands to further improve proximity
and affinity with its listeners, in particular millennials.

The roll out of the NRJ Play and NRJ Active websites, as well as the use of its
Data Management Platform (DMP) will drive the growth of the Group's digital
activities.

Television: the Group's objectives are to strengthen NRJ 12's fundamentals (an
innovative, different channel, in tune with millennials, entertaining, feel
good and daring) by proposing more attractive content and to continue, with
Chérie 25, with the positive trends observed in recent months. The level of
investments in programmes will be maintained for NRJ 12 and Chérie 25.

Broadcasting: 2017 activity will be impacted by the full-year impact of the
early termination of its broadcasting contracts (multiplexes R5 and R8). The
objective is to gain market share, in particular for FM.

Additional information:

The consolidated accounts have been audited. The audit report on these
financial statements is currently being prepared.

The 2016 Registration Document should be available on the Group's website
www.nrjgroup.fr, by 31 March 2017 at the latest.

Next release: Financial information for the 1st quarter - on May 9, 2017, after
close of trading.

APPENDICES

* EBITDA: Current Operating Profit excluding dissimilar barters transactions
before amortisation and impairment of tangible and intangible assets and before
net change in provisions recorded in the Current Operating Profit but after
current depreciation on current assets. The caption "Net change in provisions"
excludes reversals used which are credited to the same line as that used for
the expenditures incurred.

In millions of euros                                     2016   2015

Current Operating Profit excluding
dissimilar barters transactions                          29.1   28.9
Amortisation and impairment of tangible and
intangible assets, and net change in provisions          23.0   24.6
Change in provision for post-employment
benefits recognised in personnel expenses                 1.4    1.4
EBITDA excluding dissimilar barter transactions *        53.5   54.9

** Net cash surplus: Cash and cash equivalents net of outstanding bank
overdrafts and net of borrowings. Borrowings amounted to 12.7 million as at
December 31, 2016.

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) Excluding dissimilar barters.
(2) 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.
(3)The Media business includes the MME, Television and International Activities
segments.

Sources: Médiametrie-Médiamat, aged 4 years +, Monday to Sunday, 3h-27h.
(4)(NRJ 12 + Chérie 25), Audience share, Day of viewing, Annual change, 2016
vs 2015.
(5)(NRJ 12 + Chérie 25), Monthly coverage 2016.

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

NRJ GROUP's latest news

30/04/2024 17:43

NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2016

Transparency directive : regulatory news

NRJ GROUP's latest news

Other stories