NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release Half-Year Results 2017

Transparency directive : regulatory news

26/07/2017 17:51

Paris, July 26, 2017 - 5.45 pm
2017 half-year results - NRJ Group

          Good resistance of the radio business in a difficult market
     Sustained growth in current operating profiti in the Broadcasting and
                            International divisions
             All-time record audience in June for the TV division

The NRJ Group Board of Directors, held on July 26, 2017, approved the accounts
for the first semester of 2017.

During the first six months of 2017, NRJ Group generated revenue(i) of EUR179.4
million, slightly down by 1.8% compared to the same period last year. Revenue
for Media activities(ii) was fairly stable (-0.5%) compared to the first
semester of 2016, supported by international business. The Broadcasting
division posted a decline due to the termination of its broadcasting contracts
(multiplexes R5 and R8).

Current operating profiti, of EUR8.4 million, performed well, only slightly
down by EUR1.4 million, thanks to efficient cost management and in a context of
further investment in the TV division. EBITDA(iii) of EUR19.7 million followed
a similar trend to current operating profiti.

Operating profit was EUR8.3 million. As a reminder, in the first half of 2016,
operating profit included the impact, net of expenses, of the EUR14.3 million
compensation paid to towerCast by the ANFR, related to the transfer of the 700
MHz band to mobile telephone operators.

Net profit Group share stood at EUR6.1 million.

As of June 30, 2017, the Group posted a net cash surplus(iiii) of EUR171.3
million, up nearly EUR12 million from December 31, 2016.

In millions of euros                          HY 2017   HY 2016   Change

Revenue excluding dissimilar barters           179.4     182.6     -1.8%
EBITDA(iii) excluding dissimilar barters        19.7      22.5    -12.4%
Current operating profit excluding dissimilar
barters                                          8.4       9.8    -14.3%
Operating profit                                 8.3      24.3    -65.8%
Net profit Group share                           6.1      16.2    -62.3%

                                                As at     As at
In millions of euros                           June 30,   Dec 31,
                                                 2017      2016   Change

Net cash surplus(iiii)                         171.3     159.6     +7.3%
Shareholders'equity Group share                567.9     561.8     +1.1%

Revenue and current operating profit (excluding dissimilar barters) by activity

In millions of euros                          HY 2017   HY 2016    Change

Music Media and Events                           90.8      92.5     -1.8%
Television                                       42.9      43.7     -1.8%
International Activities                         19.0      17.3     +9.8%
Broadcasting                                     26.7      29.1     -8.2%
Revenue excluding dissimilar barters            179.4     182.6     -1.8%
Music Media and Events                           11.3      12.0     -5.8%
Television                                      (18.2)    (14.5)   -25.5%
International Activities                          7.1       5.6    +26.8%
Broadcasting                                      8.1       6.2    +30.6%
Other activities                                  0.1       0.5      na
Current operating profit excluding
dissimilar barters                                8.4       9.8    -14.3%

na: not applicable

                         MUSIC, MEDIA AND EVENTS (MME)
                     RADIO REVENUE OUTPERFORMED THE MARKET

The MME division posted a slight revenue(i) decrease of 1.8%, which came to
EUR90.8 million.

Given the consequences of the Fun Radio incident and its significant residual
effects, which remain strong enough to force Médiamétrie to reassess each
wave of the "126 000 Radio" study since November 2015, and has continued to
impact audience figures for the first six months of 2017, the radio business
posted a 2.5% decrease in the first semester of 2017 in a market whose decline
was more significant. The commercial activity of the Group's local radio
performed well, with 1.3% growth.

The digital activities' revenue(i) increased by 6.1% compared to the first
semester 2016. The Group continues to develop its digital activities by
investing in powerful tools, particularly by enhancing NRJ Play, its digital
hub.

The MME division's current operating profiti stood at EUR11.3 million, down
5.8% compared to the same period last year, implying an operating margin
rate(iiiii) of 12.4%, thanks to efficient operating costs control.

                                  TELEVISION
                             INCREASING AUDIENCE

In an advertising market that remains competitive, the Group's TV division
revenue(i) declined by 1.8% to EUR42.9 million in the first semester of 2017.

In the first six months of 2017, Chérie 25 continued its editorial strategy
and kept increasing its audience in the entire viewing public, particularly in
its women responsible for purchases target. Chérie 25 therefore achieved a
1.1%(1) audience share in the first six months of 2017, an increase of 0.2
p.p(2) compared to the first six months of 2016, by keeping its promise of "a
film every night", and through its iconic daily programme: "C'est mon Choix".

NRJ 12 has proven that it is rebuilding its market share, with steady audience
growth month on month since January. In June, NRJ 12 bolstered its position as
the leading after-school channel in France among the 15-24 age commercial
target, with an audience share of 18.6%3, and is the leader in after-school
DTT, with a 3.6%(3) share of the entire viewing public. Thanks to its solid
audience base and its ambitious strategy for "after school" and "access prime
time", the channel has strong expectations going into the 2017 upcoming season.

For 10 years, NRJ Hits has offered the most famous hits each day, and has
confirmed its position as the top cable-satellite-ADSL music channel(4) in the
first semester of 2017, with 12%(5) audience growth and over 4.7 million
viewers each month(6).

The TV division's current operating profiti stood at EUR(18.2) million, down
EUR3.7 million compared to the first semester of 2016. This decline is mainly
due to investment in programming, which rose by about EUR4 million. With this
substantial effort, and an all-time record audience for the TV division with
3.1%(7) of the audience share aged 4+ years in June 2017, the TV division is
laying the groundwork for success in the 2017 upcoming season and year-end
period.

                         INTERNATIONAL ACTIVITIES
                DEVELOPMENT AND CONTINUED GOOD PERFORMANCE

In the first semester of 2017, the Group's international activities posted
revenue(i) growth of 9.8% to EUR19 million, driven by Germany, Austria, and the
contributions of newly granted licences, particularly in Egypt, Georgia, and
Morocco.

As a result, the current operating profit(i) of the International Activities
division grew 26.8% to EUR7.1 million.

The Group intends to continue its international development in the second half
of 2017, particularly through the granting of new brand licences.

                               BROADCASTING
                FINAL EFFECTS OF THE 700 MHz BAND TRANSFER

During the first semester of 2017, the Broadcasting division recorded a
revenue(i) of EUR26.7 million, down 8.2% compared to the first semester of
2016. This decrease is attributable to the termination of its broadcasting
contracts - multiplexes R5 and R8 - effective April 5, 2016. Adjusted for this
impact, revenue(i) grew 1.5%, driven by FM broadcasting activities.

In a competitive environment, the current operating profiti generated by the
division rose by EUR1.9 million to EUR8.1 million. Besides efficient control of
operating costs, towerCast has benefited in the first six months of the year
from favourable non-recurring items of about EUR2 million.

Next release: Third quarter 2017 financial information on November 7, 2017,
after market close.

Additional information:

A limited review has been carried out on the condensed interim consolidated
financial statements. The Statutory Auditors' report will be issued with
unqualified opinion once all formalities required to file the half-year
financial report have been completed.

The French version of the 2017 half-year financial report will be available on
the Group's website www.nrjgroup.fr by July 27, 2017 at the latest.

APPENDICES

(i) Excluding dissimilar barters :

In millions of euros                          HY 2017    HY 2016     Change

Revenue excluding dissimilar barters            179.4      182.6      -1.8%
Revenue on dissimilar barters                     1.7        2.0     -15.0%
Revenue including dissimilar barters            181.1      184.6      -1.9%
Current operating profit/loss excluding
dissimilar barters                                8.4        9.8     -14.3%
Current operating profit/loss on
dissimilar barters                               (0.1)       0.2       na
Current operating profit/loss including
dissimilar barters                                8.3       10.0     -17.0%

na: not applicable

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

(iii) 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                                     HY 2017   HY 2016

Current Operating Profit excluding dissimilar barters
transactions                                                 8.4       9.8
Amortisation and impairment of tangible and intangible
assets, and net change in provisions                        10.5      12.0
Change in provision for post-employment benefits
recognised in personnel expenses                             0.8       0.7
EBITDA(iii) excluding dissimilar barter transactions        19.7      22.5

(iiii) Net cash surplus: Cash and cash equivalents net of outstanding bank
overdrafts and net of borrowings. Borrowings amounted to 10.0 million euros as
at June 30, 2017.

(iiiii) Operating margin rate : According to the Group "rules, it corresponds
to the ratio between the Current Operating Profit before elimination of
intergroup transactions and Revenue after elimination of intergroup
transactions. Dissimilar barters are excluded.

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) Médiametrie,Médiamat, Audience share, Day of viewing, CHERIE 25, S1 2017,
    3h-27h, Monday to Sunday,aged 4 years +.
(2) Médiametrie,Médiamat, Audience share, Day of viewing, CHERIE 25, S1 2017
    vs S1 2016, 3h-27h, Monday to Sunday,aged 4 years +.
(3) Médiametrie,Médiamat, Audience share, Day of viewing, NRJ 12, Juin 2017,
    16h30-19h15, Monday to Friday,PDA aged 15-24 years and aged 4 years +.
(4) Médiametrie, Médiamat'Thematik, consolidated audience, wave 33 (January
    2, 2017- June 18, 2017), 3h-27h, Monday to Sunday - Ranking TME.
(5) Médiametrie, Médiamat'Thematik, consolidated audience, wave 33 (January
    2, 2017- June 18, 2017), 3h-27h, Monday to Sunday - Increase of TME between
    wave 33 et and wave 32.
(6) Médiametrie, Médiamat'Thematik, consolidated audience, wave 33 (January
    2, 2017- June 18, 2017), 3h-27h, Monday to Sunday - Coverage 4 weeks
    viewing threshold 10 consecutive seconds.
(7) Médiametrie, Médiamat, Audience share, Day of viewing, (NRJ 12 + CHERIE
    25), June 2017, 3h-27h, Monday to Sunday, aged 4 years +.

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 paid 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
private Internet radio 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 14 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: FR0000121691 ; Reuters: NRG-FR ; Bloomberg: NRG FP.

                    Analyst and Investor Information
NRJ GROUP - Investor Relations: 46-50 avenue Théophile Gautier 75016 Paris -
                            www.nrjgroup.fr
       FTI Consulting - Arnaud de Cheffontaines / Marina Louvard /
      Tel: + 33 1 47 03 68 10 / e-mail: nrjgroup@fticonsulting.com

    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 Half-Year Results 2017

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