NRJ GROUP (EPA:NRG) - NRJ GROUP – Correctif – Press release annual results 2017

Transparency directive : regulatory news

20/03/2018 17:48

Paris, March 20, 2018 - 5:45 pm

   Erratum to the Press Release "2017 annual results - NRJ Group" dated
                             March 15, 2018

An editorial error was made in the press release dated March 15, 2018 (English
version only) on the TV revenue in the table Current operating profit
(excluding dissimilar barters) by activity on page 2. Please read a TV division
revenue of EUR87.3 million instead of EUR8.3 million. All the other figures are
correct and remain unchanged.

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, 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 nearly 240 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 15 other countries, with
NRJ/ENERGY, the number one international radio brand, and/or
NOSTALGIE/NOSTALGIA, either directly or through partnerships or 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 63 / 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

Paris, March 15, 2018 - 7:30 pm
Corrected March 20, 2018 - 5:45 pm
2017 annual results - NRJ Group

2017 Group revenue(i) comparable to prior FY, driven by a strong fourth quarter
           Increase in TV audiences on preferred commercial targets
Sustained growth in current operating profit(i) in the International Activities
                          and Broadcasting divisions
             Sharp increase in free cash flow(ii) of EUR34 million
                 Proposed dividend for 2017: EUR0.15 per share

The NRJ Group Board of Directors held on March 15, 2018, and chaired by
Jean-Paul Baudecroux, approved the consolidated and the parent company
financial statements for 2017.

Driven by good momentum in the fourth quarter, NRJ Group earned EUR367.9
million in revenue(i) in 2017, down a slight 0.5% compared to 2016.

In 2017, EBITDA excluding dissimilar barters(iii) totalled EUR50.2 million, a
decline of 6.2%.

Current operating profit(i) stood at EUR27.3 million, down 6.2%.

NRJ Group's current operating margin(iv) was 7.4%.

Operating profit was EUR27.9 million compared with EUR42.8 million a year
earlier.

The 2016 operating profit included EUR13.7 million in non-recurring income
corresponding to the impact, net of expenses, of the compensation received by
the Group after termination of its broadcasting contracts - multiplexes R5 and
R8 - with this item adding EUR9 million to net income after taxes for 2016. In
2017, the Group share of consolidated net profit was EUR20.2 million compared
to EUR33.7 million one year earlier.

At December 31, 2017, in light of the strong growth in free cash flow(ii), the
Group showed a net cash surplus(v) of EUR192.1 million, a sharp increase of
20.4% compared to December 31, 2016. This increase is tied particularly to an
improved WCR that includes inventory reduction and off-balance sheet
commitments in the TV division.

In millions of euros                              2017       2016     Change

Revenue excluding dissimilar barters             367.9      369.8      -0.5%
EBITDA(iii) excluding dissimilar barters          50.2       53.5      -6.2%
Current operating profit excluding
dissimilar barters                                27.3       29.1      -6.2%
Operating profit                                  27.9       42.8     -34.8%
Net profit Group share                            20.2       33.7     -40.1%

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

Net cash surplus(v)                              192.1      159.6     +20.4%
Shareholders'equity Group share                  586.7      561.8      +4.4%

Current operating profit (excluding dissimilar barters) by activity

In millions of euros                              2017       2016     Change

Music Media and Events                           187.2      193.5      -3.3%
Television                                        87.3       85.6      +2.0%
International Activities                          39.0       35.5      +9.9%
Broadcasting                                      54.4       55.2      -1.4%
Revenue excluding dissimilar barters             367.9      369.8      -0.5%
Music Media and Events                            25.8       32.6     -20.9%
Television                                       (28.5)     (28.6)     +0.3%
International Activities                          14.4       11.2     +28.6%
Broadcasting                                      14.9       13.0     +14.6%
Other activities                                   0.7        0.9     -22.2%
Current operating profit excluding
dissimilar barters                                27.3       29.1      -6.2%

                         MUSIC, MEDIA AND EVENTS (MME)

The MME division posted revenue(i) of EUR187.2 million in 2017, down 3.3%
compared with 2016.

In 2017, the Group continued to work on optimising its radio programme
scheduling with the renewal of its key morning shows and the launch of new
programmes. As such, on the strength of its advantages, NRJ Global (the Group's
national sales house) confirmed its position as the number one commercial radio
offering in France, with 11.6 million daily listeners according to audience
figures from Médiamétrie for November-December 2017(1). However, the radio
business posted a 4.0% decline in revenue. In view of the cost structure in
2017, this decline had a noticeable effect on current operating profit(i) for
the division, itself impacted by the EUR1 million fine handed down by the
French audio-visual council (CSA) after the broadcast of a prank call by radio
show host Cauet in December 2016.

Digital activities posted 4.0% growth in revenue(i) in 2017, with +10.7% in the
fourth quarter, driven by audio formats that performed well and the success of
the regional sales house commercial proposals. These activities continued to
make a slight contribution to the division's current operating profit(i).

Current operating profit(i) for the division amounted to EUR25.8 million in
2017 compared to EUR32.6 million in 2016.

     TELEVISION IMPROVED REVENUEi AND STABLE CURRENT OPERATING LOSS(i)

Revenue(i) for the TV division totalled EUR87.3 million, up by 2.0% compared to
2016. This trend was especially strong in the fourth quarter, with revenue
growth of nearly 10%.

In 2017, the TV division's two free-to-air channels (NRJ 12 + Chérie 25) saw
an increase in audiences among the commercial targets favoured by advertisers,
with an audience share of 3.6%(2) among women under 50 responsible for
purchases, a 3%(3) increase over one year, and a 3.3%(2) audience share among
the 25-49 year age group, a 6%(3) increase over one year. Across the entire
viewing public, the cumulative audience share of these two free-to-air channels
was 2.7%(2).

In 2017, the TV division posted a EUR1.6 million increase in operating expenses
due to higher investments in programming in the first half of 2017. The TV
division's current operating loss(i) was stable compared to fiscal year 2016,
at EUR(28.5) million, thanks to increased revenue(i) and lower broadcasting
costs for DTT.

INTERNATIONAL ACTIVITIES VERY GOOD OPERATIONAL PERFORMANCE FOR THE DIVISION

Full year 2017 revenue(i) for the Group's International activities was EUR39.0
million(1), up 9.9%. All of the division's regions posted growth.

Current operating profit(i) for 2017, up 28.6% compared to 2016 at EUR14.4
million, contributed significantly to the Group's results. This growth
primarily reflects a solid performance by Germany, which posted an 11.4%
increase in revenue for 2017. This was largely due to the establishment of a
new sales force compensation model with a favourable backdrop in terms of
marketable audiences.

                     BROADCASTING IMPROVED PROFITABILITY

The Broadcasting division posted revenue(i) of EUR54.4 million, down by 1.4%
from 2016 due to the first-quarter impact of the termination of its
broadcasting contracts - multiplexes R5 and R8. Adjusted for this impact, 2017
revenue(i) increased by 3.8%.

FM broadcasting posted 10% growth thanks to the development of services for
Radio France stations. Around EUR0.4 million of this increase was due to
frequency reallocation services requested by the French National Frequencies
Agency (ANFR).

Current operating profit(i) increased by 14.6% to EUR14.9 million in 2017. This
positive performance benefited from favourable non-recurring items of about
EUR2 million, and reflects improved profitability in FM and DTT broadcasting.

At the General Shareholders' Meeting on May 16, the Board of Directors will
propose the payment of a dividend of EUR0.15 per share for the 2017 fiscal
year. It will also propose that the General Shareholders' Meeting authorises a
new share buyback programme.

Outlook:

MME: The Group intends to boost its activity by building on an optimised sales
organisation in radio and on the advantages of its flagship brand NRJ in
particular. The Group will step up its digital transformation by bringing in
new expertise.

TV: The Group wants to make its NRJ 12 and Chérie 25 channels more attractive
by drawing on the growth potential of Chérie 25, thereby reducing the
operating losses of the TV division in 2018.

International activities: The Group, while consolidating its editorial
fundamentals in radio and continuing to invest in its growth drivers, expects
its current operating profit(i) to normalise in 2018. It is also confident
about the outlook for its International activities.

Broadcasting: In 2018, the Broadcasting division will step up its efforts to
gain new market shares, particularly in FM. The Group is still moving forward
with its strategic reviews and is continuing to look into different options
that would enable towerCast to accelerate its development.

Additional information:

The consolidated and annual accounts have been audited. The audit reports will
be published once the procedures required for the filing of the Registration
Document have been completed.

The 2017 French version of Registration Document should be available on the
Group's website www.nrjgroup.fr, by March 30, 2018 at the latest.

Next release: Financial information for the 1st quarter of 2018 - on May 2,
2018,after market close.

APPENDICES

(i) Excluding dissimilar barters:

In millions of euros                              2017       2016     Change

Revenue excluding dissimilar barters             367.9      369.8      -0.5%
Revenue on dissimilar barters                      6.4        4.1     +56.1%
Revenue including dissimilar barters             374.3      373.9      +0.1%
Current operating profit/loss excluding
dissimilar barters                                27.3       29.1      -6.2%
Current operating profit/loss on dissimilar
barters                                            0.5       (0.2)       na
Current operating profit/loss including
dissimilar barters                                27.8       28.9      -3.8%

na: not applicable

(ii) Free cash flow:

In millions of euros                                         2017     2016

Cash generated from operations before interest and taxes     50.9     70.1
Changes in Working Capital                                   10.4    (17.5)
Income taxes paid / reimbursed                              (12.7)   (34.7)
Net cash flows from operating activities (A)                 48.6     17.9
Net cash flows from investing activities (B)                (14.6)   (18.7)
Free cash flow (A)+(B)                                       34.0     (0.8)

(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                                         2017     2016

Current Operating Profit excluding dissimilar barters
transactions                                                 27.3     29.1
Amortisation and impairment of tangible and intangible
assets, and net change in prov isions                        21.4     23.0
Change in prov ision for post-employment benefits
recognised in personnel expenses                              1.5      1.4
EBITDA(iii) excluding dissimilar barter transactions         50.2     53.5

(iv) Operating margin rate: According to the Group' rules, it corresponds to
the ratio between the current operating profit and revenue. Dissimilar barters
are excluded.

(v) Net cash surplus: Cash and cash equivalents net of outstanding bank
overdrafts and net of borrowings. Borrowings amounted to 7.6 million euros as
at December 31, 2017.

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) Médiamétrie 126 000 Radio, November-December 2017, Monday to Friday,
    5h-24h, aged 13 years +, NRJ GROUP (NRJ Global) AC: 11,568,000 listeners.
(2) Médiamétrie, Médiamat, Audience share, Day of viewing, NRJ GROUP TV
    division = aggregate NRJ 12 + Chérie 25, aged 4 years + or targets
    specified, 3h-27h, Monday to Sunday, 2017.
(3) Médiamétrie, Médiamat, Audience share, Day of viewing, NRJ GROUP TV
    division = aggregate NRJ 12 + Chérie 25, aged 4 years + or targets
    specified, 3h-27h, Monday to Sunday, annual change, 2017 versus 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, 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 nearly 240 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 15 other countries, with
NRJ/ENERGY, the number one international radio brand, and/or
NOSTALGIE/NOSTALGIA, either directly or through partnerships or 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 63 / 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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