NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release Half-Year Results 2018

Transparency directive : regulatory news

26/07/2018 17:45

Paris, July 26, 2018 - 5.45pm
2018 half-year results - NRJ Group

           Strong first half with consolidated revenue(1) up 3.9%
Significant increase of current operating profit(1), driven by the TV division,
                           with revenue(1) up 10.7%

The Board of Directors of NRJ Group met on July 26, 2018 and approved the
half-year financial statements for 2018.

During the period, NRJ Group reported revenue(1) of EUR193.2 million, up 3.9%
compared to the same period of 2017. Revenue(1) for the Radio division was down
4.0% compared to the first half of 2017, while the TV division posted growth of
10.7% and the Broadcasting division continued to perform well, with growth of
27.3%.

Current operating profit(1) reported a good performance, increasing by EUR8.6
million to EUR17.0 million, mainly thanks to efficient cost management at the
TV division. EBITDAiii  jumped 40.1 % to EUR27.6 million. Operating profit
totalled EUR17.0 million.

Net profit Group share was EUR11.3 million.

As of June 30, 2018, the Group had a net cash surplus(iv) of EUR201.5 million,
up nearly EUR10 million from December 31, 2017. This 4.9% increase is due to
free cash flow of EUR21.6 million, driven by the growth in current operating
profit(1), and takes into account the payment of EUR11.6 million in dividends
on June 7, 2018.

     In millions of euros           HY 2018    HY 2017(r)      Change

Revenue excluding barters            193.2       186.0          +3.9%
EBITDA(iii) excluding barters         27.6        19.7         +40.1%
Current operating profit
excluding barters                     17.0         8.4        +102.4%
Operating profit                      17.0         8.2        +107.3%
Net profit Group share                11.3         6.1         +85.2%

In millions of euros     As at June 30, 2018    As at Dec 31, 2017(r)
Change

Net cash surplus(iv)               201.5         192.1                  +4.9%

Shareholders'equity
Group share                        586.7         587.6                  -0.2%

(r) Data restated after the application of IFRS 15, backdated to January 1,
2017 (appendice (i))

Revenue and current operating profit (excluding barters) by activity

     In millions of euros            HY 2018            HY 2017 (r)     Change

Radio                                 111.7               116.4(2)      -4.0%
Television                             47.5                42.9        +10.7%
Broadcasting                           34.0                26.7        +27.3%
Revenue excluding barters             193.2               186.0         +3.9%
Radio                                  14.6                18.4        -20.7%
Television                             (8.8)              (18.2)       +51.6%
Broadcasting                           11.2                 8.1        +38.3%
Other activities                        0.0                 0.1          N.A.
Current operating profit
excluding barters                      17.0                 8.4       +102.4%

(r) Data restated after the application of IFRS 15, backdated to January 1,
2017 (appendice (i))
(2) Restated after the combination of the "Music Media and Events" and
"International Activities" segments to form a new operating segment, "Radio"
(appendice (ii))

RADIO

The Radio division posted revenue(1) of EUR111.7 million, a decrease of 4.0%.

After recording a decline in the first quarter of 2018, revenue(1) from Radio
activities in France (formerly the "Music, Media and Events" division)
stabilised in the second quarter.

According to the latest audience figures from Médiamétrie (April-June 2018),
NRJ Global is the leading sales house in the French radio market for the
under-50 age group(3), and more than 11.3 million(4) people listen to the
Group's radio stations every day. NRJ Group's audience share among the 13+ age
group was 14.4%(5) during the period (down 0.1 percentage point year-on-year
(6) and up 0.5 percentage point compared to the previous recorded figures(6)).
Among the 25-49 year age group, NRJ Group received the largest number of daily
listeners, with nearly 4.9 million listeners(7), representing an audience share
of 17.2%(5).

NRJ confirmed its leadership as the number one radio station in France for the
under-65 age group(8) and "Manu dans le 6/9" was also the number one morning
show in France for those under 65(8). Nostalgie, the second most listened-to
music radio station(9), had its best season-end in nine years(10) and Rire &
Chansons, the radio station with the most male listeners in France(11) produced
its best ever performance with 398,000 new daily listeners acquired over a
year(12), the strongest growth of all the radio stations(12).

Digital activities continued to grow in the first half of 2018 (+7.7%). With
the emergence of personal assistants and smart speakers, and the growing demand
for audio content resulting from these technological innovations, the Group has
substantially expanded its offering, with new podcasts in Radio, and has made
NRJ available on Amazon Echo and HomePod since their launch in France in June
2018. NRJ is the leading internet radio brand in France during the first half
of 2018(13) and the NRJ Group is the leading private group in France in digital
radio listening(13).

Revenue(1) from international radio activities was adversely affected by the
change in operating mode in Norway, which led to a EUR0.9m drop in revenue(1)
in the first half of 2018, with no significant impact on current operating
profit(1). Excluding Norway, revenue(1) from international radio activities
recorded growth during the period compared with the first half of 2016, with an
unfavourable base effect in 2017.

Current operating profit(1) for the Radio division was EUR14.6 million, down
20.7% compared to the first half of 2017. The drop in revenue(1) for the Radio
division impacts the current operating profit(1). Efforts were made with regard
to commercial and technical resources, in France, in the first half of 2018.

According to Médiamétrie's Cross Médias study, more than 45 million French
people are entertained each month by our media: Internet, radio and
television(14).

                                 TELEVISION

Revenue(1) for the TV division was EUR47.5 million, up 10.7% compared to the
first half of 2017. The TV division maintained the positive trend that began in
the fourth quarter of 2017, with growth of 10.8% in the first quarter of 2018
and 10.7% in the second quarter. All three Group channels contributed to this
growth, which was mainly due to the excellent commercial performance of Chérie
25.

In the first half of 2018, cumulative audience share for NRJ Group's
free-to-air channels (NRJ 12 + Chérie 25) was 2.6%(15) across the entire
viewing public, while audience share was 3.2%(15) among the 25-49 age group and
3.6%(15) among women under 50 responsible for purchases. These audience shares
all showed growth in the second quarter 2018 compared to the first quarter of
2018(16).

NRJ 12 posted audience figures in the 7 p.m. to 8 p.m. time slot of 3.0%(17)
among the 4+ age group, 5.3%(17) among the 25-49 age group and 6.9%(17) among
women under 50 responsible for purchases in the second quarter of 2018. These
audience figures display increases of 1.2 percentage point(18), 2.1 percentage
points(18) and 3.2 percentage points(18), respectively compared to the second
quarter of 2017.

Chérie 25 posted double-digit revenue growth(1). Thanks to a solid commercial
strategy, including share of sold advertising inventory, and clear editorial
positioning, the channel's advertising performance improved in the first half
of 2018.

According to the latest Médiamat'Thématik figures, NRJ Hits confirmed its
uncontested position as the top music channel on cable, satellite and ADSL(19),
105% ahead of its closest competitor(20). The channel, which offers daily
programming of greatest hits, has more than 4.1 million viewers every
month(21).

Driven by solid growth in commercial activity and cost efficiencies of close to
EUR5.0 million, the TV division posted current operating profit(1) of EUR(8.8)
million, a significant improvement of EUR9.4 million compared to the first half
of 2017. The TV division continues to pursue a targeted investment strategy.

                                 BROADCASTING

In the first half of 2018, revenue(1) for the Broadcasting division increased
by 27.3% compared to the first half of 2017 to
EUR34.0 million. This increase is notably attributable to solid organic growth
of 20% for FM broadcasting.

Current operating profit(1) for the Broadcasting division was EUR11.2 million,
an increase of EUR3.1 million compared to the first half of 2018.

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

Next release: Third quarter 2018 financial information: October 17, 2018 (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 procedures required to file the half-year
financial report have been completed.

The French version of the 2018 half-year financial report will be available on
the Group's website www.nrjgroup.fr by July 27, 2018 at the latest.

APPENDICES

(i) Implementation of IFRS 15

The Group has implemented IFRS 15 - Revenue from Contracts with Customers - for
the first time, opting for full retrospective application, thereby requiring
the restatement of comparative information.

This standard does not have a significant impact on the Group's results. Its
main impacts are as follows:
-    The recognition of earnings from partnerships in the Nordic region
(Sweden, Norway and Finland) under revenue instead of other income from
activities in the amount of EUR6.6 million for H1 2017.
- The recognition of "similar" barters that had previously been eliminated in
the amount of EUR8.2 million for H1 2017.

In millions of euros   H1 2017   IFRS 15 incidence  IFRS 15 incidence  H1 2017
                       published  of partnerships  of similar barters  restated

Revenue excluding
barters                   179.4            6.6                           186.0
Music Media and
Events                     90.8                                           90.8
television                 42.9                                           42.9
International Activities   19.0            6.6                            25.6
Broadcasting               26.7                                           26.7
Barters                     1.7 *                          8.2             9.9
Revenue including
barters                   181.1            6.6             8.2           195.9
Current operating
profit/loss excluding
barters                     8.4                                            8.4
Current operating
profit/loss on barters     (0.1) *                        (0.1)           (0.2)
Current operating
profit/loss                 8.3                           (0.1)            8.2

* Dissimilar barters

(ii) Change to segment reporting

NRJ Group modified its divisional structure, resulting in changes to segment
reporting. Specifically, it created the Radio Division, encompassing Music,
Media and Events (MME) and International Activities, which have similar
business profiles. The Television, Broadcasting and Other Activities divisions
remain unchanged.

The Group now disclose revenue (excluding barters) and current operating profit
(excluding barters) for each of the four following divisions:

- Radio
- Television
- Broadcasting
- Other Activities

Pursuant to IFRS 8 - Operating Segments, 2017 data for each of the divisions
presented in the above disclosures has been restated to reflect the new
divisional structure.

iii EBITDA: Current Operating Profit excluding 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 2018    HY 2017(r)

Current Operating
Profit excluding
barters transactions                       17.0         8.4
Amortisation and
impairment of
tangible and
intangible assets,
and net change
in provisions                              10.0         10.5
Change in provision
for post-employment
benefits recognised
in personnel expenses                       0.6          0.8
EBITDA(iii) excluding
barter transactions                        27.6         19.7

(iv) Net cash surplus: cash and cash equivalents net of outstanding bank
overdrafts and net of borrowings. Borrowings amounted to EUR5.2 million as at
June 30, 2018.

(v) Excluding barters:

In millions of euros                  HY 2018       HY 2017(r)     Change

Revenue excluding barters              193.2          186.0         +3.9%
Revenue on barters                       8.5            9.9        -14.1%
Revenue                                201.7          195.9         +3.0%
Current operating profit/loss
excluding barters                       17.0            8.4       +102.4%
Current operating profit/loss
on barters                               0.0           (0.2)         N.A.
Current operating profit/loss           17.0            8.2       +107.3%

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 barters: (appendicev).
(2) Restated after the combination of the "Music Media and Events" and
    "International Activities" segments to form a new operating segment,
    "Radio" (appendice ii).
(3) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
    13 years + or targets specified, AC, QHM and Audience Share.
(4) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
    13 years +, AC.
(5) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h,
    Audience Share aged13 years + or targets specified.
(6) Médiamétrie, 126 000 radio, Monday-Friday, 5h-24h, Audience Share, aged13
    years + or targets specified, change April-June 2018 versus April-June
    2017 and January-March 2018.
(7) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
    25-49 years, AC, NRJ Group (NRJ Global).
(8) Médiamétrie, 126 000 radio, January-March 2018, Monday-Friday, 5h-24 and
    6h-9h30, aged13 years + or targets specified, AC,
(9) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
    13 years +, QHM and Audience Share.
(10) Médiamétrie, 126 000 radio, April-June 2018, Mon-Fri, 5h-24h, aged 13
     years +, best Audience Share on a wave April-June since April-June 2009.
(11) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
     13 years +, QHM by structure,
(12) Médiamétrie, 126 000 radio, April-June 2018, Monday-Friday, 5h-24h, aged
     13 years +, change of the AC in thousands Q2 2018 vers Q 2017.
(13) ACPM-OJD, global digital radio broadcasting, cumulative January-June 2018,
     active listening sessions +30 seconds, data for France, NRJ brand:
     110,872,659 active listening sessions and NRJ Group: 207,908,473 active
     listening sessions.
(14) 2017 Cross Media study, reproduction prohibited, all rights reserved by
     Affimétrie, ACPM and Médiamétrie. March 2017 data in television and
     Internet fixed, mobile, tablet. Radio : 126 000 Jan-March 2017. Aged 15
     years +.
(15) Médiamétrie-Médiamat, Audience share, Day of viewing, NRJ GROUP TV
     Division = aggregate NRJ 12 + Chérie 25, aged 4 years + or targets
     specified, 03h-27h, Monday to Sunday, January-June 2018.
(16) Médiamétrie-Médiamat, Audience share, Day of viewing, NRJ GROUP TV
     Division = aggregate NRJ 12 + Chérie 25, aged 4 years + or targets
     specified, 03h-27h, Monday to Sunday, April-June 2018 vs January-March
     2018 : +0.3 point on aged 4 years +, +0.3 point on aged 25-49 years and
     +0.6 point on women under 50 responsible for purchases.
(17) Médiamétrie-Médiamat, Audience Share "after reallocation" NR12, aged 4
     years + or targets specified, 19h-20h, Monday to Friday, April-June 2018.
(18) Médiamétrie-Médiamat, Audience Share "after reallocation" NR12, aged 4
     years + or targets specified, 19h-20h, Mon- Fri, Q2 2018 vs Q2 2017.
(19) Médiametrie, Médiamat'Thematik, consolidated audience, wave 35 (January
     2018-June 2018), 3h-27h, Mon-Sun, ranking TME aged 4 years +.
(20) Médiametrie, Médiamat'Thematik, consolidated audience, wave 35 (January
     2018-June 2018), 3h-27h, Monday to Sunday, advance in % of TCE.
(21) Médiametrie, Médiamat'Thematik, consolidated audience, wave 35 (January
     2018-June 2018), 3h-27h, Monday to Sunday, 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, 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 ori ginal 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 16 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 781,076.21 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 Half-Year Results 2018

Transparency directive : regulatory news

NRJ GROUP's latest news

Other stories