NRJ GROUP (EPA:NRG) - NRJ GROUP - Financial Information Q3 2018

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17/10/2018 17:44

Paris, October 17, 2018 - 5.45 pm
Financial information for the 3rd quarter 2018 - NRJ Group

A good quarter with a 6.2% increase in consolidated revenue(1) driven by all
                               Group activities.

                               3rd quarter 2018
             Consolidated Group revenue(1): EUR89.5 million (+6.2%)

                                9 months 2018
            Consolidated Group revenue(1): EUR282.7 million (+4.6%)

                           3rd quarter              9 months to date
In millions of euros  2018  2017(r)   Change    2018    2017(r)   Change

Radio                 54.5    52.6     +3.6%    166.2    169.0    -1.7%
Television            19.3    18.6     +3.8%     66.8     61.5    +8.6%
Broadcasting          15.7    13.1    +19.8%     49.7     39.8   +24.9%
Revenue excluding
barters               89.5    84.3     +6.2%    282.7    270.3    +4.6%
Revenue on barters     4.2     4.4     -4.5%     12.7     14.3   -11.2%
Revenue               93.7    88.7     +5.6%    295.4    284.6    +3.8%

(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)

In the third quarter of 2018, the Group reported consolidated revenue(1) of
EUR89.5 million; an increase of 6.2% compared to the same period in 2017.
Consolidated revenue(1) for the first 9 months of the 2018 financial year
totalled EUR282.7 million, an increase of 4.6% compared to the same period in
2017.

RADIO

The Radio division recorded a return to growth for the third quarter of 2018
with +3.6%. Thanks to this performance, the Radio division improved its trend
from the start of the year, and its revenue(1) is now only 1.7% down on the
first 9 months of the year compared to the same period in 2017.

After stabilising in the second quarter of 2018, Radio activities in France
(e.g. 'MME') saw a return to growth in their revenue(1) for the third quarter.
In terms of national radio, during this quarter the volume and price effects
were positive, reflecting a reversal in value for the Group's core business.

For the first time in NRJ's history, and for the start of the new 2018/2019
season, NRJ Group has introduced an entertaining and interactive programme for
its listeners for the 5-8pm time slot hosted by 'Cauet et sa bande'.

Driven by the performance of the audio and video formats and the success of the
regional sales house's commercial offers, digital activity continued to grow in
the third quarter of 2018 and recorded an increase of 28.6% in its revenue(1).
NRJ Group is ranked as the number one private group for Internet radio in
France(2) and, moreover, NRJ is the number one radio for e-commerce(3).

International Radio activities are still being affected by 2017's negative base
effect, and by the change in operating mode in Norway which resulted in a
EUR1.4 million loss of revenue(1) in the first 9 months of 2018, but with no
significant impact on the Current Operating Profit(1).

TELEVISION

The TV division's revenue(1) continued to build on its strong momentum with
3.8% growth in the third quarter of 2018 up to EUR19.3 million, following on
from growth in 2017's third quarter. For the first 9 months of the year, the TV
division saw an increase in revenue of 8.6% up to EUR66.8 million,
outperforming the market(4). This growth is the result of all three of the
Group's channels, in particular Chérie 25's excellent commercial
performance.

In the first 9 months of 2018, the combined audience share for both of NRJ
Group's free-to-air channels (NRJ 12 and Chérie 25) was 2.5%(5) for the entire
viewing public, 3.1%(5) for the 25-49 age group target and 3.5%(5) for the
women under 50 responsible for purchases target.

In September, NRJ 12 continued to benefit from efforts to optimise its
programming and its audiences, in particular with a new episode of the daily
reality TV show 'Les vacances des anges 3' broadcasted at Access Prime Time
from 7-8pm. NRJ 12 is the number one DTT channel at access prime time for the
15-24 age group target(6) with an audience share of 10.1%(6). The channel
recorded the greatest year-on-year increase with +19%(7). In September, NRJ 12
also saw the successful launch of the new programme 'Crimes et faits-divers :
la quotidienne' at the 1:40- 2:15pm time slot with a 4+ age group audience
share increase of 0.9 percentage points(8).

In August 2018, Chérie 25 reported an all-time monthly high for the women
under 50 responsible for purchases audience share with 1.4%(9), i.e. a 27%
increase in one year(10). In the third quarter, the channel continued to record
double-digit growth in its revenue(1), thanks to a solid commercial strategy
and clear editorial positioning.

BROADCASTING

In the third quarter, the Broadcasting division's revenue(1) was EUR15.7
million, an increase of 19.8% compared to the same period in 2017, driven by
non-recurring services and solid organic growth for FM broadcasting activity.
In the first 9 months, the Broadcasting division recorded an increase of 24.9%
compared to the same period in 2017.

Next release: Full year 2018 revenue on February 5, 2019 (after market close).

APPENDICES

(i) Implementation of IFRS 15

The Group has implemented IFRS 15 - Revenue from Contracts with Customers - for
the first time, with a 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 EUR9.9 million for the first nine months of 2017 and EUR14.3
  million for 2017.
- The recognition of "similar" barters that had previously been eliminated in
  the amount of EUR11.6 million for the first nine months of 2017 and with a
  total impact on revenue on barters amounting to EUR13.8 million for 2017.

9 months

In millions of euros

                9 months 2017 IFRS 15 incidence IFRS 15 incidence 9 months 2017
                  published    of partnerships     of barters        restated
Revenue excluding
barters              260.4             9.9                             270.3
Music Media and
Events               131.1                                             131.1
television            61.5                                              61.5
International
Activities            28.0             9.9                              37.9
Broadcasting          39.8                                              39.8
Revenue on barters     2.7                               11.6           14.3
Revenue              263.1             9.9               11.6          284.6

12 months

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

Revenue
excluding
barters            367.9            14.3                             382.2
Music Media and
Events             187.2                                             187.2
television          87.3                                              87.3
International
Activities          39.0            14.3                              53.3
Broadcasting        54.4                                              54.4
Revenue on barters   6.4                               13.8           20.2
Revenue            374.3            14.3               13.8          402.4
Current operating
profit/loss
excluding barters   27.3                                              27.3
Current operating
profit/loss
on barters           0.5                               (0.6)          (0.1)
Current operating
profit/loss         27.8                               (0.6)          27.2

(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.

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.
(2) ACPM-OJD, global digital radio broadcasting, august 2018, active listening
sessions +30 seconds, data for France, NRJ Group: 26,441,878 active listening
sessions.
(3) Kantar Media TGI April 2018. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target.
(4) BUMP : Barômetre Unifié du Marché Publicitaire, press release of October
2, 2018 on the advertising market in the first half of 2018 : Change in the TV
advertising market revenue versus 2017 +1.8% in Q1 2018 and +1.6% in H1 2018
compared to a change in revenue for the N RJ GROUP's TV division of +10.8% in
Q1 2018 and +10.7 % in H1 2018.
(5) 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-september 2018.
(6) Médiamétrie, Médiamat, Audience Share "after reallocation" NR12, aged
15-24 years, September 2018, Monday to Friday, 17h-20h, September 2018 versus
September 2017.
(7) Médiamétrie, Médiamat, Audience Share, NR12, evolution on aged 15-24
years in points of the time slot 17h-20h, Monday to Friday, September 2018
versus September 2017: +1.6 Audience Share points.
(8) Médiamétrie, Médiamat, Audience share, live + catch up, NR12, aged 4
years +, September 2018 versus September 2017, Monday-Friday,13h40-14h15,
evolution in points with +0,9 points.
(9) Médiamétrie, Médiamat, Audience share, Day of viewing, Chérie 25, target
specified, august 2018.
(10) Médiamétrie, Médiamat, Audience share, Day of viewing, Chérie 25, target
specified, august 2018 versus august 2017.

About NRJ GROUP

NRJ GROUP is one of France's leading private media groups in the publishing,
production and broadcasting sectors and also mar kets 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 ecosyst em 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 / Cosme Julien-Madoni /
Tel: + 33 1 47 03 68 19 / 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

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NRJ GROUP (EPA:NRG) - NRJ GROUP - Financial Information Q3 2018

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