NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release - 2018 revenue

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05/02/2019 17:45

Paris, February 5, 2019 - 5.45 pm
2018 revenue - NRJ Group

                     Consolidated revenue(1)up 2.6% in 2018

                    despite headwinds in the fourth quarter

4th quarter 2018
Consolidated Group revenue(1): EUR109.6 million (-2.1%)

12 months 2018
Consolidated Group revenue(1): EUR392.3 million (+2.6%)

                          4th quarter          12 months to date
In millions of euros  2018  2017(r)  Change   2018  2017(r)  Change

Radio                 68.8   71.5     -3.8%   235.0  240.5 *  -2.3%
Television            24.0   25.8     -7.0%    90.8   87.3    +4.0%
Broadcasting          16.8   14.6    +15.1%    66.5   54.4   +22.2%
Revenue excluding
barters              109.6  111.9     -2.1%   392.3  382.2    +2.6%
Revenue on barters     6.0    5.9     +1.7%    18.7   20.2    -7.4%
Revenue              115.6  117.8     -1.9%   411.0  402.4    +2.1%

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

In the fourth quarter of 2018, the Group posted consolidated revenue(1) of
EUR109.6 million; a decrease of 2.1% compared with the same period in 2017.
This reduction was due to two adverse factors: the "yellow vest movements" in
France and the change in radio operating mode in Norway**. Without such
headwinds, the Group would have seen a slight increase in revenue(1) for the
fourth quarter of 2018.

Consolidated revenue(1) for 2018 totalled EUR392.3 million, a 2.6% increase
compared to 2017.

                                 RADIO

As the fourth quarter of 2018 was affected by the "yellow vest movements" and
the change in operating mode in Norway, the NRJ Group's Radio division
recorded EUR68.8 million in revenue(1) compared with EUR71.5 million posted
for the same period in 2017. Discounting the negative effects of these two
external factors, which amount to close to EUR3 million, the total revenue(1)
for the Radio division in the fourth quarter of 2018 would have been a slight
year-on-year increase.

Revenue in 2018 for the Radio division dropped 2.3% to EUR235 million(1). If
the effects of the change to the operating mode in Norway, which amount to
EUR2.9 million, and the "yellow vest movements" were negated, revenue(1) from
the Radio division would have been relatively stable compared with 2017.

In 2018, Radio activities in France capitalised on their resources, namely
their flagship brand NRJ which cemented its dominant positions (France's
number 1 radio among the under-65s(2) and the number 1 morning show in France
for listeners under 65(3)). NRJ Group continued to innovate by developing, for
the first time in NRJ's history, a 5-8pm time-slot for the 2018/2019 season,
an
entertaining and interactive show hosted by 'Cauet et sa bande', that, thanks
to its 1.5 million daily listeners, is positioned as France's favourite show
for the under-60 age group.(4) Radio activities in France saw excellent
performance in 2018 from the Nostalgie radio station which received the top
prize for national music station of the year at the 2019 European Radio &
Digital Audio Show.(5) Audience numbers for Nostalgie surged by 12% over the
year(6) to 3.3 million daily listeners.(7)

**With no significant impact on the Current Operating Profit(1).

Digital activities continued their upward trend in the fourth quarter of 2018,
recording an increase of 3.2% in revenue.(1) Over the 2018 financial year,
digital activities grew by 10.6% thanks to the performance of audio and video
formats as well as success from the commercial offers of the regional sales
house. NRJ Group is ranked as the number one private group for Internet radio
in France(8) and, moreover, NRJ is the number one radio in France for e-
commerce.(9) 54% of people who own a smart speaker listen to NRJ.(10)

                             TELEVISION

In the fourth quarter of 2018, facing a high comparison basis and in an
exceptional context linked to the "yellow vest movement", the TV division
earned EUR24 million in revenue(1),(1) a year-on-year drop of 7% . However,
for 2018 overall, the TV division recorded 4% revenue(1) growth at
EUR90.8 million, outperforming the market.(11) This growth is double that
recorded in the previous financial year and is largely a result of the
excellent commercial performance of Chérie 25 and NRJ Hits, both of which saw
double-digit growth in revenue.(1)

For 2018, the combined audience share for both of NRJ Group's free-to-air
channels (NRJ 12 and Chérie 25) was 2.5%(12) for the entire viewing public,
3.0%(12) for the 25-49 age group target and 3.4%(12) among the women under 50
responsible for purchases target.

In 2018, NRJ 12 benefited from efforts to optimise its programming and its
audiences, notably with a new episode of the daily reality TV shows ('Les Anges
10' followed by 'Les Vacances des Anges 3') broadcasted at Access Prime Time
from 7-8pm. On this high-priority strategic time-slot, the channel expanded its
audience share to 1.9% for the 4+ age group audience share, an increase of 0.6
percentage points.(13) Moreover, NRJ 12 is the number one DTT channel at Access
Prime Time among the 15-24 age group target(14) with an audience share of
7.6%.(14) In September NRJ 12 also successfully launched the programme 'Crimes
et faits-divers : la quotidienne' in the 1:40- 2:30pm time-slot. This new show,
hosted live by Jean-Marc Morandini, quickly found its audience, increasing its
average audience share of the 4+ age group by 1.1 percentage points to reach
2.1%.(15)

In 2018, Chérie 25 increased its prime-time 4+ age group audience share by 0.1
percentage points(16) to 1.4%.(17) Since the new season, Chérie 25 has also
established various new fiction series, such as 'Médium', during Access Prime
Time with audience gains among its primary targets (+0.2 percentage points in
the 4+ age group target,(18) +0.3 percentage points in the 25-49 age group
target(18) and +0.7 percentage points among the women under 50 responsible for
purchases age group target.(18)).

Remaining true to its '100% Music, 100% Hits' motto, NRJ Hits, the Group's
third channel, capitalised on its position as the top cable-satellite-ADSL
music channel(19) with over 4.1 million viewers each month.(20)

                                 BROADCASTING

The Broadcasting division reported revenue(1) of EUR16.8 million for the
fourth quarter of 2018, a year-on-year gain of 15.1%.

In 2018, annual revenue(1) for the Broadcasting division totalled EUR66.5
million, a surge of 22.2% compared with 2017. Excluding non-recurring items,
the revenue(1) for the 2018 financial year recorded 7% organic growth as a
result of improvements in FM broadcasting activities and, to a lesser extent,
DTT broadcasting activity.

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

Next release: 2018 annual results on March 13, 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 EUR14.3 million for 2017.
- The recognition of "similar" barters that had previously been eliminated,
with a total impact on revenue on barters amounting to EUR13.8 million for
2017.

12 months

In millions of euros  2017      IFRS 15 incidence IFRS 15 incidence  2017
                     published   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) Consolidated revenue excluding barters, in the process of being audited,
and according to IFRS standards.
(2) Médiamétrie, 126 000 radio, NRJ, Cumulative 2018, Monday-Friday,5h-24h,
targets specified, AC.
(3) Médiamétrie, 126 000 radio, NRJ, Cumulative 2018, Monday-Friday, 6h-9h30,
targets specified, AC.
(4) Médiamétrie, 126 000 radio, NRJ, Cumulative 2018, Monday-Friday,17h-20h,
targets specified, AC.
(5) Award ceremony on January 24, 2019.
(6) Médiamétrie, 126 000 radio, NOSTALGIE, Change in Audience Share in %,
Cumulative, 2018 versus 2017, Monday-Friday, 05h-24h, aged 13 years +, AC.
(7) Médiamétrie, 126 000 radio, NOSTALGIE, Cumulative 2018, Monday-Friday,
05h-24h, aged 13 years +, AC.
(8) ACPM-OJD, global digital radio broadcasting, December 2018, active
listening sessions +30 seconds, data for France, NRJ Group: 29,409,087 active
listening sessions.
(9) Kantar Media TGI October 2018. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target.
(10) Médiamétrie, Smart speakers survey, November 2018, Internet users aged
15+.
(11) BUMP : Baromètre Unifié du Marché Publicitaire, press release of
November 22, 2018 on the advertising market in the first nine months of 2018 :
Change in the TV advertising market revenue versus 2017 +1.8% in Q1 2018,
+1.6% in H1 2018 and +2.3 % in the first 9 months of 2018 compared to a change
in revenue for the NRJ GROUP's TV division of +10.8% in Q1 2018, +10.7% in
H1 2018 and +8.6% fo the first 9 months of 2018 .
(12) 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, 2018.
(13) Médiamétrie-Médiamat, Audience Share "after reallocation", NR12, aged 4
years +, 19h-20h, Monday-Friday, 2018 Médiamat (excluding summer) versus 2017
Médiamat (exluding summer).
(14) Médiamétrie, Médiamat, NRJ 12, Audience Share "after reallocation", to
date , aged 15-24 years, 2018 Médiamat (excluding summer), Monday-
Friday,17h00-20h00.
(15) Médiamétrie, Médiamat, NRJ 12, Audience share, live + catch up, NR12,
aged 4 years +, September-December 2018 versus September- December 2017,
Monday-Friday, 13h40-14h30, +1.1 percentage points.
(16) Médiamétrie, Médiamat, Chérie 25, Audience share, Day of viewing, aged
4 years +, 21h00-22h30, Monday-Sunday, annual change, 2018 versus 2017,
percentage points.
(17) Médiamétrie, Médiamat, Chérie 25, Audience share, Day of viewing, aged
4 years +,21h00-22h30, Monday-Sunday, 2018.
(18) Médiamétrie, Médiamat, Chérie 25, Audience share, Day of viewing, aged
4 years + and targets specified, 18h00 -21h00, Monday to Sunday,
September-December 2018 versus September-December 2017, evolution of the
Audience Share in points.
(19) Médiamétrie Médiamat'Thématik, consolidated audience wave 35 (January
2018- June 2018), Monday to Sunday, 3h-27h, ranking TME aged 4 years +.
(20) Médiamétrie Médiamat'Thématik, consolidated audience wave 35 (January
2018- June 2018), Monday to Sunday,3h-27h, 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 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 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 | 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 - Press release - 2018 revenue

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