NRJ GROUP (EPA:NRG) - NRJ GROUP - FInancial information Q3 2019

Transparency directive : regulatory news

06/11/2019 17:46

Paris, November 6, 2019 - 5.45pm
Financial information for the 3rd quarter of 2019 - NRJ Group

       - Good quarter for the Radio and Broadcasting divisions
       - TV division's revenue(1) disadvantaged by a weak market

                             3rd quarter              9 months to date

In millions of euros    2019    2018    Change    2019     2018   Change

Radio                   55.1    54.5    +1.1%    167.6    166.2    +0.8%
Television              16.4    19.3   -15.0%     61.7     66.8    -7.6%
Broadcasting            14.9    15.7    -5.1%     49.7     49.7    +0.0%

Revenue excluding
barters                 86.4    89.5    -3.5%    279.0    282.7    -1.3%
Revenue on barters       4.6     4.2    +9.5%     13.9     12.7    +9.4%
Revenue                 91.0    93.7    -2.9%    292.9    295.4    -0.8%

The strong commercial performance of both the Radio and Broadcasting divisions
(+4% excluding one-off services) continued throughout the third quarter of
2019. Due to the particular context for television and the termination of the
one-off DTT frequency reallocation services, the Group recorded consolidated
revenue(1) of EUR86.4 million in the third quarter of 2019, down by 3.5%
compared to the same period in 2018. Consolidated revenue(1) for the first 9
months of the 2019 financial year totalled EUR279.0 million, a decrease of 1.3%
in comparison with the same period of 2018.

                                    RADIO

In the third quarter of 2019, the Radio division generated revenue(1) of
EUR55.1 million, an increase of 1.1% in comparison with the third quarter of
2018. The Group's core business is growing nationally and internationally, in
particular due to the audience figures during the April-June 2019 wave, which
saw the Group's national sales house strengthen its leadership in the
advertisers' high commercial priority target (25-49 age group(2)) and assert
its position as the number one radio offering in France for both Women Under 50
Responsible for Purchases(2) and for Millennials(2).

For the 2019/2020 season, the Group extended the 'C'Cauet' programme by an
extra hour to boost the audience successes recorded during the 2018/2019
season(3), and continued to promote its programmes by launching a new
communication campaign, 'Joue NRJ', focusing on music and stars through smart
speakers. NRJ is the most listened to radio station on smart speakers(4) and is
the number one radio in France for e-commerce.(5)

Over the first 9 months of the year, the Radio division's activity increased by
0.8%, driven in particular by the growth of national radio and by the continued
development of digital activity.

                                TELEVISION

Continuing on from the first two quarters of 2019, the TV division's
free-to-air channels (NRJ 12 and Chérie 25) saw new audience share gains in
July and August for both the entire viewing public and for the 25-49 age group
target(6). In September, the Group's TV division audience profitability
strategy resulted in an enriched programme for the new season, which featured
more magazine shows and series, but a less targeted focus than that of the
previous year. This strategy shows positive effects by enabling a significant
reduction in programming costs.

The TV division's revenue(1) totalled EUR16.4 million in the third quarter, a
decrease of 15%. This decline was due to a combination of two factors during
the quarter. The principal factor was due to very weak demand from advertisers
in July and August, whilst NRJ 12 and Chérie 25 audiences were growing.
Furthermore, in September, although demand from advertisers was higher, the
decrease in the audience reduced the volume of marketable GRPs(7), leading to a
decrease in revenue(1) that was insufficiently offset by the reversal in value.

The TV division's revenue(1) for the first 9 months of the financial year
totalled EUR61.7 million, a decrease of 7.6%. Across the 2019 financial year,
the decrease in revenue(1) should be offset by a reduction in expenses (in
particular from programming costs).

                               BROADCASTING

Excluding the one-off DTT frequency reallocation services which ended on 30
June 2019, the Broadcasting division's revenue(1) for the third quarter of 2019
recorded growth of more than 4%. Due to the termination of the one-off DTT
frequency reallocation services, the Broadcasting division recorded revenue(1)
of EUR14.9 million in the third quarter, down by EUR0.8 million in comparison
with the same period in 2018.

For the first 9 months of 2019, the Broadcasting division's revenue(1) totalled
EUR49.7 million, which was stable compared to the same period in 2018.
Excluding the one-off DTT frequency reallocation services, the Broadcasting
division recorded revenue(1) growth of more than 4%.

Next release: Full year 2019 revenue on February 5, 2020 (after market close).

Sources:
(1) Excluding barters : consolidated revenue, according to IFRS standards, not
    audited.
(2) Médiamétrie, 126,000 radio, NRJ Global, April-June 2019, Monday-Friday,
    5h-24h, targets specified, AC, QHM and Audience Share, Millennials = 15-29
    age group.
(3) Médiamétrie, 126,000 radio, NRJ, aged 13 years+, Monday-Friday,
    17h00-20h00, September 2018-June 2019 vs September 2017-June 2018,
    evolution of the Audience Share (+18%), of QHM (+14%) and of AC(+3%).
(4) Médiamétrie, Smart speakers survey, April-May 2019, Internet users aged
    15+ (43.8% of radio listeners on smart speakers listen to NRJ).
(5) Kantar Media TGI October 2019. Stations listened to over the last 8 days.
    Internet use to purchase products or services. 15+ age group target.
(6) Médiamétrie-Médiamat, Audience share, Day of viewing NRJ GROUP TV
    Division = aggregate NRJ 12 + Chérie 25, aged 4 years +, 25-49 age group,
    03h-27h, Monday to Sunday, July 2019 vs July 2018 and August 2019 vs August
    2018, evolution of the Audience Share in points.
(7) GRP: The GRP is an indicator of advertising pressure. GRP is an acronym for
    'gross rating point' and corresponds to the average number of advertising
    contacts made per 100 people in the relevant target.

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.

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 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 17 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 2019

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