NRJ GROUP (EPA:NRG) - NRJ Group - Press release 2019 revenue

Transparency directive : regulatory news

05/02/2020 17:53

Paris, February 5, 2020 - 5.45 pm
2019 revenue - NRJ Group

   *  Increased Radio revenue(1) and 4% increase in Broadcasting activities
                       excluding one-off services in 2019
              *  TV division's revenue(1) impacted by weak market

                          4th quarter            12 months to date
In millions of euros  2019   2018  Change     2019     2018    Chаnge

Radio                 69.1   68.8  +0.4%     236.7    235.0    +0.7%
Television            22.8   24.0  -5.0%      84.5     90.8    -6.9%
Broadcasting          15.3   16.8  -8.9%      65.0     66.5    -2.3%

Revenue excluding
barters              107.2  109.6  -2.2%     386.2    392.3    -1.6%

Revenue on barters     6.5    6.0  +8.3%      20.4     18.7    +9.1%
Revenue              113.7  115.6  -1.6%     406.6    411.0    -1.1%

The strong commercial performance of NRJ Group's Radio and Broadcasting
divisions (+4% excluding one-off DTT frequency reallocation services) continued
throughout the fourth quarter of 2019.
Due to weak demand for television and the termination of the one-off
Broadcasting services, NRJ Group recorded consolidated revenue excluding
barters of EUR107.2 million in the fourth quarter of 2019, down by 2.2%
compared to the same period in 2018. Consolidated revenue excluding barters for
the 2019 financial year totalled EUR386.2 million, a decrease of 1.6% compared
with the 2018 financial year.

RADIO

In the fourth quarter of 2019, the Radio division generated revenue(1) of
EUR69.1 million, an increase of 0.4% in comparison with the fourth quarter of
2018. In France, the Group's core business recorded 3.0% growth. However,
Germany's economic slowdown contributed to a decrease in the Group's revenue(1)
there.

With the new Médiamétrie results from the November-December 2019 wave, the
Group's national sales house asserted its leadership for the high commercial
priority targets: the 25-49 age group target(2) and the Women Under 50
Responsible for Purchases target.(2) NRJ's two flagship programmes, 'Manu dans
le 6/9' and 'C'Cauet', both reported significant growth in their audience share
over the year, with +10%(3) and +19%(4) respectively. 'Manu dans le 6/9'
cemented its position as France's number one morning show for listeners in the
under-65 age group,(5) and 'C'Cauet' as France's number one drive-time radio
show for the under-65 age group.(6)

In the 2019 fiscal year, the Radio division's revenue(1) increased by 0.7% when
compared with the 2018 fiscal year, driven in particular by the growth of
national radio in France and by the continued development of digital activity.

In France, the Group boosted investments in its programmes and their promotion
in 2019, thereby asserting its leadership for the high commercial priority
target 25-49 age group with audience share of 18.2%(7) (+2.3 percentage points
in one year(8)) and a QHM (average quarter hour) of 403(9), i.e. +8.6% in one
year(10). The year also came to an end with public recognition of NRJ, which
was nominated in 4 categories at Radio Notes 2019(11), winning all 4 awards:
Music radio station of the year ; Morning music radio station of the year for
'Manu dans le 6/9'; Entertainment radio station of the year for 'C'Cauet sur
NRJ'; and Night-time call-in show of the year for 'MIKL sur NRJ'. Every day,
more than 10.7 million French people listen to the Group's radio stations (12).

The strategy was successfully implemented and resulted in a return to growth
for Radio revenue in France (+1.4% compared to 2018 and +2.1% compared to 2018
excluding the impact of the musical '1789: Les Amants de la Bastille'). Digital
activities also contributed to the Radio division's growth. They increased by
more than 17%, driven by the performance of the audio and video formats and the
success of the regional sales house's commercial offers.

Since the new 2019 season, NRJ Group's Internet radio stations have recorded
more than 196 million active listening sessions(13), which represents an
increase of +11% in one year(14). NRJ Group is ranked as the number one private
group for Internet radio in France(15) and NRJ is the number one radio in
France for smart speakers(16)  and e- commerce.(17)

The revenue(1) generated abroad in 2019 was down slightly (-1.8%) - the
slowdown in activity in Germany, linked to the local economic context, was only
partially offset by the increase in global revenue(1) for the rest of the
international perimeter.

TELEVISION

In 2019, the Group led a channel complementarity and audience profitability
strategy which resulted in audience share gains for the entire viewing public
and for priority targets (with all-time highs recorded in June(18)) and a
significant reduction in programming costs.

The cumulative audience share for the two free-to-air channels totalled
2.7%(19) for the entire viewing public (+0.2 percentage points(20) compared to
2018), 3.2%(19) for the 25-49 age group target (+0.2 percentage points in one
year(20)) and 3.6%(19) for the Women Under 50 Responsible for Purchases target
(up 0.2 percentage points(20)). Chérie 25 in particular had a historic year
for the Women Under 50 Responsible for Purchases target, with an audience share
of 1.3%(21), an increase of 18%(22) in one year. Every day, more than 7.5
million viewers watch NRJ 12 and Chérie 25(23).

The weak market demand experienced in July and August was repeated in November
and December, following a month of growth in October. Despite being partially
offset by a positive value effect, this weak market influenced the division's
performance in the fourth quarter. The TV division recorded revenue(1) of
EUR22.8 million, down by 5% compared with the same period in 2018.

In the 2019 financial year, revenue(1) for the TV division totalled EUR84.5
million, down 6.9% compared with the 2018 financial year. This decrease in
revenue(1) should be offset by a reduction in expenses, in particular from
programming costs.

BROADCASTING

As a reminder, in 2018 and in the first half of 2019, towerCast recorded
revenue linked to one-off DTT frequency reallocation services, which ended on
30 June 2019. Given the negative base effect, the Broadcasting division's
revenue(1) in the fourth quarter of 2019 totalled EUR15.3 million, down by
EUR1.5 million (-8.9%) compared to the fourth quarter of 2018 and EUR65.0
million in 2019, also down EUR1.5 million (-2.3%) compared to 2018.

Excluding this item, in the fourth quarter of 2019 and as for the rest of the
financial year, the Broadcasting division's revenue(1) recorded growth of more
than 4%.

Next release: 2019 annual results on March 18, 2020 (after market close).

Sources :
(1) Consolidated revenue excluding barters, in the process of being audited,
and according to IFRS standards.
(2) Médiamétrie, 126,000 radio, NRJ Global, November-December 2019,
Monday-Friday, 5h-24h, targets specified, AC, QHM and Audience Share.
(3) Médiamétrie, 126,000 radio, NRJ, Monday-Friday, aged 13 years and +,
06h00-09h30, Audience share, November-December 2019 vs November- December 2018.
Change in %.
(4) Médiamétrie, 126,000 radio, NRJ, Monday-Friday, aged 13 years and +,
16h00-20h00, Audience share, November-December 2019 vs November- December 2018.
Change in %.
(5) Médiamétrie, 126,000 radio, November-December 2019, NRJ, Monday-Friday,
13-64 age group, AC, 06h00-09h30.
(6) Médiamétrie, 126,000 radio, November-December 2019, NRJ, Monday-Friday,
13-64 age group, AC, 16h00-20h00.
(7) Médiamétrie, 126,000 radio, NRJ Global, Monday-Friday, 25-49 age group,
5h-24h, Audience share, November-December 2019,
(8) Médiamétrie, 126 000 radio, NRJ Global, Monday-Friday, 25-49 age group,
5h-24h, Audience share, November-December 2019 vs November- December 2018.
change in percentage points..
(9) Médiamétrie, 126,000 radio, NRJ Global, Monday-Friday, 25-49 age group,
5h-24h, QHM, November-December 2019.
(10) Médiamétrie, 126,000 radio, NRJ Global, Monday-Friday, 25-49 age group,
5h-24h, QHM, November-December 2019, (403 thousands of listeners) vs
November-December 2018 (371 thousands of listeners). Change in %.
(11) Results announced on 19 december 2019.
(12) Médiamétrie, 126,000 radio, November-December 2019, NRJ Global,
Monday-Friday aged 13 years and +, 5h-24h, AC, 10,730,000 listeners.
(13) ACPM-OJD, global digital radio broadcasting, September-December 2019,
active listening sessions +30 seconds, worldwide, NRJ Group: 196,127,500 active
listening sessions.
(14) ACPM-OJD, global digital radio broadcasting, active listening sessions +30
seconds, worldwide, NRJ Group, September-December 2019 (196,127,500 active
listening sessions) vs September-December 2018 (176,156,193 active listening
sessions).
(15) ACPM-OJD, global digital radio broadcasting, December 2019, active
listening sessions +30 seconds, data for France, NRJ Group: 35,080,035 active
listening sessions.
(16) Médiamétrie, Smart speakers survey, April-May 2019, Internet users aged
15 and + (43.8% of radio listeners on smart speakers listen to NRJ).
(17) Kantar Media TGI October 2019. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target.
(18) Médiamétrie-Médiamat, Audience share, Day of viewing NRJ GROUP TV
Division = aggregate NRJ 12 + Chérie 25, aged 4 years +, 25-49 age group and
WRP < 50 age group, 03h-27h, Monday to Sunday. All-time audience highs in June
2019.
(19) 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, 2019.
(20) 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, 2019 vs 2018. Change in percentage points.
(21) Médiamétrie-Médiamat, Audience share, Day of viewing, Chérie 25,
target specified, 03h-27h, Monday to Sunday, 2019.
(22) Médiamétrie-Médiamat, Audience share, Day of viewing, Chérie 25,
target specified, 03h-27h, Monday to Sunday, 2019 vs 2018. Change in %.
(23) Médiamétrie-Médiamat, NRJ GROUP TV Division = aggregate NRJ 12 +
Chérie 25, aged 4 years, 03h-27h, Monday to Sunday, 2019, TCE = 7,517,000
viewers.

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 and voice 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 - Press release 2019 revenue

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