NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2019
Transparency directive : regulatory news
18/03/2020 18:49
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Paris, March 18, 2020 - 6.15pm2019 annual results - NRJ Group
- Implemented strategy is a success
On 18 March 2020, the NRJ Group Board of Directors chaired by Jean-Paul
Baudecroux held a conference call and approved the consolidated and annual
accounts for the 2019 financial year.
In millions of euros 2019(i) IFRS 16 2019 without Comparable
incidence IFRS16 2018 Change
incidence
Revenue excluding barters 386.2 386.2 392.3 -1.6%
EBITDA(ii) excluding
barters 61.8 8.8 53.0 55.9 -5.2%
Current operating profit
excluding barters 30.5 0.2 30.3 33.7 -10.1%
Operating profit 28.2 0.2 28.0 32.3 -13.3%
Net profit Group share 21.7 (0.2) 21.9 22.0 -0.5%
In millions As at Dec 31 IFRS 16 As at Dec 31, As at Dec 31, Comparable
of euros 2019(i) incidence 2019 without 2018 Change
IFRS16
Net cash
surplus(iii) 179.8 (33.7) 213.5 198.6 +7.5%
Shareholders'
equity Group
share 604.8 (0.2) 605.0 598.2 +1.1%
(i) For the first time, the 2019 accounts were drawn up in accordance with the
IFRS 16 Leases standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
For NRJ Group, the 2019 financial year was characterised by:
- Good audience figures in both radio and television, with:
o Strengthened radio leadership in France for the high commercial priority
target 25-49 age group(2) (+2.3 percentage points in one year with audience
share at 18.2%),
o An audience increase for the Group's radio stations in its 3 main foreign
locations, Germany, Belgium and Sweden, with increases of 23.2%(3), 19.6%(4)
and 18.7%(5) respectively,
o Audience share gains for the TV division for the high commercial priority
targets(20): +0.2 percentage points for the 4+ and 25-49 age group targets
and for the women under 50 responsible for purchases target.
- Consolidated revenue(1) of EUR386.2 million, whose decrease masks the growth
of Radio activities (+0.7%) and the increase in Broadcasting activities (+4%
excluding the impact of one-off services).
- A reduction in the Group's expenses thanks to the implementation of the TV
division's audience profitability strategy and the optimisation of the other
divisions' expenses.
- A current operating profit excluding barters that was relatively stable
compared to 2018 excluding the Broadcasting division's one-off services.
- A stable net profit group share of EUR21.9 million (excluding the impact of
IFRS 16) compared to the previous year, mainly due to the increase in the
financial results and the decrease in tax expenses.
- A net cash surplus of EUR213.5 million which, after applying the IFRS 16
standard and deducting EUR33.7 million in lease liabilities, amounts to
EUR179.8 million.
Revenue and current operating profit (excluding barters) by activity
In millions of euros 2019 2018 Change
Radio 236.7 235.0 +0.7%
Television 84.5 90.8 -6.9%
Broadcasting 65.0 66.5 -2.3%
Revenue excluding barters 386.2 392.3 -1.6%
Radio 34.3 34.9 -1.7%
Television (19.1) (19.4) +1.5%
Broadcasting 16.7 19.6 -14.8%
Other activities (1.4) (1.4) +0.0%
Current operating profit
excluding barters (i) 30.5 33.7 -9.5%
(ii) For the first time, the 2019 accounts were drawn up in accordance with the
IFRS 16 Leases standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
RADIO
In France, the Médiamétrie results for 2019 prove the relevance of the
investments and the strong positions of NRJ Group's 4 complementary brands.
Every day, almost 11 million French people(6) listen to the Group's radio
stations, and almost 18.6 million do so every week(7).
- NRJ brings together 5.2 million daily listeners(8) and has cemented its
position as France's number 1 radio station for listeners in the under-65 age
group(9), 'MANU DANS LE 6/9' as France's number one morning show for
listeners in the under-65 age group(9), and 'C'CAUET' as France's number one
drive-time radio show for the under-65 age group(9).
- NOSTALGIE has cemented its position as France's second music radio station,
with more than 3.2 million listeners(10) every day.
- Chérie FM, the most feminine of French radios, is listened to by more than
1.9 million listeners(11) every day and
- RIRE ET CHANSONS, the most masculine of music radios, brings together more
than 1.5 million daily listeners(12).
Thanks to the success of the Group's strategy of investments in its programmes
and their promotion, and the sales teams' performance, revenue(1) from radio
activities in France increased by 1.4%. 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 beginning of the new 2019 season, NRJ Group's Internet radio stations
have recorded more than 196 million active listening sessions(13), which
represents an 11% increase 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). Every week, NRJ
brings together more than 6.2 million listeners(17) who buy products or
services online, and has recorded the greatest annual radio increase, gaining
more than one million additional listeners who make purchases online each
week(18). Voice is the new mouse-click.
In parallel, French radio recorded very limited growth in its expenses in 2019
(+1.2%) while heavily investing in its programmes and their promotion.
The increase in radio revenue(1) in France and control of the expenses enabled
the current operating profit(1) to grow by +2.7% in 2019 compared to the
previous year.
In the foreign countries that most contribute to the radio division's results,
the Group recorded significant audience increases in 2019, with growth of
23.2%(3) in Germany, 19.6%(4) in Belgium and 18.7%(5) in Sweden.
In 2019, international radio's current operating profit(1) dropped by EUR1.2
million, mainly due to the operation of a new network in Sweden and the
decrease in revenue(1) in Germany against an economic backdrop in 2019 that was
less positive than in the previous year.
As such, for the 2019 financial year, the Group recorded a current operating
profit(1) of EUR34.3 million with its core business.
TELEVISION
In 2019, the Group successfully continued its channel complementarity and
audience profitability strategy. Implementing this strategy resulted in
audience share gains for the entire viewing public and for priority targets
and, at the same time, a significant reduction in programming costs.
In 2019, 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(20) in one year) and 3.6%(19) for the women under 50 responsible for
purchases target (up 0.2 percentage points(20)). Every day, more than 7.5
million viewers watch NRJ 12 and Chérie 25(21).
These good audience figures were recorded whilst, at the same time, the TV
division's expenses (mainly programming costs) were significantly reduced in
2019 compared to 2018.
Impacted by the weak market, in the 2019 financial year, revenue(1) for the TV
division totalled EUR84.5 million, down 6.9% compared with the 2018 financial
year. However, the decrease in expenses(1) offset that of revenue(1), enabling
the TV division to achieve a current operating profit(1) of -EUR19.1 million, a
+EUR0.3 million improvement compared with the previous financial year.
BROADCASTING
Having ended in the second quarter of 2019, revenue linked to one-off DTT
frequency reallocation services was down by 42%. Given this negative base
effect, the Broadcasting division recorded revenue(1) of EUR65.0 million, down
by 2.3% compared to that of 2018. Discounting this item, the Broadcasting
division's revenue(1) recorded growth of more than 4%, driven by the growth of
its FM, DAB+ and DTT broadcasting activity. Over the financial year, towerCast
saw its market share increase for both DTT (+1.5 percentage points to 25.0%)
and FM (+0.6 percentage points to 24.5%).
In 2019, towerCast continued to make significant investments in its
infrastructure in order to, on the one hand, offer radio and television
producers an alternative, more competitive offer, and, on the other hand,
reduce its own dependency with regards to the historically dominant operator,
TDF. towerCast built 26 new sites in 2019, 19 of which were to replace hosting
with third-party operators. towerCast now operates on 841 sites (7 new sites
operated in one year).
The division's current operating profit(1) was down by EUR2.9 million to
EUR16.7 million, largely due to the negative base effect linked to the
reduction in one-off services.
Recent change and outlook
These perspectives do not take into account the effects of the coronavirus
crisis; this issue is specifically detailed at the end of this paragraph.
Radio division
- In France, driven by its 4 complementary brands and the popular programmes
available to listeners, NRJ Group intends to assert its leadership for the
25-49 age group target and continue its commercial reversal in value strategy,
in particular through innovation and differentiation. In a context of the
development of smart speakers and increasing demand for audio content as a
result of this technological advance, the Group will also continue the
editorial and commercial development of its digital activity in 2020 by relying
on its expertise in producing and marketing audio content. NRJ Group is
striving to become a major player in digital audio in the medium term.
- Internationally, in 2020 the Group predicts a stable current operating
profit excluding barters with, in particular, low visibility of the economic
situation in Germany, the negative impact of the non-renewal of FM broadcast
authorisation in Hamburg, but positive audiences.
TV division
- In a TV market that will benefit from Médiamat's integration of audience
measurements of use while mobile and outside the home from April 2020, the
group will continue its audience profitability strategy by offering programmes
that meet the public's expectations but whose costs are optimised compared to
the corresponding estimated revenue. The Group will also emphasise its
commercial action focusing on reversal in value.
Broadcasting division
- The Group intends to develop its position as an alternative French operator
across the entire value chain for the FM, DAB+ and DTT broadcasting market
thanks to its technological expertise and its knowledge of the territories by
focusing on boosting its own broadcasting sites. In 2020, the Broadcasting
division will no longer record one-off DTT frequency reallocation services as
this operation was successfully concluded. This will result in a negative base
effect on the division's current operating profit excluding barters.
Coronavirus
With regards to COVID-19, our employees' health remains the Group's priority,
while continuing to provide the services expected by our listeners, viewers and
clients. To do so, the Group has implemented business continuity plans for its
various professions and sites.
In terms of activity, since the beginning of March the Group has recorded
campaign cancellations from both radio and television advertisers, with sharp
acceleration over the last few days. Given these cancellations, revenue for the
radio and television divisions should be down significantly in Q1 2020. Beyond
the first quarter of 2020, there is still uncertainty about the evolution of
the COVID-19 health crisis and its consequences on the Group's results. NRJ
Group will communicate these consequences to the market as soon as it has
sufficient visibility.
Additional informations:
The consolidated accounts have been audited and the certification report is
currently being issued.
An upcoming Board of Directors meeting will set the date for the Shareholders'
General Meeting called to approve these accounts and will decide on the
resolutions that will be put forward.
APPENDICES
(i) Method for the first application of the IFRS 16 Leases standard
The Group has chosen to apply the simplified retrospective approach, without
reprocessing comparative periods of financial statements.
The current operating profit excluding barters saw a positive effect of EUR0.2
million, the financial result decreased by EUR0.4 million, and the net profit
Group share by EUR0.2 million (see table below).
Including
In millions 2019 Including IFRS 16 Including IFRS 16 IFRS 16
of euros incidence of lease incidence of incidence of
expenses amortisation of interests
cancellation right-of-use on lease
assets liabilities
Current operating
profit/loss
excluding barters 30.5 8.8 (8.6)
Financial result 2.2 (0.4)
Net profit Group
share 21.7
Total
IFRS 16
incidence
0.2
(0.4)
(0.2)
(ii) 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.
In millions of euros 2019 2018
Current Operating Profit
excluding barters transactions 30.5 33.7
Amortisation and impairment of
tangible and intangible assets,
and net change in provisions 21.7 21.5 *
Amortisation of right-of-use assets(1) 8.6 0.0
Change in provision for post-employment
benefits recognised in personnel expenses 1.0 0.7
EBITDA excluding barter transactions 61.8 55.9
(1) For the first time, the 2019 accounts were drawn up in accordance with the
IFRS 16 standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
* Until the end of the 2018 financial year, the change in provisions excluded
the reversals used (credited to the same line as that used for the expenditures
incurred). This ceased to be the case on 1 January 2019. In order to facilitate
the comparison of data, reclassifications were made; they helped reduce the
amount of net allocations to provisions to EUR1.2 million on 31 December
2018.
(iii) Net cash surplus:
In millions of euros As at Déc 31, As at Déc 31,
2019(i) 2018
Cash and cash equivalents 229.5 221.5
Group's outstanding bank
overdrafts and borrowings (16.0) (22.9)
Lease liabilities(1) (33.7)
Net cash surplus 179.8 198.6
(1) For the first time, the 2019 accounts were drawn up in accordance with the
IFRS 16 standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
(iv) Excluding barters:
In millions of euros 2019(1) 2018 Change
Revenue excluding barters 386.2 392.3 -1.6%
Revenue on barters 20.4 18.7 +9.1%
Revenue 406.6 411.0 -1.1%
Current operating profit/
loss excluding barters 30.5 33.7 -9.5%
Current operating profit/
loss on barters (2.1) (1.4) -50.0%
Current operating profit/
loss 28.4 32.3 -12.1%
(1) For the first time, the 2019 accounts were drawn up in accordance with the
IFRS 16 standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
(v) Free cash flow:
In millions of euros 2019 2018
Cash generated from operations before
interest and taxes 60.7 55.6
IFRS 16 incidence on Cash generated(1) 8.8
Changes in Working Capital 6.8 21.2
IFRS 16 incidence on Changes in
Working Capital(1) 0.0
Income taxes (paid) / reimbursed (12.0) (8.0)
Net cash flows from operating activities (A) 55.5 68.8
Net cash flows from investing activities (B) (20.6) (50.3)
Free cash flow (A)+(B) 34.9 18.5
(1) For the first time, the 2019 accounts for were drawn up in accordance with
the IFRS 16 standard (use of the simplified retrospective approach, without
reprocessing the previous financial year's figures).
Sources:
(1) Excluding barters: (appendice iv).
(2) Médiamétrie, 126,000 radio, NRJ Global, Monday-Friday, 25-49 age group,
5h-24h, QHM, November-December 2019 (18.2% vs November- December 2018 (15.4%).
Change in percentage points.
(3) MA 2019 Radio II - German-speaking people aged 14+ - Monday/Friday.
Evolution compared to MA 2018 Radio II - German-speaking people aged 14+ -
Monday/Friday. Stations majority controlled and marketed by the Group (ENERGY
CITY KOMBI + ENERGY Stuttgart Region) reach 250,000 listeners per average hour,
up by 23.2% compared to the same wave last year. ENERGY CITY KOMBI = ENERGY
Berlin + ENERGY Hamburg + ENERGY Munich + ENERGY Nuremberg.
(4) CIM Radio September-December 2019 - Monday-Sunday - 0h-24h. Evolution
compared to CIM Radio - September-December 2018 - Monday- Sunday - 0h-24h. In
Belgium, according to the latest audience measurement, NRJ is growing on all
key indicators, with a market share of 6.1%, up by 19.6% compared to the same
wave of the previous year. In daily reach, NRJ continues to recruit, as 76,000
new listeners have joined us, for a total of 375,825 daily listeners, compared
to 299,764 a year ago.
(5) TNS SIFO PPM / 2019 Monday-Sunday - Target 12+. Evolution compared to TNS
SIFO PPM / 2018. In 2019, NRJ reached an average of 716,000 daily listeners, up
by 18.7% compared to 2018. NRJ recorded a share of listening of 13.4%, up by
24.1% compared to 2018.
(6) Médiamétrie, 126,000 radio, January-December 2019, NRJ Global,
Monday-Friday aged 13 years and +, 5h-24h, AC, 10,905,000 daily listeners and
18,575,000 weekly listeners.
(7) Médiamétrie panel 2018-2019, week 1 coverage, Monday-sunday, 5H 24, 13
years and +.
(8) Médiamétrie, 126,000 radio, January-December 2019, NRJ, Monday-Friday
aged 13 years and +, 5h-24h, AC, 5,219,000 daily listeners.
(9) Médiamétrie, 126 000 radio, 2019, NRJ, Monday-Friday, 13-64 age group,
5h-24h (NRJ) , 6h00-9h30 (Manu in " le 6/9"), 16h00-20h00 (C'CAUET), AC.
(10) Médiamétrie, 126,000 radio, January-December 2019, NOSTALGIE,
Monday-Friday aged 13 years and +, 5h-24h, AC, 3,236,000 daily listeners.
(11) Médiamétrie, 126,000 radio, January-December 2019, CHERIE FM,
Monday-Friday aged 13 years and +, 5h-24h, AC, 1,927,000 daily listeners.
(12) Médiamétrie, 126,000 radio, January-December 2019, RIRE ET CHANSONS,
Monday-Friday aged 13 years and +, 5h-24h, AC, 1,541,000 daily 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) Kantar Media TGI October 2019. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target. Changes vs
October 2018.
(19) Médiamétrie-Médiamat, Audience share, Day of viewing, Chérie 25,
target specified, 03h-27h, Monday to Sunday, 2019.
(20) Médiamétrie-Médiamat, Audience share, Day of viewing, Chérie 25,
target specified, 03h-27h, Monday to Sunday, 2019 vs 2018. Change in %.
(21) 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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