NRJ GROUP (EPA:NRG) - NRJ GROUP - Financial Information Q1 2020

Transparency directive : regulatory news

29/04/2020 17:51

Paris, April 29, 2020 - 5.45pm
Financial information for the 1st quarter of 2020 - NRJ Group

   * Quarter's activity heavily impacted by the start of the COVID-19 crisis
* Group's significant reactivity and teams' mobilisation in the face of crisis

In millions of euros               Q1 2020   Q1 2019    Change
Radio                               45.8      53.0     -13.6%
Television                          18.3      21.2     -13.7%
Broadcasting                        15.5      17.5     -11.4%
Revenue excluding barters           79.6      91.7     -13.2%
Revenue on barters                   3.2       4.4     -27.3%
Revenue                             82.8      96.1     -13.8%

With its Media activities in France and Europe significantly affected by the
consequences of the COVID-19 health crisis in March, in the first quarter of
2020 the Group recorded revenue excluding barters of EUR79.6 million, down by
13.2% compared to the first quarter of 2019.

During this unprecedented COVID-19 crisis, the Group's priority has been, and
remains, its employees' health, while continuing to provide the services that
its listeners, viewers and clients expect and stepping up its actions for
solidarity, which are even more essential at this time.
Thanks to the commitment of all of the Group's employees and the implemented
business continuity plans:
  * the Group's radios and television channels quickly adapted their offering
    of programmes and content to support their listeners and viewers;
  * towerCast maintained service continuity and enabled French people to access
    to news, cultural and entertainment programmes;
  * commercial sales houses supported advertisers with their needs that are
    specific to this period.

                                  RADIO

In France

Until 13 March, radio revenue(1) for the first quarter of 2020 showed a
significant increase.

The lockdown measures led to advertisers immediately and massively cancelling
their campaigns as of 16 March, our local radios and our regional advertising
sales house were closed, and event-related activities were stopped. These
unprecedented measures disrupted the very positive dynamic that had been
recorded until then and caused a 38.2% drop in radio revenue(1) in France for
March.

With the new Médiamétrie results from the January-March 2020 wave, the
Group's national sales house maintained 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 has cemented its position as France's
number 1 radio station for listeners in the under-65 age group(3); 'Manu dans
le 6/9' is France's number one morning show for listeners in the under-60 age
group(4), and 'C'Cauet' is France's number one drive-time radio show for the
under-65 age group(3).

This drop in advertising investments has come at a time when radio media is
cementing its attractiveness, with online listening recording an average
increase of 15% for the first two weeks of the French lockdown (according to
data from the ACPM(5)), whereas music streaming platforms seemed to be
experiencing a decrease in listening(6).

During this time of crisis, consumers are expecting a different type of
communication from brands. NRJ Global, the Group's national sales house, has
adapted its organisation to support advertisers and their radio and digital
audio announcements during the lockdown by, for example, implementing a
specific system to create and broadcast messages within a maximum of 24 hours.
Radio media thus demonstrated its flexibility, enabling advertisers to be
reactive.

Driven by the 46.1% of French people who listen to at least one of the Group's
radio stations (25 million listeners(7)) and thanks to its stations' commitment
to supporting our fellow citizens, care workers and French artists, NRJ Group
is maintaining an exceptional link with its listeners at the heart of the
crisis.

Internationally

The Group's radios are also working hard to support their listeners and
advertisers.

In Germany, Austria and Belgium, the various local health measures resulted in
a drop in revenue(1) in March, of 12%, 21% and 27% respectively.

In this exceptional context, the Radio division's revenue(1) totalled EUR45.8
million in the first quarter of 2020, a decrease of 13.6% compared to the first
quarter of 2019.

                                TELEVISION

Within the context of COVID-19 crisis, the TV division's revenue(1) totalled
EUR18.3 million in the first quarter of 2020 and saw a drop of EUR2.9 million
(including EUR2.5 million in March) compared to the first quarter of 2019.

In March, adjustements to NRJ 12 and Chérie 25's programme scheduling and
viewers' great need for news programmes (the 4 news channels saw their general
audience share increase by 71% compared to March 2019(8)) disadvantaged the
Group's TV division's audiences for the month and the first quarter of 2020.

                                BROADCASTING

As a reminder, in the first half of 2019, towerCast recorded revenue linked to
one-off DTT frequency reallocation services, which ended on 30 June 2019. Given
this negative base effect, revenue(1) for the Broadcasting division in the
first quarter of 2020 totalled EUR15.5 million, down EUR2.0 million (-11.4%)
compared to the first quarter of 2019.

Discounting this item, in the first 3 months of the 2020 financial year, the
Broadcasting division's revenue(1) recorded growth of more than 6%.

Recent change and perspectives: COVID-19

Radio and TV division

The immediate, massive and unprecedented drop in advertising investments by
advertisers which began when the lockdown measures were announced is continuing
on to the second quarter of 2020 as the lockdown is maintained. Depending on
how the economic activity recovers when the lockdown period comes to an end,
the Group's advertising revenue could record a decrease of between 55 and 70%
for the months of April and May 2020.

The Group was quick to take measures to reduce the impact of this very
significant decrease in its revenue on its current operating profit(1) by
implementing furloughing as of mid-March for almost all of its regional teams,
and as of early April for some of its Parisian employees, and by implementing a
plan to reduce its expenses and investments. However, given the extent of the
decrease in advertising revenue that the Group could record at the end of May,
the profitability of its Radio (in France and internationally) and Television
divisions will be severely affected by this unprecedented health and economic
crisis.

As a result of the great uncertainty that remains as to the progression of this
historic health and economic crisis, the Group does not have sufficient
visibility to measure the extent of the impact it will have on the Group's
revenue(1) and current operating profit(1) for 2020.

Broadcasting division

As an essential services operator, towerCast and its employees are committed to
maintaining service continuity and therefore helping French people to access to
news, cultural and entertainment programmes.
To date, the COVID-19 health crisis has not had a significant impact on the
Broadcasting division's revenue and profitability, even if it has slowed down
work on new sites.

Next release: General Shareholders' Meeting on June 26, 2020.

Sources:
(1) Consolidated revenue excluding barters, not audited, and according to IFRS
    standards.
(2) Médiamétrie, 126 000 radio, January-March 2020, NRJ Global,
    Monday-Friday, 5h-24h, target specified, AC, QHM and PDA.
(3) Médiamétrie, 126 000 radio, January-March 2020, NRJ, Monday-Friday ,
    13-64 age group, 5h-24h (NRJ), 16h00-20h00 (C'CAUET), AC.
(4) Médiamétrie, 126 000 radio, January-March 2020, NRJ, Monday-Friday, 13-59
    age group, 6h00-9h30 (MANU DANS LE 6/9), AC.
(5) https://www.acpm.fr/Actualites/Toute-l-actualite/Actualites-generales/
    ACPM-Special-confinement-La-Radio-fortement-consommee-en-ligne
(6) https://lesjours.fr/obsessions/coronavirus-quarantaine/
    ep26-streaming-confinement
(7) Médiamétrie, Panel Radio 2019-2020, maximum coverage, full period 23
    days, 5h-24h, aged 13 years and +, maximum coverage 25,117,000 listeners,
    46.1%.
(8) Médiamétrie-Médiamat, Audience share, Day of viewing, (BFM TV+LCI+CNEWS+
    France Info), aged 4 years, 03h-27h, Monday to Sunday, March 2020 vs March
    2019, change in percentage points.

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 Universal 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 - Financial Information Q1 2020

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