NRJ GROUP (EPA:NRG) - NRJ GROUP - Financial Information Q3 2020

Transparency directive : regulatory news

04/11/2020 17:51

Paris, November 4, 2020 - 5.45pm
Financial information for the third quarter of 2020 - NRJ Group

- Clear recovery in NRJ Group's activity in the third quarter of 2020
- Very limited visibility for the end of 2020

                         3rd quarter         9 months to date
In millions of euro  2020  2019 Change    2020   2019 Change

Radio                50.4  55.1   -8.5%    131.1  167.6   -21.8%
Television           16.9  16.4   +3.0%     46.8   61.7   -24.1%
Broadcasting         15.7  14.9   +5.4%     46.7   49.7    -6.0%
Revenue excluding
barters              83.0  86.4   -3.9%    224.6  279.0   -19.5%
Revenue on barters    2.9   4.6  -37.0%      7.7   13.9   -44.6%
Revenue              85.9  91.0   -5.6%    232.3  292.9   -20.7%

NRJ Group's revenue(1) for the third quarter of 2020 showed a clear improvement
in activity compared to the first two quarters of the financial year, despite
the consequences of the COVID-19 health crisis, which continued to affect Radio
activity in France and Europe, particularly in September. The Group's
consolidated revenue excluding barters totalled EUR83.0 million in the third
quarter of 2020, down 3.9% compared to the third quarter of 2019, but with a
significant improvement compared to the decrease recorded in the second (38.6%)
and first quarter (13.2%) of 2020. The Group's consolidated revenue excluding
barters for the first 9 months of the 2020 financial year totalled EUR224.6
million, a decrease of 19.5% in comparison with the same period of 2019.

RADIO

In France

After recording a very positive reversal dynamic in July and August, radio saw
a slowdown in September and some advertising campaigns were cancelled as
successive health restrictions were announced. In addition, the third quarter
is usually a period during which events such as summer tours and point of sale
events significantly contribute to Radio activity revenue(1) in France. In the
context of the COVID-19 health crisis, revenue(1) from events and point of sale
events dropped by almost 72% in the third quarter of 2020 compared to the same
period last year. As such, in the third quarter, Radio activity in France
recorded an 8% drop in its revenue(1), limited to 2.3% excluding events and
point of sale events; an improvement compared to the decreases seen in the
second quarter (-44.4%) and the first quarter (-15.3%) of 2020.

Thanks to the core values of its unifying brands that are familiar to French
consumers, the Group is the leading commercial radio offer for the high
commercial priority targets: the 25-49 age group target(2) and the Women Under
50 Responsible for Purchases target(2). NRJ is France's number 1 radio station
for listeners in the under-65 age group(3); 'Manu dans le 6/10' 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). On NRJ, the new 2020/2021 season programme is filled with optimism
that brings together all generations, and the two flagship programmes have been
extended by 30 minutes in the morning (6am-10am) and one hour during drive time
(3pm-8pm). Nostalgie, Chérie FM and Rire et Chansons are focusing even more on
music, togetherness, relaxation and humour.

With its programmes available on all digital devices, NRJ Group is the number
one private audio group: number one private internet radio group(5), leading
radio group on smart speakers(6) and number one group for e-commerce(7). Every
week, NRJ brings together nearly 6 million listeners who buy products or
services online(7).

Internationally

In the third quarter of 2020, International Radio revenue(1)  recorded a 10.4%
drop, a clear recovery compared to the second quarter of 2020, during which
revenue(1) fell by 29.5%.

In the exceptional context of the COVID-19 health and economic crisis, the
Radio division's revenue(1) reached EUR50.4 million in the third quarter, down
8.5% compared to the third quarter of 2019, and EUR131.1 million for the first
9 months of 2020, a decrease of 21.8% (-EUR36.5 million) compared to the first
9 months of 2019.

TELEVISION

The Group's TV division grew by 3% in the third quarter of 2020, driven by a
dynamic advertising market over the summer and increasing target market
audience shares (+0.1 percentage points for the 25-49 age group target, up to
3.0%(8), and +0.4 percentage points for the Women Under 50 Responsible for
Purchases target, up to 3.6%(8)). Revenue(1) in the third quarter improved
compared to the 51.9% decrease seen in the second quarter, and the 13.7% drop
in the first quarter of 2020.

The new season's programmes focus on entertainment, relaxation and fascinating
stories, and the Group's TV division saw a historic month of September(9) for
the Women Under 50 Responsible for Purchases target, with an audience share of
3.7%(10) (+0.9 percentage points in one year(10)).

In the context of the COVID-19 crisis, the TV division's revenue(1)  totalled
EUR46.8 million for the first 9 months of the financial year, down 24.1%
compared to the same period of the previous financial year.

BROADCASTING

In the third quarter of 2020, the Broadcasting division recorded revenue(1) of
EUR15.7 million, an increase of 5.4% compared to the third quarter of 2019,
driven by growth in its FM, DAB+ and DTT activities.

As a reminder, in 2019, towerCast recorded revenue linked to one-off DTT
frequency reallocation services, which ended on 30 June 2019. Given this
negative base effect, over the first 9 months of 2020, revenue(1) for the
Broadcasting division totalled EUR46.7 million, down EUR3.0 million (-6.0%)
compared to the same period of 2019. Discounting this item, the Broadcasting
division's revenue(1) recorded growth of more than 5% for the first 9 months of
the 2020 financial year.

Recent change and outlook: COVID -19

Given the implementation of new health restrictions in France and Europe to
tackle the second wave of the COVID-19 pandemic, there is very limited
visibility for the last quarter of the 2020 financial year, when business
activity may be harder hit by the health measures than the third quarter.

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

Next release: Full year 2020 revenue on February 4, 2021 (after market
close).

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) ACPM-OJD, global digital radio broadcasting, September 2020, active
listening sessions +30 seconds, data for France, NRJ Group: 34,014,802 active
listening sessions.
(6) Médiamétrie, Smart speakers survey, April-May 2019, Internet users aged
15 and + (65.2% of radio listeners on smart speakers listen to radio stations
of NRJ Group).
(7) Kantar Media TGI October 2020. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target.
(8) Médiamétrie-Médiamat, NRJ GROUP TV Division = aggregate NRJ 12 + Chérie
25, Audience share, Day of viewing, targets specified, 03h-27h, Monday to
Sunday, Q3 2020 and Q3 2020 vs Q3 2019, evolution in percentage points.
(9) Month of September Médiamat.
(10) Médiamétrie-Médiamat, NRJ GROUP TV Division = aggregate NRJ 12 +
Chérie 25, Audience share, Day of viewing, target specified, 03h-27h, Monday
to Sunday, September 2020 and September 2020 vs September 2019, evolution 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 Int ernet 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

NRJ GROUP's latest news

30/04/2024 17:43

NRJ GROUP (EPA:NRG) - NRJ GROUP - Financial Information Q3 2020

Transparency directive : regulatory news

NRJ GROUP's latest news

Other stories