NRJ GROUP (EPA:NRG) - NRJ GROUP - Press release annual results 2020
Transparency directive : regulatory news
31/03/2021 18:19
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Paris, March 31, 2021 - 6.15 pm2020 annual results - NRJ Group
o Positive Current Operating Profit(1) thanks to cost savings
o EUR40 million net profit Group share, an increase of 84.3%
o Group share equity strengthened at EUR644.7 million
o Proposed dividend of EUR0.21 per share
On 31 March 2021, the NRJ Group Board of Directors met and approved the
consolidated and annual accounts for the 2020 financial year.
In millions of euros 2020 2019 Change
Revenue excluding barters 324.8 386.2 -15.9%
EBITDA(ii) excluding barters 36.5 61.8 -40.9%
Current operating profit excluding barters 3.0 30.5 -90.2%
Operating profit 3.0 28.2 -89.4%
Financial result 41.1 2.2 N.A
Net profit Group share 40.0 21.7 +84.3%
In millions of euros As at Dec 31, As at Dec 31, Change
2020 2019
Net cash surplus(iii) 248.9 179.8 +38.4%
Shareholders'equity Group share 644.7 604.8 +6.6%
In 2020, set back by the health crisis and its economic consequences, the Group
recorded a EUR59.0 million (-18.4%) drop in revenue(1) for its media
activities, reaching a low point in the second quarter of 2020 (-44.4%).
In this exceptional and unprecedented context, from March 2020, NRJ Group:
* implemented new ways of working which, whilst first and foremost preserving
its employees' health, provided listeners, viewers and clients with the
services they expected;
* offered advertisers solutions tailored to their specific communication needs
for that period;
* implemented a plan to reduce the Group's expenses and investments in response
to the brutal drop in revenue.
EUR31.8 million were saved in expenses for Radio, Television and Other
activities, absorbing almost 54% of the drop in media revenue(1). The COVID-19
health crisis did not impact the Broadcasting division's revenue(1) and
profitability in 2020, even if it slowed down work on new sites.
Despite the extraordinary economic consequences of the health crisis, by taking
action, the Group managed to generate a positive current operating profit(1) of
EUR3.0 million, but which is a significant decrease compared to that of 2019,
which totalled EUR30.5 million. This decrease was mainly recorded during the
first half of 2020, due to the particularly brutal drop in media revenue(1)
during that period; the decrease was much more limited during the second half.
The Group's current operating profit(1) for the second half of 2020 was EUR16.9
million, compared to EUR19.9 million for the same period in 2019.
Thanks to the capital gain generated by selling NRJ Group's minority share in
Euro-Information Telecom, the financial result recorded an increase of EUR38.9
million, taking the net profit Group share to EUR40.0 million, compared with
EUR21.7 million for the 2019 financial year.
The free cash-flowiv generated by the Group during the 2020 financial year
reached EUR29.0 million and, on 31 December 2020, the Group posted a net cash
surplusiii of EUR282.6 million, which, after applying the IFRS 16 standard and
taking the EUR33.7 million in lease liabilities into account, totals EUR248.9
million.
Revenue and current operating profit/loss (excluding barters) by activity
In millions of euros 2020 2019 Change
Radio 191.5 236.7 -19.1%
Television 70.7 84.5 -16.3%
Broadcasting 62.6 65.0 -3.7%
Revenue excluding barters 324.8 386.2 -15.9%
Radio 14.1 34.3 -58.9%
Television (26.3) (19.1) -37.7%
Broadcasting 16.4 16.7 -1.8%
Other activities (1.2) (1.4) +14.3%
Current operating profit/loss
excluding barters 3.0 30.5 -90.2%
RADIO
In 2020, in the face of an unprecedented health crisis in terms of both
duration and severity, the Group's radio stations demonstrated radio media's
significant reactivity by quickly adapting their offering of programmes and
content to support their listeners during an exceptional and unprecedented
period. They rallied to support a number of charitable actions relayed on the
Group's websites and mobile apps, in aid of listeners and health care
workers.
Thanks to the core values of its unifying brands that are familiar to French
consumers, the Group maintained its leadership in the advertisers' high
commercial priority target and is ranked as the number one radio offering in
France for the 25-49 age group(2) and for Women Under 50 Responsible for
Purchases(2). NRJ Group recorded an audience share of 17.8%(3) for the 25-49
age group target and an audience share of 20.0%(3) for Women Under 50
Responsible for Purchases. Every day, 10.1 million(4) people listen to the
Group's radio stations.
* NRJ brings together 4.8 million daily listeners(5) and has cemented its
position as France's number 1 radio station for listeners in the under-65 age
group(6), 'MANU DANS LE 6/10' as France's number one morning show for
listeners in the under-60 age group(7), and 'C'CAUET' as France's number one
drive-time radio show for the under-65 age group(7).
* NOSTALGIE has cemented its position as France's second most listened to music
radio station(8), with more than 3.1 million listeners(9) every day.
* CHÉRIE FM, the most feminine of French radio stations(10), is listened to by
almost 1.9 million listeners(11) every day, and
* RIRE ET CHANSONS, the most masculine of music radio stations(12), brings
together more than 1.2 million daily listeners(13).
With 2020 characterised by an increase in internet use, NRJ Group and its
programmes available on all digital devices is the number one private audio
group: number one private internet radio group(14), leading radio group on
smart speakers(15) and number one group for e-commerce(16). Every week, NRJ
brings together almost 6 million listeners who buy products or services
online(16). NRJ is also France's number 1 private radio in terms of podcast
listener numbers(17).
In the exceptional context of the COVID-19 pandemic, the Radio division's
revenue(1) totalled EUR191.5 million for the 2020 financial year, a decrease of
19.1% compared to the 2019 financial year (with -20.4% in France and -13.9%
internationally). In Germany, Austria and Belgium, the local health measures
resulted in a drop in revenue(1) of 16.4%, 9.1% and 18.1% respectively.
Revenue(1) (non-advertising) from partnerships in Sweden and Finland did not
suffer the consequences of the COVID-19 crisis.
In the face of the Radio division's drop in revenue,(1) the Group proved its
agility by making cost savings of EUR25 million (i.e. 55% of the decrease in
revenue(1)), enabling the Radio division to post a current operating profit(1)
of EUR14.1 million, down by EUR20.2 million compared to EUR34.3 million in the
2019 financial year. This reduction in the current operating profit(1) was
mainly seen in the first half of 2020, since in the second half, despite the
EUR13.4 million drop in revenue(1), the Radio division's current operating
profit(1) reached EUR20.8 million, with a drop limited to EUR2.1 million
compared to the same period in 2019.
The health measures implemented in response to the pandemic particularly
affected local and event-related activities in France. Whether it was the
lockdown measures in March 2020, which caused local radios and regional
advertising sales houses to close for 8 weeks, or the subsequent health
measures, both resulted in almost total stoppage of event-related activities
and point of sale events. In 2020, these exceptional measures had a negative
effect on the Radio division's profitability in terms of local and
event-related activities in France, which amounted to EUR10.1 million, or 50%
of the total decrease in the current operating profit(1) recorded overall by
the division in 2020 compared to the 2019 financial year.
International radio's current operating profit(1) dropped by EUR3.0 million in
2020 compared to 2019.
TELEVISION
In this unprecedented situation caused by the health crisis, consumption of TV
media was at a very high level in 2020. Viewers' great need for information was
clearly beneficial to the 4 news channels, which saw their general audience
share increase by 38%(18) in one year (+1.7 percentage points for the entire
viewing public). In this context, the Group's TV division had the following
audience shares in 2020: 2.4%(19) for the entire viewing public, 2.7%(19) for
the 25-49 age group target, and 3.2%(19) for the Women Under 50 Responsible for
Purchases target. CHÉRIE 25 renewed its all-time audience high for the Women
Under 50 Responsible for Purchases target with 1.3%(20). Every day, almost 8.5
million viewers watch NRJ 12 and CHÉRIE 25(21).
Given the COVID-19 crisis, the TV division's revenue(1) totalled EUR70.7
million for the 12 months of the financial year, down 16.3% compared to the
same period of the previous financial year, but with growth of +4.1% in the
second half of the year.
The division made cost savings of EUR6.6 million during the 2020 financial
year. This helped reduce the impact of the decrease in revenue(1) by 48% and
achieve a current operating result(1) of EUR(26.3) million, down EUR7.2 million
compared to the 2019 financial year, with a +1.8% improvement in the second
half of 2020.
BROADCASTING
In 2020, revenue(1) for the Broadcasting division totalled EUR62.6 million,
down EUR2.4 million (-3.7%) compared to the same period of 2019. As a reminder,
in 2019, towerCast recorded revenue linked to one-off DTT frequency
reallocation services, which ended on 30 June 2019. Discounting this item, the
Broadcasting division's revenue(1) recorded growth of almost +5% for the 12
months of the 2020 financial year.
The towerCast market share continued to increase in 2020, both for DTT (+0.9
percentage points to 25.9%) and for FM (+1.1 percentage points to 25.6%).
towerCast continued with significant investments in its infrastructure to, on
the one hand, offer radio stations and television channels an alternative
offer, and, on the other hand, reduce its own dependency on the historically
dominant operator, TDF. In 2020, despite a slowdown in work due to the health
crisis, towerCast built 27 new sites to substitute hosting with third-party
operators (23 TDF sites and 5 other sites closed) and is now operating on 840
sites.
The 2020 financial year was marked by savings in expenses in the first half of
the year, partly linked to the lockdown in spring and partly to postponing
certain projects. As such, despite the lack of one-off services, the division's
current operating profit(1) was relatively stable and totalled EUR16.4 million
in 2020, compared with EUR16.7 million in 2019.
Financial structure, dividend and share buyback programme
On 31 December 2020, sharesholder's equity Group share totalled EUR644.7
million, up EUR39.9 million, for a balance sheet total of EUR856.6 million.
At the Shareholders' General Meeting on 20 May 2021, the Board of Directors
will propose the payment of a EUR0.21 dividend per share for the 2020 financial
year, with the ex-dividend date scheduled for 15 June 2021, and payment on 17
June 2021. NRJ Group's Board of Directors will also propose authorising a new
share buyback programme at the Shareholders' General Meeting.
Recent change and outlook:
In a health and economic situation that will remain uncertain in 2021, the
Group will continue to adjust to circumstantial changes, as it did in 2020,
while continuing to develop as follows:
Radio division
* Driven by its 4 complementary brands, their strong brand image and its
expertise in the sector, 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, the Group will also continue the editorial and commercial
development of its digital activity in 2021 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.
TV division
* 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 revenue.
* The Group will also explore various options which could in particular
encourage development of the TV division at the end of the current COVID-19
crisis.
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.
Additional information:
The consolidated accounts have been audited and the report is currently being
issued.
The French version of the 2020 Universal Registration Document should be
available on the Group's www.nrjgroup.fr website, by 9 April 2021 at the
latest.
Next release: Financial information for the first quarter of 2021 on 5 May 2021
(after market close).
APPENDIX
(i) Excluding barters:
In millions of euros 2020 2019 Change
Revenue excluding barters 324.8 386.2 -15.9%
Revenue on barters 11.4 20.4 -44.1%
Revenue 336.2 406.6 -17.3%
Current operating profit/loss
excluding barters 3.0 30.5 -90.2%
Current operating profit/loss
on barters 0.9 (2.1) N.A
Current operating profit/loss 3.9 28.4 -86.3%
(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 2020 2019
Current Operating Profit/Loss excluding
barters transactions 3.0 30.5
Amortisation and impairment of tangible and
intangible assets, and net change in provisions 32.5 30.3
Change in provision for post-employment
benefits recognised in personnel expenses 1.0 1.0
EBITDA excluding barter transactions 36.5 61.8
(iii) Net cash surplus:
In millions of euros As at Dec 31, 2020 As at Dec 31, 2019
Cash and cash equivalents 294.4 229.5
Group's outstanding bank
overdrafts and borrowings (11.8) (16.0)
Lease liabilities (33.7) (33.7)
Net cash surplus 248.9 179.8
(iv) Free cash flow:
In millions of euros 2020 2019
Cash generated from operations
before interest and taxes 39.3 60.7
Changes in Working Capital 10.3 6.8
Income taxes (paid) / reimbursed (6.0) (12.0)
Net cash flows from operating
activities (A) 43.6 55.5
Net cash flows from investing
activities (B) (14.6) (20.6)
Free cash flow (A)+(B) 29.0 34.9
****************
Sources:
(1) Excluding barters: (appendix i).
(2) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown", NRJ
Global, Monday-Friday, 5h-24h targets specified, AC, QHM and Audience Share.
(3) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown", NRJ
Global, Monday-Friday, 5h-24h, targets specified, Audience Share.
(4) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown", NRJ
Global, Monday-Friday, aged 13 years and +, 5h-24h, AC, 10,100,000 daily
listeners.
(5) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown",
NRJ, Monday-Friday, aged 13 years and +, 5h-24h, AC, 4,818,000 daily
listeners.
(6) Médiamétrie, 126 000 Radio, 2020 excluding "may-june after lockdown"",
NRJ, Monday-Friday, 13-64 age group, 5h-24h, AC.
(7) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown",
NRJ, Monday-Friday, 13-59 age group, 6h00-10h00 (MANU DANS LE 6/10) and 13-64
age group 15h00-20h00 (C'CAUET), AC.
(8) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown" ,
NOSTALGIE, Monday-Friday aged 13 years and +, 5h-24h QHM and Audience Share.
(9) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown" ,
NOSTALGIE, Monday-Friday aged 13 years and +, 5h-24h, AC, 3,127,000 daily
listeners.
(10) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown",
CHERIE FM, Monday-Friday, 5h-24h, female listeners, AC and QHM in structure.
(11) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown" ,
CHERIE FM, Monday-Friday aged 13 years and +, 5h-24h, AC, 1,870,000 daily
listeners.
(12) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown"
RIRE & CHANSONS, Monday-Friday, 5h-24h, male listeners, AC and QHM in
structure.
(13) Médiamétrie, 126,000 radio, 2020 excluding "may-june after lockdown" ,
RIRE ET CHANSONS, Monday-Friday aged 13 years and +, 5h-24h, AC, 1,248,000
daily listeners.
(14) ACPM-OJD, global digital radio broadcasting, December 2020, active
listening sessions +30 seconds, data for France, NRJ Group: 33,141,568 active
listening sessions.
(15) 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).
(16) Kantar Media TGI October 2020. Stations listened to over the last 8 days.
Internet use to purchase products or services. 15+ age group target.
(17) Médiamétrie, Global Radio, September-October 2020, AC, 5h-24h,
Monday-Friday, aged 13 years and +, AC in replay.
(18) Médiamétrie-Médiamat, aggregate chaînes Info (global)= BFM TV, CNEWS,
LCI, Franceinfo: Audience share, Day of viewing, aged 4 years and +, 03h-27h,
Monday to Sunday, 2020 vs 2019, Change in percentage points. 6.2% in 2020 vs
4.5% in 2019 : +1.7 point.
(19) Médiamétrie-Médiamat, NRJ GROUP TV Division = aggregate NRJ 12 +
Chérie 25, Audience share, Day of viewing, targets specified, 03h-27h, Monday
to Sunday, 2020.
(20) Médiamétrie-Médiamat, Chérie 25, Audience share, Day of viewing,
target specified, 03h-27h, Monday to Sunday,2020.
(21) Médiamétrie-Médiamat, NRJ GROUP TV Division = aggregate NRJ 12 +
Chérie 25, aged 4 years and +, 03h-27h, Monday to Sunday, 2020, TCE =
8,478,000 viewers, threshold 10 consecutive seconds.
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
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