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Friday 16 March, 2012

Nrj Group

NRJ GROUP - Annual results 2011

PR Newswire/Les Echos/

Paris, 15 March 2012

                                2011 earnings

                          STRONG GROWTH IN EARNINGS 
     Revenues excluding dissimilar barters up 9.9% to 377.5 million euros 
                  Current EBIT up 32.5% to 61.5 million euros 
             Net income Group share up 41.2% to 45.6 million euros

              Proposal to pay out a dividend of 0.3 euros per share

12 months to 31 December                    2011        2010         Change
    In million euros

Revenues excluding dissimilar barters      377.5       343.6         +9.9%
Revenues including dissimilar barters      382.7       350.0         +9.3%
Current EBIT excluding dissimilar barters   61.2        46.7        +31.0%
Current EBIT                                61.5        46.4        +32.5%
Net income Group share                      45.6        32.3        +41.2%

In million euros                      31 Dec 2011   31 Dec 2010      Change
Net cash position*                          94.3       108.9        -13.4%
Shareholders' equity (Group share)         482.0       475.8         +1.3%

* Current cash net of current and non-current financial liabilities

In 2011, NRJ GROUP recorded a significant increase in earnings thanks to growth
in current EBIT before barters in each business division, and the television
division in particular, with its national television channel segment (NRJ12, NRJ
HITS) breaking even.

                                     ***

Current EBIT excluding barters came to 61.2 million euros in 2011, compared with
46.7 million euros in 2010, climbing 31.0%.

After factoring in income from barter operations, current EBIT totalled 61.5
million euros in 2011, 32.5% higher than the 46.4 million euros recorded in
2010.

After taking into consideration positive non-current operating income and
expenses for 1.0 million euros, as well as the 2.9 million euros in positive
financial income, the 19.3 million euro income tax charge, the share in negative
income from affiliates for 0.2 million euros, and a negative share attributable
to minority interests for 0.3 million euros, net income Group share came to 45.6
million euros in 2011, compared with 32.3 million euros in 2010, an increase of
41.2%.

At 31 December 2011, the net cash position represented 94.3 million euros, down
14.6 million euros in relation to 31 December 2010. Cash flow from operating
activities was notably used to cover the high level of investments made during
the period, as well as the dividend paid out and the treasury stock acquired.

In light of the significant growth in earnings and the strong net cash position
at 31 December 2011, the Board of Directors will be submitting a proposal at the
general shareholders' meeting on 10 May to pay out a dividend of 0.3 euros per
share. Subject to approval at the general meeting, the dividend is scheduled to
be paid on 18 May 2012.

Breakdown of revenues and current EBIT (excluding barters) for each business

12 months to 31 December - in million euros       2011        2010     Change
Music Media and Events                           214.6        206.1     +4.1%
Television                                        77.7         62.5    +24.3%
International Business                            40.0         36.2    +10.5%
Shows and Other Productions                        3.1          4.9    -36.7%
Broadcasting                                      42.1         33.9    +24.2%
Revenues excluding dissimilar barters            377.5        343.6     +9.9%
Dissimilar barters                                 5.2          6.4    -18.8%
Revenues including dissimilar barters            382.7        350.0     +9.3%

12 months to 31 December - in million euros       2011        2010     Change
Music Media and Events                            53.4         50.1     +6.6%
Television                                        (1.7)        (6.4)   -73.4%
International Business                             0.7         (2.0)    -135%
Shows and Other Productions                        1.7          0.9    +88.9%
Broadcasting                                       8.2          6.5    +26.2%
Other business                                    (1.1)        (2.4)   -54.2%
Current EBIT excluding dissimilar barters         61.2         46.7    +31.0%
Income from dissimilar barters                     0.3         (0.3)    -200%
Current EBIT                                      61.5         46.4    +32.5%

In 2011, the Music Media and Events division generated 214.6 million euros in
revenues excluding dissimilar barters, compared with 206.1 million euros in
2010, up 4.1%. This performance factors in 3.5% revenue growth for the Radio
business in France, the division's core business.

The increase in revenues over 2011 was combined with a mechanical increase in
copyright royalties, in addition to a slight rise in purchases on sales for the
event business, which grew in 2011.

Alongside this, the division's other costs increased, including for the radio
stations, whose resources were further strengthened following two years of
necessary cuts.

In this way, the Music Media and Events business recorded a total of 
53.4 million euros in current EBIT excluding barters for 2011, up 6.6% from 
50.1 million euros in 2010.

The latest radio audience measurement wave for November-December 2011, published
by Médiamétrie, confirmed a strong level of audience growth for NRJ's station,
which was once again the quickest-growing radio station(1). With close to 6.0
million daily listeners, NRJ is France's number two radio station, and only 3%
behind the leading station(1).

All combined, with the NOSTALGIE, CHERIE FM and RIRE & CHANSONS radio stations,
NRJ GROUP is France's leading private radio group, with over 12.1 million daily
listeners(1).

(1) Source: Médiamétrie, 126,000 Radio, November-December, Monday to Friday,
    5am-midnight, 13 year olds and over - aggregate audience, change in 
    aggregate audience from one year to another

In the Television business, revenues climbed 24.3% from 62.5 million euros in
2010 to 77.7 million euros in 2011 (+6.4% in the fourth quarter). This growth
has been driven by the development of the digital terrestrial television market
and the phasing out of the analogue signal, combined with the increase in
audience levels across the Group's channels:
  - In 2011, NRJ 12 achieved an average annual audience share of 2.3%(1), up 0.4
    points over one year. It recorded the strongest rate of growth among 
    general channels(2), and is now the third most widely watched DTTV 
    channel(2). NRJ 12 thus reaches more than 10 million viewers each day(2).
  - NRJ HITS, the number one cable, satellite and ADSL music channel, has
    confirmed and further strengthened its leading position, attracting 
    nearly 6.8 million viewers each month and achieving further growth, 
    representing over one million viewers in one year(3).
  - NRJ PARIS maintained its position as the leading DTTV channel in the Paris
    Region over 2011, with more than one million weekly viewers and close
    to 2.4 million people in this region watching the channel on a regular 
    basis(4),
  
The growth in revenues has generated a mechanical increase in copyright
royalties and taxes. Furthermore, the increase in the Television division's
other costs between 2010 and 2011 primarily reflects the development of NRJ 12's
programming schedule, as well as higher broadcasting costs and the increase in
sales department costs allocated to the television division.
With revenues showing strong growth and the increase in operating expenses kept
effectively under control, the Television business significantly reduced its
current operating loss excluding barters. Indeed, it posted a 1.7 million euros
loss in 2011, compared with a loss of 6.4 million euros for 2010. In 2011, the
national channels division (NRJ 12, NRJ HITS) broke even, while NRJ PARIS
recorded a loss of 1.7 million euros, versus a 2.6 million euro loss in 2010.

The International Business division reported 40.0 million euros in revenues for
2011, compared with 36.2 million euros in 2010, up 10.5%. On a comparable basis
and at constant exchange rates, this increase comes out at 12.7%, with revenue
growth in each region where the Group is present.
Overall, operating expenses for the division are up.
In total, current EBIT excluding barters is positive, climbing from a 2.0
million euro loss in 2010 to +0.7 million euros in 2011, driven among other
factors by improvements in earnings for the German and French-speaking regions,
combined with an increase in income from licensing activities internationally.

For Shows and Other Productions, revenues totalled 3.1 million euros in 2011,
compared with 4.9 million euros in 2010, down 36.7%. For reference, in 2010, the
musical Cléopâtre contributed 2.7 million euros to consolidated revenues for
its final performances given in January 2010.
The division's expenses are also significantly lower following the final
performances of the musical Cléopâtre, while current EBIT excluding barters
came to 1.7 million euros for 2011, compared with 0.9 million euros in 2010,
notably reflecting growth in earnings for the NRJ Music label. For reference,
Cléopâtre contributed 0.3 million euros to current EBIT excluding barters in
2010. In 2011, its contribution was negligible.

The Group's Broadcasting business has continued to develop on the digital
terrestrial television broadcasting market, successfully participating in the
switch to "all digital" in France, completed in November 2011. In this climate,
the Broadcasting division contributed 42.1 million euros to consolidated
revenues in 2011, compared with 33.9 million euros in 2010, up 24.2%. Operating
expenses are also up, in line with the strong growth in business and continued
investments.
In total, EBITDA (earnings before interest, tax, depreciation and amortisation)
represented 18.6 million euros in 2011, compared with 15.2 million euros in
2010, while current EBIT (excluding barters) came to 8.2 million euros in 2011,
versus 6.5 million euros for 2010.

Current EBIT excluding barters for the Other Business division, which includes
income and expenses relating to management and transfer-costing for support
functions, shows a loss of 1.1 million euros for 2011, compared with a 2.4
million euro loss in 2010.

(1) Source: Médiamétrie Médiamat, consolidated audience, year - Médiamat
    2011, audience share 4 year olds and over, Monday-Sunday, 03:00-27:00 - 
    2.3% audience share, tied with Direct 8
(2) Source: Médiamétrie Médiamat, consolidated audience, year - Médiamat
    2011, audience share all channels combined, excluding news channels 
    (BFM TV, I Télé), tied for growth with W9, France 4 and M6
(3) Source: Médiamétrie Mediamat'Thématik - Average listening time, audience
    share and coverage over 4 weeks - Wave 22, September 2011 -February 2012 
    vs. Wave 20, Monday to Sunday, 03:00-2 7:00
(4) Médiamétrie research on local DTTV channels in Paris Region, January-June
    2011, 15 year olds and over equipped with TV in Paris Region, listening
    habits and audience, last 7 days

Trends and outlook

At this stage, the economic environment remains uncertain, with limited
visibility, so the Group is adopting a cautious approach for 2012. In January
and February 2012, the Group recorded a slight increase in advertising revenues
on its purely media activities in France (radio, internet and television) in
relation to January and February 2011.

In this environment, the Group will continue developing its activities over
2012, particularly:
- On radio, pursuing to develop audience levels across its networks and
strengthening its range of radios and web radios, particularly through
applications on smartphones and tablets to increase the consumption of digital
radio in mobility
- On television, further strengthening its own-brand programme policy on NRJ 12
with a view to reinforcing its identity and independence. For reference, the
Group has submitted applications to the French audiovisual supervisory council
(Conseil Supérieur de l'Audiovisuel) concerning three new television channels
for free national terrestrial broadcasting in high-definition.
Lastly, for the Shows and Other Productions division, the Group is able to
confirm that the new musical "1789, les amants de la Bastille" will be starting
up in September 2012, with its first performances at the Palais des Sports de
Paris.

Additional information:
The NRJ GROUP's corporate and consolidated financial statements for 2011 were
approved by the Board of Directors on 15 March 2012. The audit procedures on the
corporate and consolidated accounts have been completed. The certification
reports will be issued once the necessary procedures have been finalised for the
filing of the reference document or the publication of the annual financial
report.

                                       ***

    The Group will be releasing its first-quarter financials on 2 May 2012 
 (press release published after close of trading on the Paris stock exchange) 
The Group will be holding its general meeting on 10 May 2012 at its registered
                                      office

                        Analyst and investor information 
  NRJ GROUP - Financial Communications, 46-50 avenue Théophile Gautier, 75016
                                   Paris, France 
     Frédéric Patureau / Tel: +33 1 40 71 78 05 / email: [email protected] 
     NRJ GROUP - ISIN: FR000121691 / Reuters: SONO.PA / Bloomberg: NRG FP 
                                   www.nrjgroup.fr

                                      NRJ GROUP 
 French limited company (société anonyme) with a capital of 830,860.30 euros -
                   SIREN trade register number 332 036 128 PARIS 
             Registered office: 22 rue Boileau, 75016 Paris, France
                      
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