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Wednesday 31 August, 2011

Nrj Group

NRJ GROUP - Half year results 2011

PR Newswire/Les Echos/

Paris, 30 August 2011

                           Half-yearly earnings 2011

                              EARNINGS STRONGLY UP 
   Revenues excluding dissimilar barters up by 12.1% at 185.2 million euros 
               Current EBIT up by 41.5% at 27.3 million euros 
           Net income group share up by 62.6% at 16.1 million euros

               6 months to 30 June         2011   2010(R)   Change
                In million euros

Revenues excluding dissimilar barters      185.2    165.2    +12.1%
Revenues including dissimilar barters      187.3    168.6    +11.1%

Current EBIT excluding dissimilar barters   27.1     19.4    +39.7%
Current EBIT                                27.3     19.3    +41.5%

Net income group share                      16.1      9.9    +62.6%

        In million euros              30/06/2011  31/12/2010 Change
Net cash surplus*                           87.9    108.9    -19.3%
Consolidated equity                        458.2    475.8     -3.7%

* current cash net of current and non-current financial liabilities
(R) - NRJ GROUP made accounting changes with insignificant effects on the
historical balance sheet and income statement.

In the 1st half-year 2011, NRJ GROUP saw a strong increase in its earnings
through the growth in the current EBIT of each of its business divisions, and
particularly that of the television division, which, as forecast, approached
breakeven.

The current EBIT stood at 27.3 million euros in the first half-year 2011,
against 19.3 million euros in the first half-year 2010, up by 41.5%.

After taking into account negative non-current operational income and
expenditure of 0.1 million euros, positive financial income of 0.7 million
euros, the tax charge on earnings of 11.5 million euros, the negative share in
the earnings of associated companies of 0.1 million euros and a share
attributable to minority interests of 0.2 million euros, the net income group
share for the first half of 2011 stood at 16.1 million euros compared to 9.9
million euros for the first half of 2010, representing an increase of 62.6%.

The net cash surplus on 30 June 2011 stood at 87.9 million euros, down by 21
million euros compared to 31 December 2010, particularly bearing in mind the
payment of the NRJ GROUP dividend and the share buyback for 9.5 million euros.

Revenue and current EBIT (excluding barters) per activity

6 months to 30 June                       2011      2010    Change
In million euros
Music Media and Events                    105.2     99.1     +6.2%
Television                                 40.1     29.9    +34.1%
International Business                     19.0     17.1    +11.1%
Shows and Other Productions                 0.9      3.4    -73.5%
Broadcasting                               20.0     15.7    +27.4%
Revenues excluding dissimilar barters     185.2    165.2    +12.1%
Dissimilar barters                          2.1      3.4    -38.2%
Revenues including dissimilar barters     187.3    168.6    +11.1%

6 months to 30 June                       2011      2010    Change
In million euros
Music Media and Events                     22.6     21.4     +5.6%
Television                                 (0.8)    (4.4)   -81.8%
International Business                      0.8      0.3   +166.7%
Shows and Other Productions                 0.7      0.5    +40.0%
Broadcasting                                4.1      3.0    +36.7%
Other activities                           (0.3)    (1.4)   -78.6%
Current EBIT excluding dissimilar barters  27.1     19.4    +39.7%
Earnings on dissimilar barters              0.2     (0.1)  -300.0%
Current EBIT                               27.3     19.3    +41.5%

During the first half of 2011, the Music Media and Events division generated
105.2 million euros in revenues, compared with 99.1 million euros for the first
half of 2010, up 6.2%. The revenue of the Radio activity, the main activity of
the division, increased by 5.3% (including +3.3% in the 2nd quarter).
This increase in revenue was accompanied in the 1st half of 2011 by an automatic
increase in copyright fees and an increase in purchases over sales for the
events activity, which was dynamic in the first half-year. Also, the other
expenses for the division increased, particularly for the radio stations, for
which resources were enhanced after two years of necessary reduction, in order
to reinvigorate the audiences for the Group's radio stations.
In total, the current EBIT for the Music Media and Events division stood at 22.6
million euros in the first half of 2011, compared to 21.4 million euros for the
first half of 2010, representing an increase of 5.6%

Concerning radio audiences, according to the latest Médiamétrie survey carried
out over the April-June 2011 period, with its four radio stations, NRJ GROUP had
11.8 million daily listeners and had the strongest audience increase of all the
radio groups(1). The aggregate audience for NRJ, France's number two radio
station, has increased by 51 9,000 daily listeners over one year. Thus, NRJ had
the strongest growth(2) in all radio stations and beat its own historical growth
record(3).
(Source: Médiamétrie 126,000 radio April-June 2011, average Monday to Friday,
5 am to midnight, target 13 year olds and over - (1) aggregate audience growth
vs. April-June 2010 - (2) audience share and aggregate audience growth vs.
April-June 2010 - (3) aggregate audience growth in one year on NRJ).

In Television, revenue stood at 40.1 million euros during the 1st half of 2011,
compared to 29.9 million euros in the 1st half of 2010, representing a strong
increase of 34.1% (+32.4% in the 2nd quarter).
According to recent surveys, the Group's channels have continued to see a very
satisfactory rate of audience growth:
 - With a national audience share of 2.6% in June 2011, NRJ 12 has confirmed
   its position as the number three digital terrestrial television (DTTV)
   channel, achieving the strongest rates of growth among DTTV channels. NRJ
   12 is now watched every day by 9,400,000 viewers
   (source Médiamétrie - Médiamat, aggregate audience, June 2011 vs. May
   2011 and vs. June 2010 - PDA).
 - NRJ PARIS once again confirmed its position as the number one local channel
   in the Paris Region over the first half of 2011, with more than 1 million
   weekly viewers.
   (source: Médiamétrie - Review of local digital terrestrial television
   channels in Paris Region, January-June 2011, basis 15 years and over equipped
   with TV in Paris Region).
 - NRJ HITS has beaten its own records and further strengthened its position
   as the number one music channel in the cable-satellite and ADSL sector, with
   nearly 6.5 million viewers each month. At all times, NRJ HITS has a 133% lead
   over its closest rival.
   (source: Médiamétrie - Médiamat thématik campaign stage 21 from 3
   January to 19 June 2011 vs. campaign stages 20 and 19, Monday to Sunday
   03:00/27:00 - 4 weeks coverage - 4 year olds and over).

The expenses for the division were up, particularly due to the controlled
development of the programme schedule of NRJ 12 and the increase in variable
charges and advertising department expenses in line with the growth in
activity.
In total, due to the strong increase in revenue, the current operating loss
(excluding dissimilar barters) for the Television division was strongly down,
approaching operating breakeven for the division overall from the 1st half-year,
since it stood at 0.8 million euros in the 1st half of 2011, against a loss of
4.4 million euros in the 1st half of 2010.

Revenues on the International Business division totalled 19.0 million euros,
compared with 17.1 million euros for the 1st half of 2010, an increase of 11.1%
(+8.6% on a comparable basis and at constant exchange rates), thanks more
specifically to revenue growth in the French and German-speaking regions.
The operational expenditure for the division overall was up, in spite of savings
made in Belgium and Norway, particularly due to the costs of developing new
stations in Germany (Frankfurt) and Austria (Styria) that were launched in
2010.
In total, due to the significant increase in revenue, the current EBIT before
dissimilar barters for the International Business division stood at 0.8 million
euros in the first half of 2011, against 0.3 million euros in the first half of
2010, a very strong increase of 166.7%.

The Shows and Other Productions division posted 0.9 million euros in revenues
for the first half of 2011, compared with 3.4 million euros for the first half
of 2010. For reference, during the 1st half of 2010, the musical "Cléopâtre"
contributed 2.6 million euros for its final performances given in January
2010.
In total, the current EBIT for the Shows and Other Productions division stood at
0.7 million euros in the first half of 2011, against 0.5 million euros in the
first half of 2010. The contribution of "Cléopâtre", which was negligible in
2011 (0.1 million euros), is compared to a contribution of 0.4 million euros in
the 1st half of 2010.

Lastly, the Group's Broadcasting division has continued to develop strongly,
particularly in connection with the phasing out of analogue broadcasting and the
switch to "all digital" on television. Its contribution to consolidated revenues
represented 20.0 million euros over the first half of 2011, up 27.4% from the
15.7 million euros recorded over the first half of 2010.
Operational charges (essentially external expenditure for broadcasting,
personnel costs and depreciation) were up, in line with the development in the
activity.
EBITDA* stood at 8.3 million euros in the 1st half of 2011, against 7.2 million
euros in the 1st half of 2010 and the current EBIT excluding dissimilar barters
stood at 4.1 million euros in the 1st half of 2011, compared to 3.0 million
euros in the 1st half of 2010.
* Earnings (excluding dissimilar barters) before interest, tax, depreciation and
amortisation

The current EBIT excluding dissimilar barters for the Other Activities division,
which includes expenses and income related to the management and re-invoicing of
support functions, stood at a loss of 0.3 million euros on 30 June 2011,
compared to a loss of 1.4 million euros on 30 June 2010.

Recent developments and prospects

At the beginning of July and August, the Group recorded an increase in its
advertising revenues in France compared with the same period last year. This
increase appeared to be continuing in September.

In radio in France, the Group is continuing its efforts to develop the audience
as in the 1st half year, when the resources for the radio stations where
enhanced and studies were carried out on the brands and programming, in view of
the radio back period at the end of August 2011.

In television, the Group is continuing to develop its channels NRJ 12, NRJ PARIS
and NRJ HITS with the aim of reaching operational breakeven* for the division
for the whole of the year 2011. Particularly on NRJ 12, the programme schedule
for the end of the holidays is again enhanced with totally new concepts under
the channel's brands. Also, the Group will be applying to the French Audiovisual
Board to create a new national free-of-charge DTTV channel.
*Current EBIT excluding dissimilar barters

                                        ***

Additional information:

- The summary consolidated financial statements for the first half of 2011 were
  approved by the Board Meeting on 30 August 2011. They were the subject of a
  limited examination in which the statutory auditors found no significant
  anomalies likely to call into question the compliance of the summary
  consolidated half-yearly financial statements with the IAS 34 standard.

- The 2011 half-yearly financial report will be available on the Group's
  Internet site www.nrjgroup.fr no later than 31 August 2011.

The Group will publish its financial information for the 3rd quarter on 7
November 2011 
(press release published after close of trading on the Paris Stock Exchange)

                        Analyst and Investor Information 
  NRJ GROUP - Financial Communications, 22 rue Boileau, 75016 Paris, France 
   Frédéric PATUREAU / Tel : + 33 1 40 71 78 05 / e-mail : [email protected] 
   NRJ GROUP - ISIN code FR000121691 / Reuters: SONO.PA / Bloomberg: NRG FP 

                                   www.nrjgroup.fr
                                       NRJ GROUP 
    French public company (société anonyme) with capital of 830,860.30 euros -
                              SIREN 332 036 128 RCS PARIS 
                   Registered office: 22 rue Boileau 75 016 Paris
                      
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