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Friday 30 August, 2013

Nrj Group

NRJ GROUP - Press release First Half Results 2013

PR Newswire/Les Echos/

Paris, 29 August 2013

                           2013 half-year earnings

                Current EBIT up +4.4% excluding CHERIE 25(1)
                            Revenues(2) up +12.6%

* Current EBIT growth for the Radio business
* Ongoing investments in free national television
* Significant increase in International earnings
* Success of the musical "1789 Les Amants de la Bastille" and growth for the
  music label
* Strong earnings growth continuing for the Broadcasting business

     6 months to 30 June - in million euros     2013      2012        Change
Revenues excluding dissimilar barters          211.3      187.7       +12.6%
Revenues including dissimilar barters          213.8      189.6       +12.8%

Current EBIT excluding dissimilar barters       19.0       26.8       -29.1%
Current EBIT                                    19.0       26.6       -28.6%

Net income Group share                          10.2       16.8       -39.3%
     in million euros                       30 Jun 2013  31 Dec 2012  Change
Net cash position *                             79.3       82.9        -4.3%
Shareholders' equity (Group share)             507.0      497.2        +2.0%
* Current cash net of current and non-current financial liabilities

During the first half of 2013, the NRJ Group achieved growth in current EBIT
across its various business lines, with the exception of the TV division as a
result of the inherent losses with the development of the new national channel
CHERIE 25, combined with a particularly difficult television advertising
market.

Indeed, NRJ GROUP has:
 * Achieved growth in profitability on its radio activities,combined with a
   significant increase in audience levels for its stations and NRJ in 
   particular, which is once again France's leading radio station(3),
 * Moved forward with its investments in free national television, continuing
   to improve the programming schedule, strengthening the target audience for
   NRJ 12 and developing its new channel CHERIE 25,
 * Significantly increased the profitability of its international business,
 * Made progress with earnings from its productions (musical and music label),
 * Further strengthened the profitability of its radio broadcasting activities
   in France.
   
In this way, current EBIT excluding both CHERIE 25 and dissimilar barters came
to 28.4 million euros for the first half of 2013, compared with 27.2 million
euros for the first half of 2012, up 4.4%. Overall, after factoring in the
inherent losses associated with the development of the new channel CHERIE 25, in
addition to income from dissimilar barters, current EBIT represents 19.0 million
euros for the first half of 2013, compared with 26.6 million euros for the first
half of 2012.

(1) Current EBIT excluding both dissimilar barters and CHERIE 25.
(2) Revenues excluding dissimilar barters.
(3) Médiamétrie 126,000 Radio - Monday to Friday - 13 year-olds and over,
    5am-midnight - aggregate audience - April-June 2013.

After taking into consideration 0.5 million euros in financial income, as well
as the 8.2 million euros income tax charge, the positive share in income from
affiliates for 0.1 million euros, and a 0.7 million euros share attributable to
minority interests, net income Group share for the first half of 2013 totalled
10.2 million euros, versus 16.8 million euros for the first half of 2012.

At 30 June 2013, the net cash position represented 79.3 million euros, down 3.6
million euros in relation to 31 December 2012.

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

    6 months to 30 June                     2013     2012     Change
     in million euros
Music Media and Events                      99.3     98.8     +0.5%
Television                                  41.9     42.1     -0.5%
International Business                      21.1     20.7     +1.9%
Shows and Other Productions                 22.3      2.1     +962%
Broadcasting                                26.7     24.0    +11.3%
Revenues excluding dissimilar barters      211.3    187.7   +12.6 %
Dissimilar barters                           2.5      1.9    +31.6%
Revenues including dissimilar barters      213.8    189.6    +12.8%
     
    6 months to 30 June                     2013     2012     Change
     in million euros
Music Media and Events                      22.7     20.3    +11.8%
Television                                (17.7)    (2.1)        NA
International Business                       5.2      2.2     +136%
Shows and Other Productions                  3.2      0.8     +300%
Broadcasting                                 7.3      6.5    +12.3%
Other Business                             (1.7)    (0.9)        NA
Current EBIT excluding dissimilar barters   19.0     26.8    -29.1%
Income from dissimilar barters               0.0    (0.2)        NA
Current EBIT                                19.0     26.6    -28.6%

During the first half of 2013, the Music Media and Events division generated
99.3 million euros in revenues, compared with 98.8 million euros for the first
half of 2012, up 0.5%.
Overall, factoring in the reduction in costs for the division and the increase
in revenues, current EBIT excluding dissimilar barters came to 22.7 million
euros for the Music Media and Events business for the first half of 2013, up
11.8% from 20.3 million euros in the first half of 2012.

According to the latest audience survey carried out by Médiamétrie over the
period from April to June 2013, NRJ is once again France's leading radio
station, with 6,522,000 daily listeners(4). In addition, for the first time in
the Group's history, all the indicators for all the stations (NRJ, NOSTALGIE,
CHERIE FM and RIRE ET CHANSONS) are up over one year(5). All combined, with its
four radio stations, NRJ GROUP has confirmed its position as France's leading
private radio group, with close to 12.6 million daily listeners(4).

The Television business recorded 41.9 million euros in revenues for the first
half of 2013, compared with 42.1 million euros for the first half of 2012, down
0.5% in a particularly difficult television advertising market.
For the first half of 2013, the Television division reported a current operating
loss excluding dissimilar barters of 17.7 million euros, compared with a 2.1
million euro loss for the first half of 2012. In 2013, earnings include the
inherent losses associated with the development of CHERIE 25, as well as the
negative impact of a particularly difficult advertising market for television,
against a backdrop of moves to further strengthen NRJ12's programming schedule.

Sources: Médiamétrie 126,000 Radio, April-June 2013, Monday to Friday, 13
year-olds and over, 5am-midnight or timeslots indicated.
(4) Aggregate audience.
(5) Change in aggregate audience, quarter of an hour average, audience share and
    listening duration per listener, April-June 2013 vs April-June 2012.

In terms of audiences, NRJ 12 continued rolling out its effective targeting
strategy during the first half of 2013, achieving growth in one year on its
priority targets, particularly 25-49 year olds, with a +7% increase in its
audience share, as well as women under 50 in charge of purchases, with its
audience share climbing +32% to reach 3.7% on this target. Alongside this, 
the channel has maintained its position across all targets, with an audience
share of 2.4% for the first half of 2013(6). Each day, the channel attracts
almost 9.7 million viewers(7).

Concerning CHERIE 25, the channel's first audience results are encouraging, with
64% of its audience made up of women aged 15 and over, and a 0.4% audience share
on women under 50 in charge of purchases(8). 6 months after its launch, CHERIE
25 attracted in average on the month of June 2013 14,984,000 viewers(9).

Lastly, NRJ HITS and NRJ PARIS have achieved excellent audience scores(10). NRJ
HITS is still the leading Cable-Satellite and ADSL music channel, with the
strongest rate of growth among music channels and a lead over its nearest rival
which has been extended even further, up +255%11. The channel is watched by more
than 6 million viewers each month(12). This season, NRJ PARIS has seen progress
across all its indicators, in addition to achieving a triple historical audience
record(13).

Revenues for the International Business division totalled 21.1 million euros,
compared with 20.7 million euros for the first half of 2012, an increase of
1.9%, thanks in particular to revenue growth in Germany and Belgium.
The division has seen very strong growth, with current EBIT before dissimilar
barters climbing 136% to 5.2 million euros for the first half of 2013, versus
2.2 million euros for the first half of 2012. This positive earnings trend
notably reflects the higher levels of earnings recorded in Germany, Belgium and
Sweden.

The Shows and Other Productions division posted 22.3 million euros in revenues
for the first half of 2013, compared with 2.1 million euros for the first half
of 2012, up 962%.
Current EBIT before dissimilar barters came to 3.2 million euros for the first
half of 2013, up 300% compared with the 0.8 million euros recorded during the
first half of 2012. This strong rate of growth in revenues and earnings
primarily reflects the success of the regional tour by the musical "1789 Les
Amants de la Bastille", combined with growth in the music label business.

The Broadcasting division has continued to develop, particularly on the digital
terrestrial television market, with the deployment of six new HD channels. Its
contribution to consolidated revenues represented 26.7 million euros for the
first half of 2013, up 11.3% compared with the 24 million euros recorded during
the first half of 2012.
EBITDA(14) came to 13.8 million euros for the first half of 2013, compared with
11.9 million euros for the first half of 2012 (+16%), while current EBIT
excluding dissimilar barters climbed to 7.3 million euros for the first half of
2013, up 12.3% versus 6.5 million euros in the first half of 2012.

NRJ 12: Médiamétrie, Médiamat, consolidated audience from January to June
2013, 4 year-olds and over and indicated targets, Monday to Sunday, extrapolated
average rate and audience share,03:00-27:00, NRJ 12:
(6)  Audience share, NRJ 12, January-June 2013 vs January-June 2012, 4 year-olds
     and over.
(7)  Aggregate rate.
(8)  CHERIE 25: Médiamétrie, Médiaplanning files, May-June 2013, 15 year-olds
     and over + indicated targets, Monday to Sunday, 03:00-27:00.
(9)  Médiamétrie, Médiamat - monthly coverage of CHERIE on June 2013. Viewing
     threshold of 10 cumulated seconds NRJ HITS : Médiamétrie,
     Médiamat'Thématik, :
(10) Consolidated audience, complete Wave 25 from 31 December 2012 to 16 June
     2013, 4 year-olds and over, Monday to Sunday, 03:00-27:00.
(11) Extrapolated average rate and change in extrapolated average rate, Wave 25
     vs Wave 23.
(12) 4 weeks coverage, viewing threshold 10 consecutive seconds.
(13) NRJ PARIS: Médiamétrie, Local TV survey, September 2012-June 2013, base
     15 years and over equipped with TV in Paris Region, extrapolated average
     rate-extrapolated aggregate rateaudience share-listening duration per 
     viewer and historical records for extrapolated average rate-audience 
     share and listening duration per viewer.
(14) Current EBIT excluding dissimilar barters before depreciation and
     provisions.

Recent developments and outlook

The Group is confident that it will be able to continue developing its business,
and more specifically:
 * On radio in France, the Group is rolling out its new programming schedules
   for the end of the summer, looking to continue developing audience levels for
   its four stations and gaining market shares.
 * On television, the Group is continuing to develop. During the second half of
   2013, for NRJ12, the aim is to offset the negative impact of the contraction 
   in the advertising market seen during the first six months, while CHERIE 25 
   aims to continue developing effectively.
 * Internationally, the Group is continuing to build on the work accomplished to
   date with a view to increasing the division's operating margin,
 * Lastly, on the Broadcasting business, the Group is continuing to develop its
   operations and invest in its facilities, particularly with a view to growing 
   on the DTTV broadcasting market in connection with the deployment, scheduled
   through to mid-2015, of the six new HD channels.
 
Trends: over the period from July to August, the Group has recorded an increase
in its advertising revenues in France to date compared with the same period last
year.

Additional information:

- The condensed consolidated financial statements for the first half of 2013
  were approved by the Board of Directors on 29 August 2013. The procedures for 
  a limited review of the condensed consolidated accounts have been completed.
  The statutory auditors' report will be issued once the necessary procedures 
  have been finalized for filing the half-year financial report.
- The French version of the 2013 half-year financial report will be available on
  the Group's website www.nrjgroup.fr by 31 August 2013 at the latest.

                                        ***

About NRJ GROUP

NRJ GROUP is one of the leading private media groups in France and an
international player present in 22 other countries, either directly or under
brand licensing agreements with NRJ/ENERGY, the number one international radio
brand, and/or NOSTALGIE/NOSTALGIA. In France, the Group is the private radio
market leader and one of the new players on the television market. The Group is
also a growing player on the radio broadcasting market, through its subsidiary
towerCast, number two on the French broadcasting market. NRJ GROUP is a
publisher, producer and broadcaster, and markets its own media spaces. For
several years, it has been supported by the strength of its radio media and its
NRJ, NOSTALGIE, CHERIE FM and RIRE & CHANSONS brands, as well as its marketing
expertise and commercial power for deploying new media, particularly on
television, and related activities around partnerships, such as Mobile
Telephony, in order to follow and anticipate consumer developments, while
offering a wider range of advertising services for its customers. 

NRJ GROUP shares are listed on the Euronext market in Paris (Compartment B).
Codes - ISIN: FR00012169; Reuters: SONO.PA; Bloomberg: NRG FP.

 The Group will be realeasing its third-quarter financials on 5 November 2013
 (press release published after close of trading on the Paris stock exchange)

                       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 810,815.35 euros -
              SIREN trade register number 332 036 128 PARIS
          Registered office: 22 rue Boileau, 75016 Paris, France
                      
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