Earnings Release • Mar 15, 2012
Earnings Release
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Paris, 15 March 2012
Proposal to pay out a dividend of 0.3 euros per share
| 12 months to 31 December In million euros |
2011 | 2010 | Change |
|---|---|---|---|
| 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.
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.
| 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% |
| Current EBIT | 61.5 | 46.4 | +32.5% |
|---|---|---|---|
| Income from dissimilar barters | 0.3 | (0.3) | -200% |
| Current EBIT excluding dissimilar barters | 61.2 | 46.7 | +31.0% |
| Other business | (1.1) | (2.4) | -54.2% |
| Broadcasting | 8.2 | 6.5 | +26.2% |
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:
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, 03:00-27:00
(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
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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