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NRJ Group

Earnings Release Nov 7, 2011

1560_10-q_2011-11-07_2103246b-69b2-4a7d-919b-fb3fb2ebd46a.pdf

Earnings Release

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7 November 2011

NRJ GROUP quarterly financial information as of 30 September 2011

Strong growth in advertising revenues in France in radio, Internet and television: +12.0% over the first 9 months

Group consolidated revenue of 266.5 million euros up by 12.5% over the first 9 months

rd quarter
3
Aggregate 9 months
in million euros 2011 2010 Change 2011 2010 Change
Music Media and Events 44.6 42.0 +6.2% 149.8 141.1 +6.2%
Television 16.0 12.3 +30.1% 56.1 42.2 +32.9%
International Business 9.5 8.3 +14.5% 28.5 25.4 +12.2%
Shows and Other Productions 0.5 0.2 +150.0% 1.4 3.6 -61.1%
Broadcasting 10.7 8.9 +20.2% 30.7 24.6 +24.8%
Revenues excluding dissimilar barters 81.3 71.7 +13.4% 266.5 236.9 +12.5%
Dissimilar barters 1.0 0.5 +100.0% 3.1 3.9 -20.5%
Revenues including dissimilar barters 82.3 72.2 +14.0% 269.6 240.8 +12.0%

Over the first 9 months of 2011, consolidated revenue (excluding dissimilar barter transactions) stood at 266.5 million euros against 236.9 million euros over the same period of 2010, up by 12.5%, including an increase of 13.4% over the 3rd quarter (+12.5% on a comparable basis and at constant exchange rates). This change reflects the impact of the end of the musical Cléopâtre following its final performances in January 2010. Excluding Cléopâtre, the Group's revenue growth comes out at 13.7%.

Revenue for pure Media business in France (radio, Internet and television) increased by 12.0% over the first 9 months of the year (including growth of +11.5% in the 3rd quarter).

***

During the first 9 months of 2011, revenue from the Music Media and Events division stood at 149.8 million euros against 141.1 million euros over the first 9 months of 2010, representing an increase of 6.2% (+6.2% in the 3rd quarter). This development includes an increase of 5.4% in Radio business in France over the first 9 months of 2011 (+5.7% in the 3rd quarter)

Concerning the radio stations, while the NRJ station confirmed the strong recovery in its audience in the summer(1), the Group set up new programme schedules after the holidays in September, in particular with new morning shows on NRJ, Nostalgie and Chérie FM and new programmes on Rire et Chansons. In September, the Group also set up 20 new frequencies in the Alsace and Lorraine regions for its four stations.

The Group is also continuing the development of its range of radio stations and web radio stations over the Internet and the mobile Internet: currently, NRJ GROUP offers a range of nearly 130 web radio stations accessible over the Internet or through applications on smart phones, nearly 4 million of which have been downloaded to date.

(1) Survey Médiamétrie 126,000 radio – period July-August 2011

In Television, revenue stood at 56.1 million euros over the first 9 months of 2011 compared to 42.2 million euros over the first 9 months of 2010, representing a very strong increase of 32.9% (+ 30.1% during the 3rd quarter) (2) .

According to recent surveys, the audience for NRJ 12 continues to increase satisfactorily: in September 2011, 8.8 million viewers watched NRJ 12 each day, giving it 2.4% of national audience share. The channel thus confirms its place as the n° 3 DTTV channel and has the strongest growth of the generalist channels.

Also, the Group wishes to emphasise the good audiences for its channels NRJ PARIS and NRJ HITS:

  • NRJ PARIS, the n° 1 local channel in the Paris regi on in the first half of 2011, with more than 1 million viewers daily.
  • NRJ HITS, the n° 1 musical channel in the Cable, Satellite and ADSL sector, with nearly 6.5 million viewers per month. NRJ HITS always has a 133% lead over its immediate competitor, MTV.

Revenue for the International Business division stood at 28.5 million euros over the first 9 months of 2011, against 25.4 million euros over the first 9 months of 2010, representing an increase of 12.2% (11.2% on a comparable basis and at constant exchange rates). During the 3rd quarter 2011, revenue increased by 14.5% compared to the 3rd quarter 2010 (+17.6% on a comparable basis and at constant exchange rates).

Revenue from the Shows and Other Productions division stood at 1.4 million euros on 30 September 2011, compared to 3.6 million euros on 30 September 2010, representing a drop of 61.1%. As a reminder, in 2010, the musical Cléopâtre contributed 2.6 million euros for its final performances given in January 2010.

Lastly, the Group's Broadcasting business continued its strong development, particularly in connection with the gradual phasing out of analogue broadcasting and the switch to "all digital" on television. Its contribution to consolidated revenue stood at 30.7 million euros over the first 9 months of 2011, compared to 24.6 million euros over the first 9 months of 2010, representing an increase of 24.8% (of which + 20.2% over the 3rd quarter).

Comment on the conditions for the constitution of the earnings in the third quarter 2011

During the 3rd quarter 2011, the Group's operating expenditure was up compared to the 3rd quarter 2010. This increase in expenditure is particularly related to the development of the Television and Broadcasting divisions and the increase in expenses for the Music Media and Events division. In total, the consolidated current operating income (excluding exchange transactions) increased between the 3rd quarter 2010 and the 3 rd quarter 2011.

Recent development and prospects.

Over October 2011, the Group recorded only a slight increase in its advertising income in France compared to October 2010.

Also, the Group wishes to emphasise that it will apply to the higher counsel for the audiovisual sector to create new free national DTTV channels.

Summary of important information communicated during the third quarter

Publication of revenue for the 1st half of 2011 (press release of 28 July 2011). Publication of results for the first half of 2011 (press release and provision of the financial report on 30 August 2011).

(4) Source Médiamétrie – Médiamat thématik campaign 21 from 3 January 19 June 2011 vs campaign 20 and campaign 19, Monday to Sunday 03:00 to 27:00 – coverage 4 weeks – 4 years and older

(2) Source Médiamétrie – Médiamat, consolidated audience, September 2011, audience share 4 years and over, TCE viewing only and audience share all channels excluding news channels

(3) Source Médiamétrie – Survey on local DTTV channels in Paris region January-June 2011 basis 15 years and older equipped with TV in Paris region

Quarterly and aggregate revenue (in millions of euros)

st QUARTER (3 months: January, February and March)
1
2011 2010 Change
Music Media and Events 46.9 43.2 +8.6%
Television 17.6 12.9 +36.4%
International Business 8.4 7.5 +12.0%
Shows and Other Productions 0.5 2.8 -82.1%
Broadcasting 9.4 7.7 +22.1%
Revenues excluding dissimilar barters 82.8 74.1 +11.7%
Exchanges 1.0 1.3 -23.1%
Revenues including dissimilar barters 83.8 75.4 +11.1%
nd QUARTER (3 months: April, May and June)
2
2011 2010 Change
Music Media and Events 58.3 55.9 +4.3%
Television 22.5 17.0 +32.4%
International Business 10.6 9.6 +10.4%
Shows and Other Productions 0.4 0.6 -33.3%
Broadcasting 10.6 8.0 +32.5%
Revenues excluding dissimilar barters 102.4 91.1 +12.4%
Dissimilar barters 1.1 2.1 -47.6%
Revenues including dissimilar barters 103.5 93.2 +11.1%
CUMULATIVE 6 months (6 months to 30 June) 2011 2010 Change
Music Media and Events 105.2 99.1 +6.2%
Television 40.1 29.9 +34.1%
International Business
Shows and Other Productions
19.0
0.9
17.1
3.4
+11.1%
-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%
rd QUARTER (3 months: July, August and September)
3
2011 2010 Change
Music Media and Events 44.6 42.0 +6.2%
Television 16.0 12.3 +30.1%
International Business 9.5 8.3 +14.5%
Shows and Other Productions 0.5 0.2 +150.0%
Broadcasting 10.7 8.9 +20.2%
Revenues excluding dissimilar barters 81.3 71.7 +13.4%
Dissimilar barters 1.0 0.5 +100.0%
Revenues including dissimilar barters 82.3 72.2 +14.0%
CUMULATIVE 9 months (9 months to 30 September) 2011 2010 Change
Music Media and Events 149.8 141.1 +6.2%
Television 56.1 42.2 +32.9%
International Business 28.5 25.4 +12.2%
Shows and Other Productions 1.4 3.6 -61.1%
Broadcasting 30.7 24.6 +24.8%
Revenues excluding dissimilar barters 266.5 236.9 +12.5%
Dissimilar barters 3.1 3.9 -20.5%
Revenues including dissimilar barters 269.6 240.8 +12.0%

The Group will publish its revenue for 2011 on 2 February 2012 (after closure of 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: 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 330 036 128 PARIS – Head office: 22 rue Boileau 75016 Paris

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