Earnings Release • Mar 19, 2013
Earnings Release
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Paris, 19 March 2013
| 12 months to 31 December | 2012 | 2011 | Change |
|---|---|---|---|
| In million euros | |||
| Revenues excluding dissimilar barters | 393.0 | 377.5 | +4.1% |
| Revenues including dissimilar barters | 397.3 | 382.7 | +3.8% |
| Current EBIT excluding dissimilar barters | 63.5 | 61.2 | +3.8% |
| Current EBIT | 62.9 | 61.5 | +2.3% |
| Net income (Group share) | 37.1 | 45.6 | -18.6% |
| In million euros | 31 Dec 2012 | 31 Dec 2011 | Change |
| Net cash position* | 82.9 | 94.3 | -12.1% |
| Shareholders' equity (Group share) | 497.2 | 482.0 | +3.2% |
* Current cash net of current and non-current financial liabilities
In 2012, although the advertising market in France contracted, NRJ GROUP achieved growth in its current EBIT. This outstanding performance, in view of the difficult economic environment, reflects the following:
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• Solid growth in current EBIT for towerCast, the Group's broadcasting subsidiary.
In this context, current EBIT excluding dissimilar barters totalled 63.5 million euros in 2012, compared with 61.2 million euros in 2011. Excluding losses linked to the launch of CHÉRIE 25, current EBIT excluding dissimilar barters is up 10.8% to 67.8 million euros.
After factoring in income from dissimilar barters, current EBIT came to 62.9 million euros in 2012, up 2.3% in relation to the 61.5 million euros recorded in 2011.
1 Revenues excluding dissimilar barters
2 Current EBIT excluding dissimilar barters and excluding CHÉRIE 25
After taking into consideration negative non-current operating income and expenses for 1.1 million euros, as well as the 1.1 million euros in financial income, the 24.7 million euro income tax charge, the share in negative income from affiliates for 0.4 million euros, and a share attributable to minority interests for 0.7 million euros, net income Group share came to 37.1 million euros in 2012, compared with 45.6 million euros in 2011, down 18.6%, primarily due to the higher tax charge.
The net cash position at 31 December 2012 came to 82.9 million euros, down 11.4 million euros compared with 31 December 2011, primarily due to the increase in working capital requirements, linked mainly to the acquisitions of TV programmes, investments focused in particular on the broadcasting business and audiovisual resources for TV, as well as NRJ GROUP dividend payments for 2011.
In view of the persistently difficult economic climate at the start of 2013, the Group considers that it needs to retain all its financial capabilities in order to secure its development on national television and broadcasting, while ensuring it is able to capitalise on any opportunities for external growth, including in its core radio business. As a result, the Board of Directors will be submitting a proposal at the general shareholders' meeting on 28 May to not pay out any dividend for 2012. The Board will besides submit at the general meeting to authorize the implementation of a new share buyback program.
| 12 months to 31 December - in million euros | 2012 | 2011 | Change |
|---|---|---|---|
| Music Media and Events | 202.7 | 214.6 | -5.5% |
| Television | 83.5 | 77.7 | +7.5% |
| International Business | 42.7 | 40.0 | +6.8% |
| Shows and Other Productions | 15.2 | 3.1 | +390.3% |
| Broadcasting | 48.9 | 42.1 | +16.2% |
| Revenues excluding dissimilar barters | 393.0 | 377.5 | +4.1% |
| Dissimilar barters | 4.3 | 5.2 | -17.3% |
| Revenues including dissimilar barters | 397.3 | 382.7 | +3.8% |
| 12 months to 31 December - in million euros | 2012 | 2011 | Change |
| Music Media and Events | 48.1 | 53.4 | -9.9% |
| Television | (5.3) | (1.7) | +211.8% |
| International Business | 4.0 | 0.7 | +471.4% |
| Shows and Other Productions | 4.4 | 1.7 | +158.8% |
| Broadcasting | 12.7 | 8.2 | +54.9% |
| Other Business | (0.4) | (1.1) | -63.6% |
| Current EBIT excluding dissimilar barters | 63.5 | 61.2 | +3.8% |
| Operating income from dissimilar barters | (0.6) | 0.3 | -300% |
| Current EBIT | 62.9 | 61.5 | +2.3% |
In 2012, in a difficult advertising market, the Music Media and Events division generated 202.7 million euros in revenues, compared with 214.6 million euros in 2011, down 5.5%.
Set against a reduction in costs for the division, current EBIT excluding dissimilar barters came to 48.1 million euros at 31 December 2012 for the Music Media and Events division, while the current operating margin remained high, coming in at almost 24%.
The latest radio audience measurement wave for November-December 2012, published by Médiamétrie at the start of 2013, has confirmed the strong rate of audience growth for NRJ's station, attracting 6,195,000 daily listeners3 . On a yearly basis, the station was once again the quickest-growing radio station in terms of audience shares, while recording its 10th consecutive wave of year-on-year growth4 .
The Group is actively working on the audiences for its other stations, and this approach is starting to deliver benefits for the CHERIE FM station, with all its audience indicators progressing over one year5 . Overall, with the stations NOSTALGIE and RIRE & CHANSONS, the NRJ GROUP is listened to by more than 12 million people each day.
3 Sources: Médiamétrie 126,000 Radio, November-December 2012, Monday to Friday, 5am-midnight, 13 year olds and over - aggregate audience
4 Sources: Médiamétrie 126,000 Radio, November-December 2012, Monday to Friday, 5am-midnight, 13 year olds and over - annual audience share growth
5 Sources: Médiamétrie 126,000 Radio, November-December 2012, Monday to Friday, 5am-midnight, 13 year olds and over - annual growth in aggregate audience, audience share, listening time and quarter of an hour average
In the Television business, revenues climbed 7.5% from 77.7 million euros in 2011 to 83.5 million euros in 2012, despite a difficult advertising market.
In 2012, the Group continued to develop strongly on the free national television market.
In terms of audience shares, on average over 2012, NRJ12 confirmed its position as the number three new DTTV channel for all audiences combined, while significantly developing its strong commercial position, achieving the highest annual increases in audience shares on the key commercial targets, all channels combined, including a 3.0% audience share on the target for women under 50 in charge of purchases in 20126 . In December 2012, the Group also successfully launched CHÉRIE 25, its second free national channel, and is now able to offer, for the first time in France on free national television, a channel devoted exclusively to women. The
channel's first audience results, published in March 2013, are particularly encouraging, with 60% of the channel's audience made up of women aged 15 and over, and a 0.4% audience share on women under 50 in charge of purchases7 .
Alongside this, the Group has continued to record good audience scores for its channels: NRJ HITS, the number one cable, satellite and ADSL music channel8 , and NRJ PARIS, the strongest-growing channel in the Paris Region, with its audience increasing by 48% over one year and climbing to record levels9 .
The Television division saw its costs rise in 2012, in line with growth in the business, ongoing investments in NRJ 12's programming schedule, set against the strengthening of the channel's identity productions, and costs relating to the launch of CHÉRIE 25 in December 2012.
Overall, in light of the slowdown in revenue growth in a difficult market environment, combined with the increase in operating expenses, the Television division recorded a current operating loss excluding dissimilar barters of 5.3 million euros in 2012, compared with a 1.7 million euro loss in 2011. Excluding losses linked to the launch of CHÉRIE 25, the Television division's loss comes out at 1.0 million euros, versus 1.7 million euros in 2011. The national channels division (NRJ 12 + NRJ HITS) generated 0.3 million euros in current EBIT excluding dissimilar barters for 2012, after breaking even in 2011, while NRJ PARIS posted a 1.3 million euro loss in 2012, compared with a loss of 1.7 million euros in 2011.
The International Business division's revenues totalled 42.7 million euros in 2012, compared with 40.0 million euros in 2011, up 6.8% (+6.8% on a comparable basis and at constant exchange rates), driven by revenue growth in Germany, Belgium and Finland.
Faced with a slight drop in operating expenses for the division overall and an increase in revenues, current EBIT excluding dissimilar barters came to 4.0 million euros in 2012, compared with 0.7 million euros in 2011, giving an increase of over 471%. More specifically, this strong growth factors in a clear improvement in current EBIT excluding dissimilar barters for the German-speaking region, within which Germany's current EBIT excluding dissimilar barters came in positive at 0.5 million euros.
The Shows and Other Productions division achieved very strong revenue growth, up 390.3% from 3.1 million euros in 2011 to 15.2 million euros for 2012, primarily reflecting the success of the musical "1789 Les Amants de la Bastille". Excluding the musical, the division's revenues are up 22.6%.
The division's current EBIT excluding dissimilar barters climbed to 4.4 million euros in 2012, compared with 1.7 million euros in 2011. This significant progress reflects not only the musical's success, but also the increase in current EBIT excluding dissimilar barters for the music label, which is continuing to grow.
The Group's Broadcasting business has continued to see strong growth in its revenues, in line with its development on the DTTV and FM broadcasting market. It contributed 48.9 million euros to consolidated revenues in 2012, compared with 42.1 million euros in 2011, up 16.2%.
In view of the activity's development, operating expenses are up, notably as a result of an increase in broadcasting costs and depreciation charges.
In total, the Broadcasting division achieved 25.4 million euros in EBITDA10 in 2012, compared with 18.6 million euros in 2011, while current EBIT excluding dissimilar barters came in at 12.7 million euros for 2012, up 54.9% from 8.2 million euros in 2011.
6 Médiamétrie Médiamat, 2012, Monday to Sunday, 03:00-27:00, extrapolated average rate and audience share, 4 year olds and over and targets mentioned, NRJ12
7 Médiamétrie, Médiamat, CHERIE 25, consolidated audiences from 31 December 2012 to 3 March 2013, Base 4+ with CHERIE 25, Monday to Sunday, 03:00-27:00, extrapolated average rate, audience share and average rate structure 8
Médiamétrie, Médiamat'Thématik, consolidated audience, Wave 23, Monday to Sunday, 03:00-27:00, 4 year-olds and over
9 Médiamétrie, local TV survey, September-December 2012, base 15+equipped with TV in Paris Region, annual growth: September-December 2012 vs September-December 2011 in quarter of an hour average
10 Current EBIT excluding dissimilar barters before depreciation and provisions
Current EBIT excluding dissimilar barters for the Other Business division, which includes income and expenses relating to management and transfer-costing for support functions, shows a loss of 0.4 million euros for 2012, compared with a 1.1 million euro loss in 2011.
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In an environment that is still uncertain in 2013, the Group is confident that it will be able to continue developing its business, and more specifically:
To date, advertising revenues for media activities in France (radio, internet and television) over the period from January to February 2013 have come in higher than the same period in 2012.
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The NRJ GROUP's corporate and consolidated financial statements for 2012 were approved by the Board of Directors on 19 March 2013. 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.
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 releasing its first-quarter financials on 23 April 2013 (press release published after close of trading on the Paris stock exchange) The Group will be holding its general meeting on 28 May 2013 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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