NRJ : Annual results 2016

Paris, March 16, 2017 - 5.45 pm

2016 annuals results

The NRJ Group Board of Directors held on March 16, 2017, and chaired by Jean-Paul Baudecroux, approved the 2016 annual accounts.

In 2016, NRJ Group generated revenue(1) of €369.8 million, down slightly (2.1%) compared with fiscal year 2015.

Revenue for Media activities(3) was flat over the year, and that of the Broadcasting segment declined due to the early termination of its broadcasting contracts (multiplexes R5 and R8), related to the transfer of the 700 MHz band to mobile telephone operators.

For fiscal year 2016, EBITDA excluding dissimilar barters* totalled €53.5 million, a slight decline of 2.6%. Current operating profit(1) excluding the Broadcasting segment reached €16.1 million, up more than 36%.

Operating profit was €42.8 million compared with €28.4 million a year earlier. This included €13.9 million of non-recurring income which corresponds to the impact, net of expenses, of the compensation received by the Group for damages following the early termination of multiplexes R5 and R8, related to the transfer of the 700 MHz band to mobile telephone operators.

Consolidated net profit Group share was thus €33.7 million, a marked increase of 49.1%.

At 31 December 2016, the Group posted a net cash surplus** of €159.6 million, down €8.9 million compared with 31 December 2015. This decrease is mainly due to the payment of €27.6 million following the tax audit initiated in March 2013 covering the exit from the Consolidated Global Profit Tax System (Bénéfice Fiscal Consolidé) (2010 tax return). A provision had been made for this tax audit in the accounts for the 2013 fiscal year. The Group filed a complaint at the end of December 2016.

Change

In m illions of euros 2016 2015

®Restated after aggregation of the "Music Media and Events" and "Shows and Other Productions" segments into a single operating segment.

MUSIC, MEDIA AND EVENTS (MME): AN ATYPICAL ENVIRONMENT

Fun Radio's large-scale campaign, which had been ongoing since at least September 2015, impacted negatively on the audience figures for NRJ Group stations for the whole of 2016, and weighed on the Group's 2016 radio revenue for all its commercial activities. The Paris Commercial Court(2) and the Paris Court of Appeal(2) concluded that the messages broadcast through Fun Radio constitute manipulation of the audience measurement process. In the view of the NRJ Group, the restatement method used by Médiamétrie does not properly correct the residual effects of these practices on the radio audience figures.

The MME segment posted revenue(1) of €193.5 million in 2016, down 1.9% compared with 2015.

With revenue growth of more than 16%, digital activities continued to make a marginal contribution to the current operating profit(1) of the MME segment, considering the strengthening of editorial and technical means provided to this activity.

The segment's current operating profit(1) therefore stood at €32.6 million in 2016 versus €38.0 million in 2015 due to a decrease in radio revenue and the strengthening of support functions.

TELEVISION: A REDUCTION IN CURRENT OPERATING LOSS(1)

In a highly volatile advertising market, revenue(1) for the Television segment, driven by higher audience figures both across the entire viewing public and for all commercial targets, was up 3.1% at €85.6 million.

Over the year, the TV segment saw its audience grow by 12% (+0.3 pp), reaching a record share of the total audience of 2.8%(4) in 2016, up from 2.5%(4) in 2015. Overall, the Group had more than 41 million viewers(5) each month, thanks to two complementary channels with a weekly offering of original magazine shows, films and a range of unreleased series.

In 2016, the TV segment's current operating loss(1) stood at €28.6 million, an improvement of 22.9% compared with fiscal year 2015, mainly due to higher audiences, the optimisation of the cost of programmes management and the decrease in DTT broadcasting expenses.

INTERNATIONAL ACTIVITIES

In 2016, revenue(1) for the Group's international activities was €35.5 million, up 3.8%.

The 5.7% increase in current operating profit(1) to €11.2 million is mainly due to an improvement in Germany.

BROADCASTING

The Broadcasting segment recorded revenue(1) of €55.2 million, a decline of 12.8%, due to the early termination of its broadcasting contracts (multiplexes R5 and R8).

The direct impact of this reduction in activity, which was partly offset by good cost control, led to a current operating profit(1) for the Broadcasting segment of €13.0 million in 2016, down 24% compared with 2015.

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The Board of Directors will propose to the General Shareholders' Meeting on 18 May that no dividend is paid for fiscal year 2016. It will also propose that the General Shareholders' Meeting authorises a new share buyback programme.

MME: in 2017, the Group will focus on its editorial fundamentals in radio (programmes, games, events, communication and musical research) to develop the identity and complementarity of its four brands to further improve proximity and affinity with its listeners, in particular millennials.

The roll out of the NRJ Play and NRJ Active websites, as well as the use of its Data Management Platform (DMP) will drive the growth of the Group's digital activities.

Television: the Group's objectives are to strengthen NRJ 12's fundamentals (an innovative, different channel, in tune with millennials, entertaining, feel good and daring) by proposing more attractive content and to continue, with Chérie 25, with the positive trends observed in recent months. The level of investments in programmes will be maintained for NRJ 12 and Chérie 25.

Broadcasting: 2017 activity will be impacted by the full-year impact of the early termination of its broadcasting contracts (multiplexes R5 and R8). The objective is to gain market share, in particular for FM.

The consolidated accounts have been audited. The audit report on these financial statements is currently being prepared.

The 2016 Registration Document should be available on the Group's website www.nrjgroup.fr, by 31 March 2017 at the latest.

Next release: Financial information for the 1st quarter - on May 9, 2017, after close of trading.

* EBITDA: Current Operating Profit excluding dissimilar barters transactions before amortisation and impairment of tangible and intangible assets and before net change in provisions recorded in the Current Operating Profit but after current depreciation on current assets. The caption "Net change in provisions" excludes reversals used which are credited to the same line as that used for the expenditures incurred.

** Net cash surplus: Cash and cash equivalents net of outstanding bank overdrafts and net of borrowings. Borrowings amounted to 12.7 million as at December 31, 2016.

Notice: Some of the information contained in this financial release may be provisional. This information reflects either trends or objectives and cannot be taken as a forecast of results or of any other performance indicator. By its very nature, such information is subject to risks and uncertainties which may, in certain cases, be beyond the Company's control. More details on these risks and uncertainties can be found in the Company's Registration Document, which is available on its website (www.nrjgroup.fr) in the "Finances/ Publications financières/ Rapports financiers" section.

Sources:

(1) Excluding dissimilar barters.

(2) Ruling of the Paris Commercial Court (Tribunal de commerce de Paris) of 12 July 2016 (RG 2016042716) and judgement of the Paris Court of Appeal (Cour d'appel de Paris) of 20 September 2016, RG 16/42716.

(3)The Media business includes the MME, Television and International Activities segments.

Sources: Médiametrie-Médiamat, aged 4 years +, Monday to Sunday, 3h-27h.

(4)(NRJ 12 + Chérie 25), Audience share, Day of viewing, Annual change, 2016 vs 2015.

(5)(NRJ 12 + Chérie 25), Monthly coverage 2016.

NRJ GROUP is one of France's leading private media groups in the publishing, production and broadcasting sectors and also markets its own media spaces.

In France, the Group tops the private radio market with its four brands (NRJ, CHERIE FM, NOSTALGIE and RIRE & CHANSONS), is a significant player on the television market where it operates and develops two free national channels (NRJ 12 and CHERIE 25) and a paying channel (NRJ HITS, the number 1 cable-satellite-ADSL music channel) and, through its subsidiary towerCast, ranks number two on the French broadcasting market. Backed by its strong brands, marketing expertise and commercial performance, in recent years the Group has also developed a digital ecosystem enabling it to monitor and anticipate changes in the consumption of media via new delivery mechanisms, expanding its original brand portfolio through websites, mobile apps, multi-channel networks and more than 220 Internet radio stations. Today, NRJ Group is the number 1 Internet radio private group in France. This digital presence enables the Group's advertising business to provide its clients with a more targeted offering, thanks to the strategic data collected by the Group.

On the international market, the Group is present in 11 other countries, either directly or through NRJ/ENERGY, the number one international radio brand, and/or NOSTALGIE/NOSTALGIA licensing agreements.

NRJ GROUP shares are listed on the Euronext in Paris (compartment B). Codes - ISIN: FR000121691; Reuters: SONO.PA; Bloomberg: NRG FP.

NRJ GROUP - Investor Relations 46-50 avenue Théophile Gautier 75016 Paris - www.nrjgroup.fr Ghislaine Gasparetto - Actifin / Tel: + 33 1 56 88 11 22 / e-mail: ggasparetto@actifin.fr

NRJ GROUP, a public limited company with capital of 784,178.46 euros Head office: 22 rue Boileau 75016 Paris

332 036 128 RCS PARIS