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Turnover 2006
2006 turnover up 14.2%
NRJ GROUP's turnover for the 2006 financial year amounted to 396.4m Euros, up 14.2% on 2005. This performance includes, on the one hand, a slight decrease across all radio activity (France and International), and on the other hand, strong growth in the Group's other activities, in particular television and telephony as part of the global multi-channel strategy implemented by the Group.
The Group's fourth quarter turnover amounted to 117.1m Euros, a 4% increase over the same period in 2005.
In a radio advertising market that was somewhat flat, turnover for radio in France remained stable both for the fourth quarter (-0.1%) and over the whole of 2006 (-0.5%).
2006 turnover for international radio activity was down 7.3% on 2005. This is mainly accounted for by a drop in activity in the German-speaking region over the last two quarters due to a reorganisation of the commercial management in this region.
NRJ 12's turnover amounted to 3.7m Euros in 2006, as against 1.3m Euros in 2005 (+186%). The channel brings in 6.8 million viewers each week (Médiamétrie Médiamat Couverture average weekly viewing figures for November 2006, based on a population of 4 yrs old and over initiated to NRJ 12).
NRJ Mobile has confirmed its status as a major player in the French MVNO market, having acquired more than 312,000 customers by 31st December 2006. NRJ Mobile's turnover amounted to 7.0m Euros for the fourth quarter of 2006 (+55%), and 24.3m Euros for the full year* (+438%).
* Includes 0.45m Euros for 118 333 directory enquiries activity, which was discontinued at the beginning of 2007.
Turnover for non-media activities increased by more than 76% to 60.3m Euros (+4% to 17.2m Euros for the fourth quarter), as a result not only of the confirmed success of the musical "Le Roi Soleil" ["The Sun King"], but also of strong performance in other non-media activities (internet, events, derived products and record label).
Finally, the Group's broadcasting activity continues to show strong growth in turnover (+57.2% in 2006 to 12.8m Euros). This is a result of increased activity following the launch of the initial phases of DTT (Digital Terrestrial Television) in France, and the first broadcasts of Radio France.
Recent performance
Advertising spend in January 2007 by the distribution sector, which has been allowed to advertise on television since 1st January, is currently down relative to January 2006. However, overall radio activity in France for this period is moderately down relative to the previous year. Continued caution is nevertheless necessary, and the consequences of this new environment on radio advertising spend by the distribution sector and other sectors will need to be assessed over the long term.
Furthermore, the Group continues to develop its other activities, in particular television and mobile telephony as part of its global multi-channel strategy.
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