The value of the day in Paris - NRJ GROUP refocus on the media
NRJ Group flies from 14.45% to 6.81 euros after the announcement of its refocusing on media. NRJ Group envisages in particular to disengage from its activity broadcaster technical TowerCast, a decision expected by analysts. NRJ has undergone several quarters smoother victim of a difficult advertising market and losses in its policy of diversification in mobile telephony and television. The stock hit a historic low 5.30 euros, February 12, after losing 47.6% in 2007.
This shift is part of a plan called "NRJ 2010" which was adopted on January 25 by the board of the group.
"We plan to open the capital of our technical broadcaster, TowerCast, a group of nuggets. We would even be willing to become a minority if that is a potential buyer wanted," said Marc Pallain, chairman of the board of the group In an interview with "Echoes".
In addition, NRJ Group wants to reduce its exposure in three countries: Finland, Austria and, above all, Germany. "These three countries account for almost two thirds of our revenues in the international and, more importantly, deficit," said Marc Pallain. The activities in Belgium and Switzerland, which is profitable, would be maintained.
The plan also provides cost-saving measures: "20 million euros per year by 2010, the bulk of which will be reached in 2009," said the leader of the company. One analyst in Paris said that he was not so much to cut costs by $ 20 million to limit their progress. NRJ Group said to have taken such measures due to uncertainty over the situation in the advertising market this year. For radio, in January was "bad like the market, in February will be roughly stable, but promises to be cautious in March," said Chief Executive of the group. By contrast, the television advertising revenue in January and February have tripled and the Internet has almost doubled in January.
NRJ plans to continue its diversification into television and the Internet. Questioned about the acquisition of Internet companies, Marc Pallain said: "This is a line of thought. We could spend a few tens of millions of euros, but we will remain cautious and do not surpayerons."
ACTIVITY OF THE COMPANY
NRJ Group is a leading radio groups in Europe with four radio stations in France (NRJ, Nostalgie, Cherie FM and laughs and songs). In Europe, the group maintains a presence in 8 countries: Austria, Belgium, Denmark, Finland, Norway, Sweden and Switzerland. Its subsidiary Towercast (relay towers) disseminates on FM radio stations some of which the group. The group also owns a business advertising. Finally, NRJ Group has diversified into DTT (digital terrestrial television), with the chain NRJ 12, but also in mobile telephony, NRJ Mobile.
In late February, NRJ Group has announced its intention to open the capital of TowerCast and reduce its exposure in three countries: Finland, Austria and, above all, Germany.
STRENGTHS AND WEAKNESSES IN THE VALUE
The strong points of the value
-- The group has a strong brand that can ebb and flow in different activities. NRJ The brand is best known by the "young".
-- NRJ Group has the capacity to make acquisitions, and could be paid in shares without control of the group was under threat.
The weak points of the value
- The new group's activities (telephone and television) will bring longer time than expected to break even.
-- The radios are now musical competition from Internet and mobile music (mobile phones, digital music players), they see their audience decline poll after poll.
-- The low floating may limit the attractiveness of title with investors.
-- The opening for television advertising sectors prohibited, including distribution since January 2007, depriving the group of advertising revenue.
HOW TO MONITOR THE VALUE
-- NRJ Group, as advertising as as a medium, is sensitive to changes in the advertising market. However, the radio has a notable advantage over television, to the extent that the preparation of an advertisement is extremely fast, and allows the media to take advantage of any turnaround in the economy.
-- In addition, the stock-market price is likely to react positively or negatively to any new poll audience
This shift is part of a plan called "NRJ 2010" which was adopted on January 25 by the board of the group.
"We plan to open the capital of our technical broadcaster, TowerCast, a group of nuggets. We would even be willing to become a minority if that is a potential buyer wanted," said Marc Pallain, chairman of the board of the group In an interview with "Echoes".
In addition, NRJ Group wants to reduce its exposure in three countries: Finland, Austria and, above all, Germany. "These three countries account for almost two thirds of our revenues in the international and, more importantly, deficit," said Marc Pallain. The activities in Belgium and Switzerland, which is profitable, would be maintained.
The plan also provides cost-saving measures: "20 million euros per year by 2010, the bulk of which will be reached in 2009," said the leader of the company. One analyst in Paris said that he was not so much to cut costs by $ 20 million to limit their progress. NRJ Group said to have taken such measures due to uncertainty over the situation in the advertising market this year. For radio, in January was "bad like the market, in February will be roughly stable, but promises to be cautious in March," said Chief Executive of the group. By contrast, the television advertising revenue in January and February have tripled and the Internet has almost doubled in January.
NRJ plans to continue its diversification into television and the Internet. Questioned about the acquisition of Internet companies, Marc Pallain said: "This is a line of thought. We could spend a few tens of millions of euros, but we will remain cautious and do not surpayerons."
ACTIVITY OF THE COMPANY
NRJ Group is a leading radio groups in Europe with four radio stations in France (NRJ, Nostalgie, Cherie FM and laughs and songs). In Europe, the group maintains a presence in 8 countries: Austria, Belgium, Denmark, Finland, Norway, Sweden and Switzerland. Its subsidiary Towercast (relay towers) disseminates on FM radio stations some of which the group. The group also owns a business advertising. Finally, NRJ Group has diversified into DTT (digital terrestrial television), with the chain NRJ 12, but also in mobile telephony, NRJ Mobile.
In late February, NRJ Group has announced its intention to open the capital of TowerCast and reduce its exposure in three countries: Finland, Austria and, above all, Germany.
STRENGTHS AND WEAKNESSES IN THE VALUE
The strong points of the value
-- The group has a strong brand that can ebb and flow in different activities. NRJ The brand is best known by the "young".
-- NRJ Group has the capacity to make acquisitions, and could be paid in shares without control of the group was under threat.
The weak points of the value
- The new group's activities (telephone and television) will bring longer time than expected to break even.
-- The radios are now musical competition from Internet and mobile music (mobile phones, digital music players), they see their audience decline poll after poll.
-- The low floating may limit the attractiveness of title with investors.
-- The opening for television advertising sectors prohibited, including distribution since January 2007, depriving the group of advertising revenue.
HOW TO MONITOR THE VALUE
-- NRJ Group, as advertising as as a medium, is sensitive to changes in the advertising market. However, the radio has a notable advantage over television, to the extent that the preparation of an advertisement is extremely fast, and allows the media to take advantage of any turnaround in the economy.
-- In addition, the stock-market price is likely to react positively or negatively to any new poll audience
posted by news of france at
3:29 AM
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