NRJ Groupe Withdraws From Denmark Operation

Michael Hedges August 1, 2004

NRJ Groupes Denmark operation, two frequencies in Copenhagen and the smallest of its Nordic investments, shuts down in June.

The company will take a 1.5 million euro charge against first half 2004 earnings to avoid, according to company a spokesperson, a 1.2 million euro annual loss. The licenses were acquired in 2001.

The late April announcement underscored the company’s struggle with low ad revenue and high costs in Scandinavia. One observer close to the Denmark operation who asked not to be identified said, “It was never going to be a winning situation.”

NRJ Groupe continues operate in Sweden and Finland. In May the company expanded in Austria with a majority acquisition of regional broadcaster KroneHit.

US broadcaster Clear Channel International relinquished their Danish stations to SBS Broadcasting in July 2003 after unsuccessful bids for national licenses. Talpa Radio International and Sky Radio were successful bidders. Most of the unsuccessful bidders for the remaining national licenses have now withdrawn from the market.

First quarter 2004 audience figures from TNS Gallup show s decreases for public broadcaster Danmarks Radio (DR), 65.9% market share from 67.1% in the same period 2003. Commercial radio increased year on year from 29.2% to 31.4%. DR local P4 stations continue to lead with 38.3% and national channel P3 with 17.7%. The leading commercial channel is Sky Radio with a 6.1 market share.

Previously published in Radio World International, August 2004