Lagardère posts a resilient performance in the first quarter of 2020
Revenue at €1,361 million, down 12.5% like for like(1)
in the wider context of the Covid-19 health crisis
Lagardère Publishing reports revenue growth in the United States
Lagardère Travel Retail down 18% like for like
The Group is taking firm corrective action to mitigate the impacts of the crisis
Revenue fell 12.5% in first-quarter 2020, mainly as a result of the impacts of the Covid-19 crisis on Lagardère Travel Retail’s operations from mid-February, and despite a good performance at Lagardère Publishing for the first two months of the quarter.
Target scope highlights(2) (like-for-like basis):
- Lagardère Publishing: the drop in revenue (down 3.3%) is mainly attributable to France following the closure of most points of sale in the second half of March owing to the health crisis.
However, the business delivered growth in the United States, buoyed by good momentum in digital formats and by the success of The Witcher series.
- Lagardère Travel Retail: the decrease in revenue (down 18.0%) for the first quarter was attributable to the impacts of the Covid-19 pandemic as from mid-February. These were initially felt in China, where the virus first emerged, and Asia-Pacific, before spreading to its operations around the world and leading to strict confinement measures and the gradual closure of many airports and railway stations, along with an unprecedented collapse in passenger traffic.
Group revenue totalled €1,361 million versus €1,520 million in first-half 2019, representing a decrease of 10.4% on a consolidated basis and of 12.5% like for like.
The difference between consolidated and like-for-like revenue is attributable to a €13 million favourable foreign exchange effect resulting chiefly from the appreciation of the US dollar and pound sterling. The €14 million positive scope effect is mainly due to the acquisition of International Duty Free in Belgium, partly countered by the disposal of TV channels and digital activities as part of the Lagardère group’s strategic refocusing.
(1) Alternative performance indicators. See the glossary at the end of this press release.
(2) Lagardère Publishing, Lagardère Travel Retail, Lagardère News (Paris Match, Le Journal du Dimanche, Europe 1, Virgin Radio, RFM, the Elle brand licence), the Entertainment business, the Group Corporate function and the Lagardère Active Corporate function, whose costs are being wound down by end 2020.
Created in 1992, Lagardère is an international group with operations in more than 40 countries worldwide. It employs over 30,000 people and generated revenue of €7,211 million in 2019.
In 2018, the Group launched its strategic refocusing around two priority divisions: Lagardère Publishing (Book and e-Publishing, Mobile and Board games) and Lagardère Travel Retail (Travel Essentials, Duty Free & Fashion, Foodservice).
The Group’s operating assets also include Lagardère News and Lagardère Live Entertainment.
Lagardère shares are listed on Euronext Paris.
Some of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management’s beliefs. These statements reflect such views and assumptions prevailing as of the date of the statements and involve known and unknown risks and uncertainties that could cause future results, performance or future events to differ materially from those expressed or implied in such statements.
Please refer to the most recent Universal Registration Document (Document d’enregistrement universel) filed in French by Lagardère SCA with the Autorité des marchés financiers for additional information in relation to such factors, risks and uncertainties.
Lagardère SCA has no intention and is under no obligation to update or review the forward-looking statements referred to above. Consequently Lagardère SCA accepts no liability for any consequences arising from the use of any of the above statements.