Lagardere Q1 sales up 8.9 pct as Time Warner Book offsets radio, press weakness

Lagardere Q1 sales up 8.9 pct as Time Warner Book offsets radio, press weakness

	Published : Thu, 10 May 2007 17:47 By : Agencies Print this Story

PARIS (Thomson Financial) - Lagardere SCA said first-quarter sales reached 1.908 bln eur, up 8.9 pct on an adjusted year-earlier figure of 1.752 bln, with the acquisition of Time Warner Book Group helping offsett weakness in its press and radio activities.

The quarterly sales were in line with the forecasts of brokers Exane BNP Paribas (1.897 bln eur) and Deutsche Bank (1.902 bln eur).

Like-for-like growth was 1.2 pct.

Lagardere said that has adopted the equity method for stakes it holds in other companies, which means that it no longer consolidates sales from these businesses, including aeronautics group EADS.

As a result, Lagardere has adjusted its year-earlier quarterly sales figure.

For the first quarter of this year, the Publishing division drove growth, recording a 29.2 pct jump in sales thanks to the consolidation of Time Warner Book Group, acquired in 2006. On a like-for-like basis, Publishing posted growth of 3.0 pct.

The other divisions all saw overall sales fall, with the Lagardere Active division suffering a 6.9 pct drop.

The unit was affected by difficulties in the magazines market, with Lagardere pointing to a 'gloomy' advertising trend and 'weak' circulation, with the exception of emerging markets.

The Active division was also weighed down by disposals in the broadcasting sector.

Elsewhere, Lagardere Services recorded a 1.4 pct drop in sales, with the company saying it continues to shift towards higher growth activties in retail and emerging markets.

The new Lagardere Sports unit, consolidated for the first time, posted sales of 113.4 mln eur.

Lagardere repeated its full-year guidance for a 3-7 pct rise in EBIT for its core media business.

The company said the outlook for Publishing is good, while the Active division faces have ry poor' visibility in radio and continues to refocus on selected markets as well as digital activities.

The group expects the Sports unit to have 'a good year'.

tfn.paris@thomson.com

gt/gp

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.