By Ruth Bender
PARIS--Lagardere SCA (MMB.FR) Tuesday said third-quarter revenue
fell 4.4%, dragged down by slower sales across its publishing and
sports marketing divisions, but the owner of the Hachette
publishing house confirmed its full year targets.
Overall sales in the third quarter fell to 1.88 billion euros
from 1.96 billion euros ($2.52 billion from $2.62 billion) last
year, down 2.9% on an organic basis, which strips out currency
shifts, acquisitions and disposals.
Lagardere's book-publishing division, which publishes famous
writers such as Stephenie Meyer and J.K. Rowling, posted a 7.4%
drop in sales as the group sold fewer school books in France and
Spain and hit by unfavorable currency swings.
The sports marketing business posted a 8.4% fall in sales in the
quarter while the group's services unit, which includes travel
retail activities such as duty free, fell 2.5%.
Sales at Lagardere Active, which houses French magazines such as
Elle as well as radio stations, fell 2.7% in the quarter even
though advertising sales declined less sharply in the quarter than
in the previous quarters so far this year.
But the group said it expects earnings before interest and taxes
for its core media businesses to rise between 0% and 5%--despite an
assumption of a 7% decline in advertising revenue at its press and
broadcasting division this year.
Lagardere has been shedding different assets to focus on its
wholly-owned media businesses. Last month, the group agreed with
France's Vivendi SA (VIV.FR) for a deal to sell its 20% in French
pay TV unit Canal Plus France for EUR1.02 billion. Earlier this
year, Lagardere also made its long-promised exit from Airbus owner
European Aeronautic Defence & Space Co. (EAD.FR).
The group said its net debt-to-equity is set to decline
substantially at the end of the year, due to the sale of its stake
in Canal Plus France.
Write to Ruth Bender at ruth.bender@wsj.com
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