French media group Lagardère (LGDDF.PK) reported that its first-quarter net sales increased 3% to 1.627 billion euros from last year's 1.579 billion euros, while it rose 2.3% on a like-for-like basis.
The differential between reported and like-for-like performance was attributable to a negative foreign exchange effect (of negative 8.3 million euros), associated primarily with the decrease in the British pound and the Japanese yen, and to the favourable scope effect (of positive 20.3 million euros) due essentially to acquisitions performed in 2012.
Lagardère Publishing's first-quarter net sales was 419 million euros, up 6.6% on a reported basis and up 7.9% on a like-for-like basis. Business activity was being driven by the impressive performance of General Literature, primarily in France and in the United States, as well as by Partworks.
Lagardère Active's first-quarter net sales was 222 million euros, up 6.9% on a reported basis and up 1.6% on a like-for-like basis, due to very strong performance by TV Production, which offset the negative direction of the advertising market and the continuing downtrend in magazine circulation
Lagardère maintained its 2013 outlook. Recurring EBIT before associates from Media activities is expected to grow between 0% and 5% compared to 2012 at constant exchange rates. This target is based on an expected decline in advertising sales of about 5% to 7% at Lagardère Active.
The company said the Group's financial position remains sound. A substantial improvement in gearing, net debt-to-equity, ratios and financial leverage (net debt-to-EBITDA) ratios is expected this year due to lower indebtedness as a result of the disposal of EADS shares.
For comments and feedback: editorial@rttnews.com