French media group Lagardère SCA (LGDDF.PK) Tuesday reported 3 percent increase in first-quarter net sales, while sales rose 2.3 percent on a like-for-like basis. The company also maintained its recurring EBIT target for Media activities in full-year 2013.
In the quarter, the company's net sales grew to 1.63 billion euros from 1.58 billion euros in the previous year. The difference between the reported and like-for-like performance reflected a negative foreign exchange effect of 8.3 million euros, and a favorable scope effect of 20.3 million euros due essentially to acquisitions performed in 2012, the firm noted.
In Lagardère Publishing, net sales increased 6.6 percent to 419 million euros on a reported basis. Like-for-like growth was 7.9 percent. The company noted that its business activity was driven by impressive performance of General Literature, primarily in France and in the U.S.
Lagardère Active's net sales were 222 million euros, up 6.9 percent on a reported basis and 1.6 percent like-for-like, due to solid performance by TV Production. Lagardère Services: net sales remained stable at 876 million euros, while, Lagardère Unlimited: net sales climbed 8.3 percent on a reported basis.
The company said the Group's financial position remains sound. A substantial improvement in gearing, net debt-to-equity, ratios and financial leverage ratios is expected this year due to lower indebtedness as a result of disposal of EADS shares.
On April 15, Lagardère announced the completion of the sale of EADS shares and received 2.283 billion euros for the disposal. The capital gain, net of taxes and transaction costs, was 1.8 billion euros.
Recurring EBIT before associates from Media activities is still expected to grow between 0 and 5 percent compared to 2012 at constant exchange rates. According to the company, this target is based on an expected decline in advertising sales of about 5 to 7 percent at Lagardère Active.
In Paris, Lagardere's shares are currently trading at 27.77 euros, up 0.38 percent, on a volume of 406,625 shares.
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