Fourth-quarter 2017 revenue Sustained revenue growth in 2017: 7,069 million, up 4.0% like-for-like(1)/(2) Fourth-quarter 2017: up 3.3% like-for-like at 1,911 million Lagard re confirms its recurring EBIT growth target(2) for 2017Download the press release in PDF
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Full-year 2017:
The Lagard re group delivered robust growth, fuelled mainly by organic growth at Lagard re Travel Retail and a strong performance from Lagard re Publishing.
Revenue totalled 7,069 million, up 4.0% like-for-like (down 4.4% on a consolidated basis).
The difference between like-for-like and consolidated figures is essentially related to a negative scope effect resulting from the divestment of Press Distribution operations by Lagard re Travel Retail, partly offset by acquisitions at Lagard re Publishing. The negative foreign exchange effect resulted primarily from the depreciation of the pound sterling and the US dollar.
Fourth-quarter 2017:
The Lagard re group ended the year with continued momentum in like-for-like growth, driven mainly by a robust performance from Lagard re Travel Retail.
Revenue for the Group came in at 1,911 million, up 3.3% like-for-like (down 3.7% on a consolidated basis). The difference between like-for-like and consolidated figures is primarily attributable to the divestment of Press Distribution operations by Lagard re Travel Retail. The foreign exchange effect for the period resulted chiefly from the US dollar and the pound sterling.
By division (like-for-like basis):
Lagard re Publishing: revenue was up 2.8%, buoyed mainly by a good performance from Partworks and by the success of best-selling titles in Illustrated Books and General Literature which offset an unfavourable comparison effect in the United Kingdom.
Lagard re Travel Retail: growth in business accelerated (up 10.3%), led by a favourable network impact, a strong sales momentum and a rise in passenger traffic, especially in the ASPAC and EMEA regions.
Lagard re Active: revenue was down 2.7%, hit by the decline in audience figures at the Europe 1 radio station and the downturn in TV Production activities, partly offset by a good performance from e-health and Magazine Publishing in the period.
Lagard re Sports and Entertainment: as expected, the 17.6% decline in revenue was mainly the result of the sporting calendar.
I- REVENUE AND ACTIVITY BY DIVISION
Lagard re Publishing Revenue for 2017 came in at 2,289 million, up 1.9% like-for-like (up 1.1% on a consolidated basis). The difference can be explained by (i) a 50 million negative foreign exchange effect due chiefly to the depreciation of the pound sterling, and (ii) a 33 million positive scope effect, primarily linked to the consolidation of Perseus in the United States and to the acquisitions of Brainbow and Bookouture in the United Kingdom.
Business growth in 2017 was mainly driven by the good performance from Partworks (up 8.8%), particularly in Argentina and Japan, and by gains in France (up 3.4%), which was boosted by the success of best-selling titles (including Ast rix et la Transitalique and Dan Brown s Origin), by a record year for Le Livre de Poche paperbacks and by the success of textbook publishers amid curricular reform.
These positive factors helped offset the unfavourable comparison effect resulting primarily from the success of Harry Potter and the Cursed Child in the United Kingdom and Spain s curricular reform in 2016.
Fourth-quarter 2017:
At 624 million and despite an unfavourable comparison effect, revenue moved up 2.8% like-for-like (up 0.8% on a consolidated basis). The difference between like-for-like and consolidated figures chiefly reflects a 19 million negative foreign exchange effect and a 7 million positive scope effect.
The figures below are presented on a like-for-like basis.
In France (up 11.0%), business was chiefly buoyed by the success of best-selling titles in Illustrated Books (Ast rix et la Transitalique) and in General Literature (Dan Brown s Origin). Business in France was also driven by a good performance in Distribution.
In the United States, the 3.6% rise in business reflects a good performance from Little, Brown Adult s books spurred by the success of Pete Souza s Obama: An Intimate Portrait, and from Nashville, buoyed by sales of William Paul Young s The Shack series.
As expected, business continued to contract in the United Kingdom, declining 14.3% on the back of an unfavourable comparison effect, with fourth-quarter 2016 having been boosted not only by the release of Fantastic Beasts, but also by the restocking of Harry Potter and the Cursed Child and a spike in sales of the The Famous Five series.
The Spain/Latin America region delivered a 1.7% revenue growth, notably thanks to the success of Ast rix.
Partworks posted bullish 7.3% growth, fuelled by a busy programme of new title launches and a good backlist performance, especially in Argentina and Japan.
E-books accounted for 7.1% of total Lagard re Publishing revenue in fourth quarter 2017, versus 7.6% in fourth-quarter 2016.
Lagard re Travel Retail 2017 revenue totalled 3,412 million, up 9.1% like-for-like (down 7.7% on a consolidated basis). The difference essentially reflects a 9 million negative foreign exchange effect and especially a 556 million negative scope effect, breaking down as follows:
a 576 million negative impact from deconsolidations, essentially relating to the divestment of Press Distribution activities in Belgium, Hungary, Canada and Spain;
a 20 million positive impact from acquisitions, relating mainly to the acquisition of Duty Free operations in Poland and Estonia.
Fourth-quarter 2017:
Revenue for the division totalled 866 million, up 10.3% like-for-like (down 4.9% on a consolidated basis). The difference between these two figures reflects a 107
