First-Quarter 2018 revenue Revenue up 5% like-for-like(1)/(2) to 1,555 millionThe Lagard re group confirms its recurring EBIT target(2) for 2018
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The Lagard re group delivered 5% growth in revenue for first-quarter 2018, fuelled by organic growth momentum at Lagard re Travel Retail and a good performance from Lagard re Publishing. This growth performance was achieved while working actively towards the Group s strategic redeployment.
By division (like-for-like basis):
Lagard re Publishing: a solid first quarter with growth of 2.9% driven by vigorous expansion in Partworks and good business momentum in the United States.
Lagard re Travel Retail strengthened its market position with revenue growth of 11% underpinned mainly by a good sales performance and network expansion in the ASPAC and EMEA regions.
Lagard re Active: revenue was virtually stable (down 0.9%), with the solid performance of TV Production operations, resilient TV channel activities and a limited contraction in Magazine Publishing, despite the decline at the Europe 1 radio station.
Lagard re Sports and Entertainment: as expected, the 14.3% decline in revenue was the result of an unfavourable calendar effect linked mainly to the non-occurrence of the 2017 Total Africa Cup of Nations and the 2017 Asian qualifiers for the 2018 FIFA World Cup.
Group revenue totalled 1,555 million for the quarter versus 1,533 million in first-quarter 2017(3), representing a rise of 5.0% like-for-like and of 1.5% on a consolidated basis.
The difference between consolidated and like-for-like revenue reflects a negative foreign exchange effect of 63 million, primarily attributable to the depreciation of the US dollar.
The positive 10 million scope effect essentially relates to acquisitions carried out by Lagard re Publishing, partially offset by the divestment of Press Distribution activities by Lagard re Travel Retail in Hungary.
I- REVENUE AND ACTIVITY BY DIVISION
Lagard re Publishing Revenue for the division totalled 442 million, up 2.9% like-for-like (up 0.5% on a consolidated basis). The difference between consolidated and like-for-like data is attributable to a negative 23 million foreign exchange effect resulting mainly from the depreciation of the US dollar and pound sterling, and a positive 12 million scope effect, due notably to the Group s 2017 acquisitions of Brainbow, Bookouture, Summersdale and Jessica Kingsley.
As in previous years, we emphasise that the first quarter traditionally makes a relatively low contribution to the year as a whole.
The figures below are presented on a like-for-like basis.
France had a positive start to the year (up 1.7%), particularly buoyed by Larousse, Le Livre de Poche paperbacks and Illustrated Books.
Business in the United States also delivered solid growth (up 5.4%), lifted by the continued success of the backlist, especially Pete Souza s Obama: An Intimate Portrait, and by a busy release schedule at Grand Central Publishing and Perseus.
Good business momentum in the United Kingdom (up 1.4%) was spurred by Michael Wolff s bestseller Fire and Fury at Little, Brown Book Group.
The Spain/Latin America region reported 4.3% growth, driven by Education in Spain (nursery school segment).
Partworks continued to enjoy vigorous growth (up 6.3%), fuelled mainly by the strong performance of France and Italy.
E-books accounted for 9.1% of total Lagard re Publishing revenue in first-quarter 2018, versus 10.0% in the same period in 2017.
Lagard re Travel Retail Revenue for the division totalled 802 million, up 11.0% like-for-like (up 5.2% on a consolidated basis). The difference between like-for-like and consolidated figures reflects a negative 36 million foreign exchange effect due mainly to the depreciation of the US dollar, and a negative 8 million scope effect, chiefly attributable to the divestment of Distribution activities in Hungary, partially offset by the consolidation of IFS Duty Free stores in Poland.
The figures below are presented on a like-for-like basis.
Business in France reported good momentum (up 2.1%), despite the negative impact of foreign exchange rates on spending by international passengers in the Duty Free segment. Growth was led mainly by the regional platforms, boosted by the modernisation of stores, particularly at Nice airport, as well as by a good performance from Foodservice activities.
The EMEA region (excluding France) posted further solid growth (up 15.6%), thanks notably to the impact of new stores opened in Geneva (Switzerland), Gdansk (Poland) and Dakar (Senegal), and to good sales performances in Eastern Europe.
North America reported further growth (up 1.7%), powered by upbeat momentum in Travel Essentials and Foodservice despite a negative network impact.
The Asia-Pacific region delivered robust growth (up 34.4%): Asia continued to benefit from the launch of the new Hong Kong concession and from good performances at fashion stores in China, while the Pacific region was buoyed by growth in the Duty Free segment in New Zealand.
Distribution activities, which were wholly divested on 7 February 2017, no longer contributed to division revenue in 2018.
Lagard re Active Revenue for the division totalled 208 million, down 0.9% like-for-like (up 0.9% on a consolidated basis). The difference between consolidated and like-for-like figures is mainly due to a positive scope effect of 4 million, primarily linked to the acquisition of Aito Media Group in October 2017.
The figures below are presented on a like-for-like basis.
Advertising revenues fell 5.6% year-on-year for the division as a whole.
The first quarter represents a fairly low proportion of annual advertising revenues.
The limited decline in Magazine Publishing (down 4.5%) reflected a fall in adv
