Lagardere Third-Quarter Sales Down 4.4%

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 [e-mail]

Order free Annual Report for Vivendi SA

Visit http://djnweurope.ar.wilink.com/?ticker=FR0000127771 or call [phone]

Order free Annual Report for Lagardère SCA

Visit http://djnweurope.ar.wilink.com/?ticker=FR0000130213 or call [phone]

Order free Annual Report for Vivendi SA

Visit http://djnweurope.ar.wilink.com/?ticker=US92852T2015 or call [phone]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires