Sports Business: Lagardere reports 14.3% revenue loss in Q1

Lagardere Sports and Entertainment reports 14.3% revenue loss in Q1 - InsideSport
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Lagardere Sports, among the global leaders in the sports business and entertainment, has reported a substantial decline in its quarter 1 revenues for 2018.

The results for the sports and entertainment division of Lagardere Group is as expected, states as Company media release.

The company in the release has stated “The Lagardère group delivered 5% growth in revenue for first-quarter 2018, fuelled by organic growth momentum at Lagardère Travel Retail and a good performance from Lagardère Publishing. This growth performance was achieved while working actively towards the Group’s strategic redeployment.”

The company in the release has also shared the financial / revenue break-up of its various divisions.

  • Lagardère Publishing: a solid first quarter with growth of 2.9% driven by vigorous expansion in Partworks and good business momentum in the United States, states the official release
  • Lagardère Travel Retail strengthened its market position with revenue growth of 11% underpinned mainly by a good sales performance and network expansion in the APAC and EMEA regions.
  • Lagardère 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.
  • Lagardère 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.

The company has attributed the 14.3% decline in revenue as a 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.

The company has further released, as anticipated, that revenue declined to €103 million, down 14.3% like-for-like (down 16.9% on a consolidated basis). The difference between consolidated and like-for-like revenue can be explained by a €5 million negative foreign exchange impact linked primarily to the depreciation of the US dollar, offset by a €2 million positive scope impact associated with the acquisition of Brave Marketing in 2017.

Considering 2018 as the lowest point of the four-year sporting events cycle, first quarter revenue was affected by the non-occurrence of the 2017 Total Africa Cup of Nations and the 2017 Asian qualifiers for the 2018 FIFA World Cup. This was partially offset by stronger performances in the Olympics and Consulting businesses, together with the opening of Bordeaux Metropole Arena in January 2018.

Overall, The Lagardère group has delivered 5% growth in revenue for the first-quarter of 2018, fuelled by organic growth momentum at Lagardère Travel Retail and a good performance from Lagardère Publishing. This growth performance was achieved while working actively towards the Group’s strategic redeployment.


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