Family-controlled media group Lagardère expects its full-year operating profit to decline by up to 12%, five percentage points lower than its previous warning of a 7% fall.
In a statement released on 8 November, the Paris-based group said net sales for the three months to 30 September was €1.98 billion, a 5.8% decline from the same period last year.
However, Lagardère’s revenues increased by 1.3% on a like-for-like basis, due to the sale in January of more than 100 magazines to fellow family-controlled American publishing giant Hearst Corporation.
Third-quarter sales also increased at two of the group’s divisions, growing by 7.1% from the same period last year at Lagardère Services, the group’s store retail and distribution unit, and by 12% at Lagardère Unlimited, its sport division.
“The group approaches the end of the year with prudence given a very volatile overall environment,” the company wrote in the statement.
Lagardère was established in 1992, when Jean-Luc Lagardère brought together aerospace company Matra and publishing house Hachette. After his death in 2003, son Arnaud Lagardère took over at the head of the family business.