Third-quarter 2019 revenue

Revenue up 4.1% like for like to €2,000 million⁽¹⁾,
driven by growth of more than 6% at Lagardère Publishing and Lagardère Travel Retail,
demonstrating that the Lagardère group’s decision to strategically refocus around
Travel Retail and Publishing is operationally effective

Lagardère confirms its 2019 recurring EBIT growth target⁽¹⁾
based on the target scope⁽²⁾ of between 4% and 6%⁽³⁾

The Lagardère group posted a sustained 4.1% increase in revenue in the third quarter of 2019, spurred by continued organic growth momentum at Lagardère Travel Retail and by a robust performance at Lagardère Publishing.

Target scope highlights (like-for-like basis):

• Lagardère Publishing: growth in revenue (up 6.6%) was driven by solid performances in France on the back of the 2019 high school curriculum reform, in Spain with primary school curriculum reform, and in Partworks, as well as by robust momentum for Mobile Games.
• Lagardère Travel Retail maintained its revenue growth trajectory (up 6.3%) in all geographies, especially Europe and China which were boosted by good sales performances and expansion of the point-of-sale network.

Group revenue totalled €2,000 million versus €1,895 million in third-quarter 2018, representing an increase of 5.5% on a consolidated basis and of 4.1% like for like.
The difference between consolidated and like-for-like revenue reflects a €20 million positive foreign exchange effect attributable to the appreciation of the US dollar. The net €9 million positive scope effect is mainly due to the acquisition at Lagardère Travel Retail of HBF in the United States, offset by the disposal at Lagardère Active of most of the magazine publishing titles in France as part of the Group’s strategic refocusing.

At 30 September 2019:

Over the first nine months of the year, the Lagardère group maintained its revenue growth momentum, powered by the solid performance of its target scope activities, notably the sharp organic growth posted by Lagardère Travel Retail and a good showing from Lagardère Publishing on the back of curriculum reform. The Group’s performance was also boosted by growth at Lagardère Sports and Entertainment driven by a favorable calendar effect.
Revenue for the nine months ended 30 September 2019 totalled €5,612 million, up 6.7% on a consolidated basis and up 5.7% like for like, including growth of 4.9% on the target scope.
The difference between consolidated and like-for-like revenue reflects a €76 million positive foreign exchange effect attributable to the appreciation of the US dollar. The net €13 million negative scope effect is mainly due to disposals at Lagardère Active as part of the Group’s strategic refocusing, offset by the acquisition by Lagardère Travel Retail of HBF in the United States.

⁽¹⁾ Alternative performance indicators. See the glossary at the end of this press release.
⁽²⁾ Lagardère Publishing and Lagardère Travel Retail (core businesses), as well as Other Activities including Lagardère News (Paris Match, Le Journal du Dimanche, Europe 1, Virgin Radio, RFM and the Elle brand licence), the Entertainment businesses, the Group Corporate function, and the Lagardère Active Corporate function, whose costs will be wound down by 2020.
⁽³⁾ At constant exchange rates and excluding the acquisitions of HBF and IDF.