Lagardère Group
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| Publicly traded société en commandite par actions | |
| Traded as | Euronext: MMB CAC Mid 60 Component |
| ISIN | FR0000130213  |
| Industry | Publishing, Travel Retail, Sports and Entertainment, Media |
| Founded | 1992 |
| Founder | Jean-Luc Lagardère |
| Headquarters | Paris, France |
Key people | Arnaud Lagardère (General and managing partner), Xavier de Sarrau (Chairman of the supervisory board) |
| Products | Publishing (books, magazines, e-publishing), retail outlets, online content, sports and entertainment, broadcast rights, radio stations, audiovisual production, advertising sales brokerage |
| Revenue | €7,258 million (2018)[1] |
| €401 million (2018)[1] | |
| €194 million (2018)[1] | |
| Total assets | €8.211 billion (end 2018)[1] |
| Total equity | €2.001 billion (end 2018)[1] |
Number of employees | 28,738 (2018)[1] |
| Subsidiaries | Lagardère Publishing, Lagardère Travel Retail, Lagardère Sports and Entertainment, Lagardère Active |
| Website | lagardere.com |
Lagardère (French: [laɡaʁdɛʁ]) is a multinational media conglomerate headquartered in the 16th arrondissement of Paris.[2] The group was created in 1992 as Matra, Hachette & Lagardère and once covered a broad range of industries. It is now largely focused on the media sector, in which it is one of the world's leading companies. Headed by Arnaud Lagardère, the firm does business in almost 40 countries and is structured around four main business lines: its book and electronic publishing division (Lagardère Publishing) includes the major imprint Hachette Livre. The Lagardère Travel Retail unit includes store retail, largely in airports[3] and railway stations while the Lagardère Active unit encompasses newspaper, digital media and magazine publishing (including Hachette Filipacchi Médias), radio and television broadcasting and production and advertising sales. Lagardère Sports and Entertainment engages in sports and talent management, sports academies, event management, marketing of sports broadcast rights and management of sports venues.
History[edit]
Hachette and Matra, the foundation of Lagardère[edit]
Louis Hachette's 1826 acquisition of Parisian bookstore Brédif was the starting point for what would one day be the Lagardère Group. Hachette published magazines dedicated to public entertainment (Le Journal pour Tous ["Everyone's Newspaper"], 1855), and also took part in publishing the Dictionnaire de la Langue française ("Dictionary of the French Language") with his friend Littré beginning in 1863. In 1953, Hachette launched Le Livre de poche with Henri Filipacchi.
Created in 1945, Matra (Mechanics/Aviation/Traction) was the company behind several technological projects: creating a twin-engine airplane prototype able to travel at 800 km/h, breaking the sound barrier at Mach 1.4 in vertical flight[clarification needed] for the first time in Europe. In 1990, Matra Espace and the aerospace division of Gec Marconi came together to create Matra Marconi Space. Matra Hautes Technologies joined the aerospace industry, and officially became Aerospatiale Matra on June 11, 1999. EADS, or the European Aeronautic Defence and Space Company, later Airbus, was founded on July 10, 2000, from the merger of Aérospatiale Matra SA, Aeronauticas SA, and DaimlerChrysler Aerospace AG. It officially launched the A380 program that same year. The aircraft would make its first flight in 2005.
Jean-Luc Lagardère and the birth of the group[edit]
In 1963, Jean-Luc Lagardère was appointed Chief Executive Officer of Matra, with 1,450 employees. In 1981, he became head of Hachette. In 1988, the group's first overseas acquisition was of Grolier Encyclopedias in the United States. In 1992, after a major year-long restructuring, Matra Hachette and Lagardère group were created. In 1990, Jean-Luc Lagardère turned to television, and became head of La Cinq, which had been suffering from financial problems since it began operations in 1986. The network's financial problems would worsen after Lagardère took control, and La Cinq ultimately ceased operations on 12 April 1992 (it would be replaced by France 5 in late 1994).
Arnaud Lagardère and the group's refocus on media[edit]
In 1994, Hachette Livre launched the first multimedia encyclopedia, Axis. Also in 1994, Matra Hachette Multimedia presented EPSIS, the first image-substitution process for advertising. In 1998, Hachette Multimedia was born of the consolidation of the multimedia division of Hachette Livre and Grolier Interactive (online educational services). A strategic agreement signed in 2000 by Lagardère and Deutsche Telekom to provide Internet service led to the merger of T-Online and Club-Internet.
In 1995 Hachette acquired UCS, Canada's leading newsstand chain,[4] and became the third largest operator in the international retail press trade. In 1996, Hachette Livre acquired the Hatier Group. In 1997, Hachette Livre won a string of literary prizes, including the Prix Goncourt and the Prix de l'Académie française with La Bataille (The Battle) by Patrick Rambaud (Grasset). That same year, Europe 1 and Club-Internet launched Europe Info. In 2000, Hachette Distribution Services created Relay, an international brand specializing in selling media products at public points of sale. That same year, Lagardère and Canal+ got into digital television. In 2001, Lagardère acquired the Virgin Stores brand and Virgin Megastore in France. Hachette Filipacchi Médias has continued its growth by taking a 42% stake in the Marie-Claire Group.
From a conglomerate to a media-diversified group[edit]
With the death of Jean-Luc Lagardère on March 14, 2003, Arnaud Lagardère was appointed General Partner of Lagardère SCA. That same year, Lagardère sold off its interest in Renault as well as its automotive engineering business. In 2004, the Group acquired Vivendi Universal Publishing. After antitrust review, Lagardère kept 40% of the company, including the imprints Larousse, Dalloz, Dunod, Nathan, Armand Colin, and Sedes, and the Spanish division Grupo Anaya.[5] The remainder was sold in 2004 under the name of Editis. Lagardère took advantage of the growth of TNT to launch the youth channel Gulli in partnership with France Télévisions.
In 2006, Arnaud Lagardère created Lagardère Sports, a new subsidiary of the Group specializing in sports economics and sporting rights. Lagardère also became the new franchisee of the Croix-Catelan (Bois de Boulogne, Paris) and the Rue Eblé sports and recreation sites, for a twenty-year period. On May 31, 2010, Lagardère Sports changed its name and became Lagardère Unlimited, a new branch of the group specializing in sport industry and entertainment.[6]
On July 8, 2015, Lagardère Services was renamed Lagardère Travel Retail. On September 15, 2015, agencies of the Lagardère Group announced that they are being renamed under a common corporate brand: Lagardère Sports and Entertainment. This new brand will replace the brand of Lagardère Unlimited as one of the four divisions of the Lagardère Group. In addition, all sports marketing agencies within this division, including Sportfive, World Sport Group, IEC in Sports, Sports Marketing and Management and Lagardère Unlimited Inc., will now be unified under a single commercial brand, being Lagardère Sports with all entertainment businesses under the brand Lagardère Live Entertainment.[7]
[edit]
Seventeen years after the creation of the limited partnership disputed by an American activist, the SCA (the French limited partnership with shares) was confirmed by nearly 80% of shareholders at the Shareholders Meeting on April 27, 2010.[8]
Agreement between Lagardère SCA and Hearst Corporation[edit]
On March 28, 2011, Lagardère SCA signed a contract for the sale of its international magazine business totaling 102 titles to Hearst Corporation for €651 million.[9] The transaction includes a Master License Agreement (MLA) relating to the ELLE trademark in the 15 countries affected by the transfer, in return for which the Group will receive an annual recurring royalty payment. Lagardère will retain complete ownership of its magazine business operations in France and of its ELLE trademark throughout the world. The closing of the transaction remains subject to approval by local partners in certain countries as well as to certain customary governmental approvals and antitrust clearances in certain jurisdictions.
Sale of endurance sports division to WTC[edit]
In January 2016, Lagardère sold the endurance sports division to the World Triathlon Corporation. The transaction includes the ITU World Triathlon Series races in Hamburg, Abu Dhabi, Kapstadt, Leeds, and Stockholm; other running events like the Hamburg-Marathon, Hawkes Bay International Marathon, Marathon de Bordeaux, Queenstown Marathon and The Music Runs; and cycling events like the Cyclassics Hamburg, Velothon Berlin, Velothon Wales, Velothon Copenhagen, Velothon Stockholm, Velothon Stuttgart.[10]
Sale of most of the media assets[edit]
Since the first half of 2018, a plan to sell the Group's media assets (excluding Paris Match, Le Journal du Dimanche, Europe 1, Virgin Radio, RFM and the Elle brand licence) has been underway at Lagardère Active. The Group has already divested a large number of assets, including international radio operations, the main digital assets (including e-Health), the interest in Marie Claire, most of the magazine publishing titles in France [11] and the TV unit [12] (excluding Mezzo and under suspensive conditions).
Recent acquisitions[edit]
Lagardère Publishing acquired Perseus Books[13] (2016), Bookouture[14] (2017), La Plage[15] (2018) and Worthy Publishing Group[16] (2018). Lagardère Travel Retail completed the acquisitions of Paradies[17] (2015) as well as Hojeij Branded Foods[18] (2018).
Management[edit]
The management structure of Lagardère reflects its status as a société en commandite par actions (partnership limited by shares): the firm is led by general and managing partner Arnaud Lagardère[19][20] who heads an executive committee comprising two co-managing partners (Pierre Leroy and Thierry Funck-Brentano), spokesperson and chief of external relations Ramzi Khiroun and chief financial officer Gérard Adsuar.
Each of the four main divisions of the company has its own chairman and CEO, with Lagardère Publishing led by Arnaud Nourry, Lagardère Travel Retail by Dag Rasmussen and Lagardère Sports and Entertainment by Andrew Georgiou. In 2018, Denis Olivennes left Lagardère Active, and joins CMI France as Chairman.[21]
The company is overseen by a largely independent supervisory board, which has been chaired by Xavier de Sarrau since April 2010. Its other members are Nathalie Andrieux, Soumia Belaidi Malinbaum, Martine Chêne, François David, Yves Guillemot, Jamal Benomar, Hélène Molinari, Gilles Petit, Aline Sylla-Walbaum, Susan M. Tolson and Patrick Valroff.
Business lines[edit]
- Lagardère Publishing
Lagardère Publishing is a federation of publishing houses.
- Lagardère Travel Retail
Lagardère Travel Retail is involved in Travel Retail (Travel Essentials, Duty Free & Fashion, and Foodservice). Aelia is a subsidiary of Lagardère that manages 270 duty-free shops in France, the United Kingdom, Poland, Ireland, and Spain.[3] In 2013, Aelia had sales of over €1,100 million.[3]
End of 2013 Lagardère acquired the Dutch company: Gerzon Schiphol, Gerzon Duty Free and Gerzon Import. Gerzon has a long term concession for Fashion, Leather & Travel and holds stores at Amsterdam Schiphol Airport, among them Hermes, Burberry, Victoria Secret, Ralph Lauren and 9 multi brands in Fashion and Leather & Travel. With this step Lagardère is the first major travel retail company to set foot on Amsterdam Schiphol Airport. With the renovation of terminal 2 completing in Q1 2015 extra stores will be added like: Botega Veneta, Hermes, Burberry and Gucci. Gerzon has opened the 3rd location of Victoria's Secret in the Netherlands at Amsterdam Central Railway station. From the 1st of December 2015 Gerzon will become Lagardère Travel Retail the Netherlands.
In 2015, Lagardère Travel Retail acquired The Paradies Shops in North America, signing the agreement in August,[22] and completing the acquisition in October.[23] Paradies and Lagardère Travel Retail in North America were combined as Paradies Lagardère.
- Lagardère Sports and Entertainment
Lagardère Sports and Entertainment is a sports and entertainment company active in six business activities: content production and broadcast rights management, marketing rights and associated products, event production and management, talent representation, venue management and consulting, and management of sports academies and front-ranking sports clubs.
The division promotes the WTA Finals and operates the Casino de Paris. Among notable clients are the International Olympic Committee, Asian Football Confederation, Confédération Africaine de Football, Commonwealth Games, over 70 European football clubs, over 50 golf players (including Phil Mickelson) and over 50 tennis players (including Caroline Wozniacki).
- Lagardère Active
Lagardère Active[24] is a French media company structured around : magazine publishing (The Elle brand licence, Paris Match, Le Journal du Dimanche, etc.), radio (Europe 1, Virgin Radio, RFM), TV channels (Gulli, MCM, Mezzo, etc.), audiovisual production and advertising sales.
Jean-Luc Lagardère Foundation[edit]
Since 1989,[25] the Jean-Luc Lagardère Foundation has encouraged and supported creativity and diversity through partnerships in the spheres of culture, solidarity and sport. Each year, the Foundation awards grants to gifted young people with bold, creative projects in the culture and media world.
It has rewarded young filmproducers like Carole Scotta founder of Haut et Court movie company, scriptwriters like Phil Ox who became producer in France and England, novelwriters including Agnes Desarthe, photographers like Emily Buzin and Tiane Doan Na Champassak and also journalists like Stephane Edelson that wrote in 1993 about the economist and banker Muhammad Yunus and the influence of his work on the empowerment of women.
Financial data[edit]
| Year | 2013 | 2014 | 2015 | 2016 | 2017** | 2018 | ∆ 2018/2017 |
|---|---|---|---|---|---|---|---|
| Net sales | 7,216 | 7,170 | 7,193 | 7,391 | 7,084 | 7,258 | +3.3% |
| Recurring operating profit | 327 | 342 | 378 | 395 | 399 | 401 | +2.1% |
| Finance costs, net | (91) | (73) | (66) | (49) | (73) | (59) | -€14m |
| Income tax expense | (117) | (87) | (37) | (69) | 2 | (134) | +€135m |
| Profit (loss) attributable to owners of the parent | 1,307 | 41 | 74 | 175 | 176 | 194 | +€18m |
| Adjusted profit attributable to owners of the parent* | 172 | 185 | 240 | 238 | 214 | 222 | +€8m |
(*Excluding non-recurring/non-operating items ) / (**Restated for IFRS 15)
| Year | 2018 |
|---|---|
| France | 31% |
| Western Europe | 25% |
| Eastern Europe | 11% |
| United States and Canada | 21% |
| Asia-Pacific | 9% |
| Others countries | 3% |
Lagardère shares are listed at Euronext Paris.
See also[edit]
References[edit]
- ^ a b c d e f "2018 Annual Report" (PDF). Lagardère.
- ^ "Reference Document. "Address: Lagardère Head office - 4 rue de Presbourg - 75116 Paris, France"
- ^ a b c Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. ISBN 978-1-118-17176-9.
- ^ "About Lagardere: History". Lagardere. Retrieved 10 June 2014.
- ^ "Business Brief -- Lagardere Groupe: EU Commission Approves Takeover of Vivendi Assets". Wall Street Journal, Eastern edition; New York, N.Y. New York, N.Y., United States, New York, N.Y. 2004-01-08. p. 1. ISSN 0099-9660. ProQuest 398859834.
- ^ "Lagardère - Press releases". Lagardere.com. 2010-06-02. Retrieved 2015-07-18.
- ^ Lagardère agencies set rebrand sportindustry.biz, 15/09/15. On September 17, 2015, Lagardère Entertainment (subsidiary of Lagardère Active), was renamed Lagardère Studios.
- ^ Colchester, Max (April 28, 2010). "Shareholders Support Lagardère Management". The Wall Street Journal.
- ^ "Hearst Leaps to New Level With Deal for Lagardere Magazine Portfolio". adage.com. Retrieved 2019-04-02.
- ^ Speed, Dan (January 21, 2016). "Ironman announces acquisition of Lagardère sports' endurance division". Competitor Group, Inc. Retrieved February 14, 2016.
- ^ "Lagardère. Le groupe progresse dans la cession de ses médias". Ouest France. July 27, 2018.
- ^ "M6 rachète le pôle TV de Lagardère pour 215 millions d'euros". Le Figaro. May 24, 2019.
- ^ "Hachette Reaches New Deal With Perseus Books". The New York Times. March 1, 2016.
- ^ "Hachette UK acquires Bookouture". The Bookseller. March 6, 2017.
- ^ "La maison d'édition La Plage rejoint Hachette Livre". Actualitte. July 16, 2018.
- ^ "Hachette Completes Worthy Publishing Purchase". Publishers Weekly. September 17, 2018.
- ^ "Lagardère Travel Retail completes acquisition of Paradies". Moodie Davitt Report. October 23, 2015.
- ^ "Lagardere agrees to buy U.S. airport food group HBF for $330 million". Reuters. August 15, 2018.
- ^ "Lagardère - Lagardere.com - Group - Corporate Governance". Lagardere.com. Retrieved 2015-07-18.
- ^ "2017 Annual Report" (PDF). Lagardère. Retrieved 3 May 2018.
- ^ "Denis Olivennes va présider le groupe de presse de Daniel Kretinsky". Lefigaro.fr. Retrieved 2019-01-21.
- ^ "Lagardère Travel Retail signs an agreement for the acquisition of Paradies, an airport travel retail leader in North America," Press Release, Lagarère.com, 11 August 2015
- ^ "Completion of the acquisition of Paradies," Press Release, ParadiesLagardere.com, 22 October 2015
- ^ "Lagardère - Press releases". Lagardere.com. March 13, 2019.
- ^ "Lagardère - Press releases". Lagardere.com. 2009-12-01. Retrieved 2015-07-18.
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