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Lagardère announces 2019 first half results

Paris-July 25, 2019

Lagardère announced results for first half of 2019 today. Highlights of the company’s financial performance are as follows:

At Hachette Book Group:
Hachette Book Group CEO Michael Pietsch said, “HBG’s revenue declined slightly in the first half, but our profits rose, boosted by major fiction releases like Summer of ’69 by Elin Hilderbrand—her first #1 bestseller!—and James Patterson’s The 18th Abduction and The ChefRedemption by David Baldacci, Run Away by Harlan Coben, Dark Sacred Night by Michael Connelly, and nonfiction bestsellers including Sea Stories by Admiral William McRaven, The Case for Trump by Victor Davis Hanson, and The Matriarch by Susan Page. 68 HBG titles have hit the New York Times bestseller list so far this year, with 9 of them reaching #1.  Strong backlist sellers including You Are a Badass by Jen Sincero, Andrew Sean Greer’s Pulitzer Prize winner Less, Circe by Madeline Miller, Admiral McRaven’s Make Your Bed, Min Jin Lee’s Pachinkoand Malcolm Gladwell’s Outliers also contributed strongly.

“Two Orbit science fiction writers recently received coveted honors, with Tade Thompson’s Rosewater winning the 2019 Arthur C. Clarke Award for Best Novel and NK Jemisin’s How Long Til Black Future Month winning a 2019 Locus Award for best story collection.

“Some of our most exciting publications of the year lie ahead – Malcolm Gladwell’s Talking to StrangersAll The President’s Women by Barry Levine and Monique El-Faizy, James Patterson’s Criss Cross and Ali Cross, Stephen Chbosky’s Imaginary Friend, Brent Weeks’s The Burning White, Donald Trump Jr.’s Triggered, Joyce Meyer’s Your Battles Belong to the Lord, Michael Connelly’s The Night Fire, Julie Andrews’ Home Work, and Radicals, Resistance and Revenge by Judge Jeanine Pirro.”

At Hachette Livre:
Hachette Livre delivered revenue of €1.044 billion, up 4.4% on a consolidated basis and up 1.3% like-for-like. The difference between consolidated and like-for-like figures is attributable to a €23 million positive foreign exchange effect primarily resulting from the appreciation of the US dollar, and to a €9 million positive scope effect, linked mainly to the acquisitions of Gigamic (France) and Worthy Publishing Group (US).

Business was up in the first half of 2019, thanks to growth in General Literature in France, a good performance in Partworks, and momentum in Mobile Games. These positive factors helped offset the year-on-year decline in Spain, the UK and the US, affected by a strong comparative first-half 2018 performance.

The figures below are like for like:

  • In France: growth of 4.7% was driven by General Literature, due mainly to the success of the Le Livre de Poche paperback edition of Guillaume Musso’s La Jeune Fille et la Nuit, and to a lesser extent, an increase in the Mobile Games business (IsCool Entertainment).
  • In the US: Business in the United States contracted slightly (down 1.5%), according to Lagardère’s press release, “with a solid advance in Digital Audiobooks and the success of new titles – particularly at Grand Central Publishing (Thomas Harris and Harlan Coben), Perseus (Victor Davis Hanson’s The Case for Trump) and Little, Brown Books for Young Readers (Fortnite titles),” which only partially offset a challenging comparison with the blockbuster success of The President is Missing by James Patterson and Bill Clinton in first-half 2018.
  • In the UK: business in the UK “edged back up by 0.8%, as a good backlist performance and growth in digital sales at Bookouture failed to offset an unfavorable comparison effect resulting from the success of Michael Wolff’s Fire and Fury at Little, Brown Book Group in first-half 2018 and slower sales of Illustrated Books.”
  • In Spain/Latin America:  business in the Spain/Latin America region declined 7.2%, reflecting delayed billings in Education compared to first-half 2018, which had been lifted by the early impacts of curriculum reform in Spain and Mexico.
  • Partworks: Partworks maintained its positive trend (+5.1%), driven by successful titles in Japan and Germany, as well as a good performance in Italy.
  • Ebooks: E-books accounted for 8.2% of total Lagardère Publishing revenue in the first half of 2019, compared to 8.4% in first-half 2018. Digital Audiobooks represented 3.4% of revenue, compared to 2.5% in first-half 2018.

Lagardère Publishing reported €36 million in recurring EBIT, down €9 million versus first half 2018. This decline chiefly reflects higher launch costs for Partworks and a negative timing effect in France linked to costs incurred to prepare the curriculum reform.

At Lagardère:

The Lagardère group reported revenue of €3.612 billion in the first half of 2019, up 6.7% like for like and up 7.3% consolidated versus first half 2018. “This growth momentum was powered by a solid performance at Lagardère Travel Retail…and by growth at Lagardère Publishing.” The Lagardère group’s recurring EBIT of $153 million was up $14 million from first half 2018.

 

Read Lagardère’s press release for further details.

Lagardère announces Q1 2019 revenue

Paris-May 7, 2019

Lagardère announced results for First Quarter 2019 today. Highlights of the company’s financial performance are as follows:

At Hachette Book Group:
CEO Michael Pietsch said, “HBG’s first quarter revenues, on a like for like basis, rose thanks to successful publications for major new titles – Run Away by Harlan Coben, The Cornwalls Are Gone by James Patterson and Brendan DuBois, The Fallen by David Baldacci, The Case for Trump by Victor Davis Hanson, and The Keto Diet by Dr. Josh Axe – as well as popular backlist fiction such as Where’d You Go, Bernadette by Maria Semple and recent Indies Choice winner Circe by Madeline Miller.  Q1 also saw continued growth in downloadable audio, and strong performance from Little, Brown Books for Young Readers, which brought out Nobel Prize winner Malala Yousafzai’s book about refugees, We Are Displaced, and had its fourth Caldecott Medal winner in the past five years, Sophie Blackall’s Hello Lighthouse.

The second quarter has begun with honors for several Little, Brown authors: the Edgar Award for Best Novel for Walter Mosley’s Down the River Unto the Sea, a James Beard Award for Christopher Kimball’sMilk Street: Tuesday Nights, and a Los Angeles Times Book Prize for Beth Macy’s Dopesick: Dealers, Doctors, and the Drug Company that Addicted America.

In May, we publish several of our most anticipated books of the year – Thomas Harris’s first new thriller in twelve years, Cari Mora, Admiral William McRaven’s Sea Stories: My Life in Special Operations, and Jared Diamond’s monumental Upheaval: Turning Points for Nations in Crisis.  We’ll close out the second quarter with major June titles including George Will’s The Conservative Sensibility, Elin Hilderbrand’s Summer of ’69, Kate Atkinson’s Big Sky, and Unsolved by James Patterson and David Ellis.

At Hachette Livre:
Hachette Livre delivered revenue of €460M, up 4.1% on a consolidated basis (up 0.9% like for like). The difference between consolidated and like for like revenue is due to a positive (+€12M) foreign exchange effect linked primarily to the appreciation of the US dollar and, to a lesser extent, a positive (+€2M) scope effect with HBG’s acquisition of Worthy Publishing. The figures below are like for like:

  • In France: Q1 2019 revenues were up 1.9%, reflecting good performances from General Literature which more than offset the retreat in Illustrated Books. Also noteworthy was the sharp growth in the Mobile Games business.
  • In the US: business in the U.S. “delivered solid growth (up 3.3%) on the back of good momentum in digital audio books and successful new releases at Perseus (including Victor Davis Hanson’s The Case for Trump), at Little, Brown Books for Young Readers with Malala Yousafzai’s We Are Displaced and at Little, Brown and Company with James Patterson’s The Cornwalls are Gone,” according to Lagardère’s press release.
  • In the UK: the contraction in revenue in the United Kingdom (down 3.7%) mainly reflected an unfavorable comparison with Q1 2018, which had been lifted by the successful publication of Michael Wolff’s Fire and Fury. This impact was partially offset by a good backlist performance, with Stephen Hawking’s Brief Answers to the Big Questions (published by John Murray), growth in digital audio books and a good showing from Bookouture.
  • In Spain/Latin America: revenues were up 3.4% driven by good performances in the General Literature segment.
  • Partworks: revenues rose 1.4%, mainly as a result of a larger and more successful number of launches, notably in Japan, good momentum in Italy and the bestselling Les Voitures de Tintin collection in France.
  • Ebooks: accounted for 9.1% of total Lagardère Publishing revenue in Q1 2019, stable compared to Q1 2018, while digital audio books represented 3.8% of revenue versus 2.5% in Q1 2018.

At Lagardère:
The Lagardère group reported revenue of €1.708 billion in the first quarter, up 8.9% like for like and up 9.8% consolidated versus Q1 2018. The difference between consolidated and like for like sales reflects reflects a positive (+€33M) foreign exchange effect due to the appreciation of the US dollar and a negative (-€12M) scope effect related to the disposal of magazine publishing titles in France and international radio operations by Lagardère Active, partially offset by the acquisition of Hojeij Branded Foods (HBF) at Lagardère Travel Retail.

Read Lagardère’s press release for further details.

Lagardère announces full year 2018 results

Paris-March 13, 2018

Last month, Lagardère announced their fourth quarter sales and their full-year revenue for 2018. Today, they followed up with an announcement of their full year 2018 results, a more detailed report that includes operating profit. Highlights are as follows:

At Hachette Book Group: 

CEO Michael Pietsch said, “HBG’s increased profits in 2018 were the result of superb publishing across our divisions, solid revenue growth, a continued rise in downloadable audio sales, and a strong backlist performance.

2019 has started excitingly, with Little, Brown Books for Young Readers winning an unprecedented fourth Caldecott Medal in five years for Sophie Blackall’s Hello Lighthouse, and with Hachette Audio winning an Audie Award forDreamland Burning by Jennifer Latham, narrated by Pyeng Threadgill and Luke Slattery, an inventive production of the young adult novel from Little, Brown Book for Young Readers.

The year will be full of important and bestselling publications, including the recently announced Fall title from Malcolm Gladwell, Talking to Strangers, James Patterson’s The 18th Abduction, Admiral William McRaven’s Sea Stories, Harlan Coben’s Run Away, Jared Diamond’s Upheaval, Thomas Harris’s Cari Mora, The Next Great Paulie Fink by Ali Benjamin, David Baldacci’s Redemption, Victoria Osteen’s Exceptional You!, Ann Leckie’s The Raven Tower, George Will’s The Conservative Sensibility, Janet Napolitano’s How Safe Are We?, and Big Sky by Kate Atkinson.”

At Hachette Livre:

Hachette Livre delivered revenue of €2.252 billion in 2018, down 1.2% like-for-like over 2017 (down 1.6 % on a consolidated basis). As expected, the slight decline in revenue in 2018 reflects the 13.4% (€49 million) decline in Education amid the absence of curriculum reform in France, Spain, and the UK. This was partially offset by the success of General Literature, which was up €22 million (2.2%).

  • In France: 2018 revenue declined 3.8% in France and 5.1% in Spain/Latin America, attributed to the decline in Education in those markets as well as an unfavorable comparison effect in Illustrated Books due to the success ofAstérix et la Transitalique in 2017 in those regions.
  • In the US: revenue “advanced by 3.7%, driven by the success of best-selling titles (including the Bill Clinton and James Patterson novel The President is Missing and Nicholas Sparks’ Every Breath), good performances at Perseus and a dynamic showing from audiobooks,” according to Lagardère’s press release.
  • In the UK: revenue slipped 0.5%, with the downturn in Education partially offset by good momentum in General Literature (including J.K. Rowling’s Fantastic Beasts: The Crimes of Grindelwald, and Michael Wolff’s Fire and Fury).
  • Partworks: revenue remained stable in 2018 (up 0.1%) thanks to a good backlist performance after the success of new title releases in 2017, particularly in Japan.

Ebooks: accounted for 7.9% of total Lagardère Publishing revenue in 2018, versus 7.1% in 2017. Digital audiobooks represented 2.7% of revenue versus 2.0% in 2017.

The Publishing division’s EBIT of €190 million is a decline of €20 million compared with 2017. This decrease reflects “the sharp fall in Education…and to a lesser extent, the contraction in Illustrated Books in France, which had been buoyed by the publication of Astérix et la Transitalique in 2017. The unfavorable currency effect also had an impact on recurring EBIT. These factors were only partly countered by good momentum in General Literature, particularly in the United States, and by the contribution of recent acquisitions in the United Kingdom.”

At Lagardère:

Lagardère reported revenue of €7.258 billion in 2018, up 3.3% like for like. The company delivered profit of €401 million, up €2 million or 2.1% compared to 2017.

First quarter 2019 revenue will be announced on May 16.

For more details, read Lagardère’s press release.

Lagardère announces fourth quarter 2018 results

Paris-February 7, 2018

Lagardère announced fourth quarter and full-year 2018 revenues today. See highlights below:

At Hachette Book Group: 

CEO Michael Pietsch said, “HBG’s strong fourth quarter capped another year of solid revenue growth.  The final quarter was lively, with #1 bestselling novels from Nicholas Sparks, Michael Connelly, James Patterson, Robert Galbraith (aka J.K. Rowling), and Neil Patrick Harris, newsmaking political hits from Pete Souza and Cory Lewandowski, and backlist powerhouses including Jen Sincero’s You Are a Badass, Madeline Miller’s Circe, and Hugo Award-winner N.K. Jemisin’s Broken Earth trilogy. It was especially thrilling to publish the #1 bestselling novel of 2018, Bill Clinton and James Patterson’s The President Is Missing, and this year’s Pulitzer Prize-winner for fiction, Less by Andrew Sean Greer, both of which sold strongly through Q4.  And we welcomed the Christian publisher Worthy Books to our Hachette Nashville division.

Once again, we saw significant growth in downloadable audio.  And, as always, our distribution clients had major hits including Jeff Kinney’s Diary of a Wimpy Kid: The Meltdown from Abrams and Sherri Duskey Rinker’s Construction Site on Christmas Night from Chronicle.

2019 has started superbly, with Little Brown Books for Young Readers bringing home an unprecedented fourth Caldecott Medal in the past five years, for Sophie Blackall’s Hello Lighthouse. And the year holds a powerful lineup of new books from David Baldacci, Holly Black, Sandra Brown, Harlan Coben, James S.A. Corey, Michael Connelly, Jared Diamond, Malcolm Gladwell, Thomas Harris, Elin Hilderbrand, Joyce Meyer, Joel Osteen, James Patterson, and many other important and bestselling writers.  It’s going to be an exciting year!”

At Hachette Livre:

Hachette Livre delivered revenue of €2.252 billion in 2018, down 1.2% like-for-like over 2017 (down 1.6 % on a consolidated basis). The difference between these two figures reflects a €40 million negative foreign exchange effect, partially offset by a €30 million positive scope impact from the acquisitions of Jessica Kingsley, Summersdale, Kyle Cathie, and Bookouture in the UK and Worthy Publishing in the US.

As expected, the slight decline in business in 2018 is due to the absence of curriculum reform in France and to a lesser extent in Spain; also, the success of Astérix et la Transitalique in 2017 in these same regions created an unfavorable comparison. “These factors were partly countered by good momentum in the United States, driven by the success of best-selling titles such as the Bill Clinton and James Patterson novel The President is Missing and Nicholas Sparks’ Every Breath, along with good performances at Perseus,” according toLagardère’s press release.

For full year 2018, Education was down 13.4% or €49 million, with the decline offset in part by a strong performance from General Literature, which gained 2.2% or €22 million.

In the fourth quarter, Hachette Livre delivered revenues of €645 million, up 1.4% like-for-like (up 3.4% on a consolidated basis), with the difference between the two figures due primarily to a €10 million positive scope effect, which includes the Worthy Publishing, Kyle Cathie, Jessica Kingsley and Summersdale acquisitions. On a like-for-like basis, the main changes in each geographic area are as follows:

  • In France: Q4 revenue held firm (down 0.7%) due mainly to the success of Michelle Obama’s Becoming and to a good performance for Livre de Poche paperbacks, which more than offset an unfavorable prior-year comparison effect (successful 2017 publications of Astérix et la Transitalique, Dan Brown’s Origin and E.L. James’ Darker).
  • In the US: “Strong 6.3% growth essentially reflects a good backlist performance, in particular further success for Jen Sincero’s You are a Badass at Perseus. A busy schedule of new title releases also helped lift growth, particularly Nicholas Sparks’ Every Breath at Grand Central Publishing,” according to Lagardère’s press release.
  • In the UK: good business momentum (up 8.9%) was mainly driven by the success of General Literature, particularly J.K. Rowling’s Fantastic Beasts: The Crimes of Grindelwald, and Stephen Hawking’s Brief Answers to the Big Questions.
  • In Spain/Latin America: business was up slightly, gaining 2.3%.
  • Partworks: revenue fell 4.6% due to a limited number of new launches compared to 2017 and to the slowdown in business in Argentina following the devaluation of the peso.
  • Ebooks: accounted for 7.9% of total Lagardère Publishing revenue in 2018, versus 7.1% in 2017. Digital audiobooks represented 2.7% of revenue versus 2.0% in 2017.

At Lagardère:

Lagardère delivered fourth quarter revenues of €1.997 billion, up 2.1% like for like against Q4 2017 (up 4.1% on a consolidated basis).

The company reported revenues of €7.258 billion in 2018, up 3.3% like for like (up 2.5% on a consolidated basis) compared to prior year. The difference between consolidated and like-for-like revenue is attributable to a negative foreign exchange effect; changes in the scope of consolidation had a positive impact on revenue, due chiefly to acquisitions in the Publishing and Travel Retail divisions, partially offset by divestments at Lagardère Active.

Full year results including profit will be released on March 13.

 

For more details, read Lagardère’s press release.

Lagardère announces third quarter 2018 results

Paris-November 8, 2018

Lagardère announced results for third quarter 2018 today. Highlights of the company’s financial performance are as follows:

At Hachette Book Group:

CEO Michael Pietsch, said, “Hachette Book Group’s third quarter revenues were solidly ahead of 2017, led by The President is Missing by Bill Clinton and James Patterson, the bestselling novel of 2018 so far. We had dozens of New York Times bestsellers in the quarter—seven of them #1 bestsellers—Including David Sedaris’s Calypso, Sally Field’s In Pieces, James Patterson’s Juror #3 and Texas Ranger, Robert Galbraith’s (aka J. K. Rowling) Lethal White, Sandra Brown’s Tailspin, Neil Patrick Harris’s The Magic Misfits, and Jeanine Pirro’s Liars, Leakers, and Liberals, along with continued strong sales in backlist and downloadable audioDuring the quarter, we also completed our acquisition of the Worthy Publishing Group, an exciting expansion of our vibrant Christian publishing program. We’re anticipating an outstanding finish to the year, with major bestsellers including Nicholas Sparks’s Every Breath, James Patterson and Chris Grabenstein’s Max Einstein, Pete Souza’s ShadeDear Evan Hansen: The Novel by Val Emmich, Steven Levenson, Benj Pasek, and Justin Paul, Long Road to Mercy by David Baldacci, James Patterson’s Target Alex Cross, Michael Connelly’s Dark Sacred NightHow Long ‘til Black Future Month by three-time Hugo Award winner N. K. Jemisin, and Winter Solstice by Elin Hilderbrand, among many others.”

At Hachette Livre:

Hachette Livre: For the first nine months, Hachette Livre delivered revenue of €1.607B, down 2.2% like-for-like over the same period in 2017, and down 3.5 % on a consolidated basis. The difference between these two figures can be explained by a €42M negative foreign exchange effect mainly from the depreciation of the US dollar, partially offset by a €20M positive scope impact mainly associated with the acquisitions of Jessica Kingsley, Summersdale, Kyle Kathie, Bookouture, and IsCool Entertainment.

Through September, business was affected as expected by the decline in the Education segment in France, Spain and the United Kingdom, which was partially offset by good performances in General Literature and in particular the success of bestselling titles such as Bill Clinton and James Patterson’s The President is Missing in the US, Michael Wolff’s Fire and Fury in the UK, and Guillaume Musso’s La Jeune Fille et la Nuit in France.

Third quarter revenues of €607 million were down 6.3% like-for-like and down 6.1% on a consolidated basis. The difference between consolidated and like-for-like figures is due to a positive scope effect of €2 million, mainly reflecting the acquisitions of Jessica Kingsley and Summersdale. The currency effect was neutral for the quarter.

On a like-for-like basis, the main changes in each geographic area can be explained as follows:

  • In France: revenues were down 14.7%, with the slowdown mainly due to the absence of curriculum reform compared to Q3 2017, which benefited from a second year of reform (particularly in the middle school segment).
  • In the US: Hachette Book Group “delivered a sparkling performance, with growth of 5.1% driven by the continued success of the Perseus backlist, especially Jen Sincero’s You are a Badass, and by a strong release schedule at Grand Central Publishing, including Sally Field’s In Pieces,” according to Lagardère’s press release. “Third quarter results were also lifted by the success of Bill Clinton and James Patterson’sThe President is Missing across all formats, especially e-books and digital audio.”
  • In the UK: The decline in business in the UK (down 6.7%) was due mainly to the decline in the Education segment and, to a lesser extent, a lighter release schedule than in 2017, which included successful titles such as Martina Cole’s Damaged and four new Famous Five releases.
  • In Spain/Latin America: Revenues were down 8.2%, attributed to an unfavorable comparison effect in the Education business after a less extensive textbook campaign in 2018. However, Mexico posted a good performance.
  • Partworks: Remained flat (down 0.4%), with continued solid momentum in core collections offsetting the decline observed in Europe, with the exception of Italy.
  • Ebooks: Accounted for 7.7% of total Lagardère Publishing revenue in third-quarter 2018, versus 7.2% in the same period in 2017; digital audio books represented 2.8% of revenue versus 1.8% in the third quarter of 2017.

At Lagardère:

The Lagardère group delivered revenue of €1.895 billion in the third quarter, compared to €1.858 billion in Q3 2017, an increase of 2.6% like-for-like and 2.0% on a consolidated basis. The difference between the two figures reflects a negative foreign exchange effect of €4 million, primarily due to the depreciation of the Australian and New Zealand dollars. The €6 million negative scope effect mainly relates to the divestment of LARI by Lagardère Active, offset in part by acquisitions at Lagardère Publishing.

Through September, the group’s revenues were €5.261 billion, up 3.7% like-for-like and up 1.9% on a consolidated basis. The difference between the two figures is attributable to a positive scope effect resulting from acquisitions in the Publishing and Travel Retail divisions, partially offset by divestments by Lagardère Active and press distribution activities in the Travel Retail division. The negative foreign exchange effect resulted primarily from the depreciation of the US dollar.

Read Lagardère’s press release for further details. If you have questions about today’s announcement, please contact me. Lagardère’s next financial report will be Q4 revenues on February 7, 2019, followed by full-year 2018 financial results on March 13, 2019.

Lagardère announces first half 2018 results

Paris-July 26, 2018

Lagardère announced results for First Half 2018 today. Highlights of the company’s financial performance are as follows:

At Hachette Book Group:

CEO Michael Pietsch said, “First half revenues and profits grew from 2017, with excellent ongoing backlist performance and strong publishing programs across divisions. Hachette hardcovers have held the #1 slot in both fiction and nonfiction for six consecutive weeks on the New York Times Best Sellers list, led by Bill Clinton and James Patterson’s thriller The President Is Missing and David Sedaris’s essay collection Calypso. Hachette Audio continued its steady growth, and our Client Services business had a strong first half.  Readers remain intensely interested in politics and we’ve tapped into that with bestsellers including Trump’s America by Newt Gingrich, Russian Roulette by David Corn and Michael Isikoff, and continued sales of Obama: An Intimate Portrait by Pete Souza. Other first-half bestsellers include The Fallen by David Baldacci, James Patterson’s The 17th Suspect, Jake Tapper’s The Hellfire Club, You Are A Badass by Jen Sincero, Elin Hilderbrand’s The Perfect Couple, Min Jin Lee’s Pachinko, the Pulitzer Prize winner Less by Andrew Sean Greer, and The Wild Robot Escapes by Peter Brown.  The steady growth of the Avalon Travel imprint brought it to #1 market share in the category in the first half.  We’re looking forward to an extremely strong second half, with major books from Sally Field, James Patterson, Sandra Brown, David Baldacci, Michael Connelly, Robert Galbraith (aka J.K. Rowling), Joyce Meyer, Joel Osteen, Kim Stanley Robinson, Ann Leckie, Ambassador Wendy Sherman, Neil Patrick Harris, Flea, the creators of Dear Evan Hansen, Kate Atkinson, and many others.”

At Hachette Livre:

Hachette Livre delivered revenue of €1 billion in the first half of the year, up 0.5% like-for-like (-1.9% on a consolidated basi) over first half 2017; the difference between consolidated and like-for-like figures was due to negative (-€42M) foreign exchange effect associated with the depreciation of the U.S. dollar and a positive (+€18M) scope effect due mainly to Hachette UK’s acquisitions of Bookouture, Jessica Kingsley Publishing, Summersdale, and IsCool Entertainment.

  • In France: first half 2018 revenues were up 2.5%, driven primarily by General Literature and strong sales for author Guillaume Musso, good momentum at Le Livre de Poche, and an upward trend for Distribution.
  • In the US: revenues rose 1.4%, reflecting the success of The President Is Missing by James Patterson and Bill Clinton, and “the sustained release schedule at Perseus, which offset the contraction at Nashville following the success of Paul Young’s The Shack in first half 2017,” according to Lagardère’s press release.
  • In the UK: revenues were down 2.5%. Excellent sales for Michael Wolff’s Fire and Fury at Little, Brown Book Group did not offset the full effect of the contraction in the frontlist at Headline and Hodder.
  • In Spain/Latin America: revenues were down 5.1% due to unfavorable comparison with strong textbook sales in first half 2017.
  • Partworks: revenues rose 2.7%, with particularly strong sales in Latin America, France, and Italy.
  • Ebooks: accounted for 8.4% of total Lagardère Publishing revenue in first-half 2018, compared to 8.8% in the same period last year.

The Publishing division achieved profits of €40 million, down €1 million compared to first-half 2017. Positive momentum in General Literature in France and improved profitability in the United States only partly offset downturn in business in Spain and a slight decline in the UK.

At Lagardère:

The Lagardère group delivered revenue of €3.36 billion (+4.4% growth like-for-like, +1.8% on a consolidated basis) for first half 2018, with the increase reflecting “strong growth at Lagardère Travel Retail (+9.9%), as well as a solid contribution by Lagardère Publishing and Lagardère Active despite the unfavorable market environments,” according to the company’s press release. Group profit remained stable year on year at €132 million. The difference between consolidated and like-for-like sales reflects a negative (-€110M) foreign exchange effect due to depreciation of the US dollar, and a positive (+€25M) scope effect relating to acquisitions in the Publishing and Travel Retail divisions and divestitures in the Active division.

Read Lagardère’s press release for further details.

Lagardère announces Q1 2018 revenue

Paris-May 17, 2018

Lagardère announced results for First Quarter 2018 today. Highlights of the company’s financial performance are as follows:

At Hachette Book Group:
CEO Michael Pietsch said, “Our good first quarter results came from many places: #1 bestselling books by HBG house authors James Patterson, David Baldacci, Douglas Preston & Lincoln Child, and Brad Meltzer, from backlist hits like You Are a Badass by Jen Sincero, Obama: An Intimate Portrait by Pete Souza, and Pachinko by Min Jin Lee, and from breakout bestsellers including Michael Isikoff & David Corn’s riveting Russian Roulette, Jennifer Palmieri’s powerful Dear Madam President, Peter Brown’s delightful The Wild Robot Escapes and Vashti Harrison’s inspiring Little Leaders.

“Since Q1’s end we’ve had the spectacular news that Andrew Sean Greer’s brilliant and joyful novel Less was awarded the 2018 Pulitzer Prize for Fiction, and that Attica Locke received the Edgar Award for Best Novel for Bluebird, Bluebird. Our biggest book of the year, James Patterson and President Bill Clinton’s thriller The President Is Missing, goes on sale next month, and is certain to be a major publishing event.”

HBG has had 63 New York Times bestsellers so far this year, including 15 #1 bestsellers.  Looking ahead at the third quarter, we have exciting new books from Sally Field, Elin Hilderbrand, Sandra Brown, Joyce Meyer, Megan Abbott, Flea, Neil Patrick Harris, and Kate Atkinson, among many others. Recent acquisitions include books from Harlan Coben, Malala Yousafzai, Marie Kondo, Daniel Kahneman, and the team behind Dear Evan Hansen.

At Hachette Livre:
Hachette Livre delivered revenue of €442M, up .5% over first quarter 2017 on a consolidated basis and up 2.9% like-for-like; the difference between consolidated and like-for-like figures was due to negative (-€23M) foreign exchange effect associated with the depreciation of the U.S. dollar and pound sterling, as well as a positive (+€12M) scope effect due mainly to Hachette UK’s acquisitions of Brainbow, Bookouture, Summersdale, and Jessica Kingsley Publishing.   

  • In France: Q1 2018 revenues were up 1.7%, due primarily to Larousse, Le Livre de Poche paperbacks, and Illustrated Books.
  • In the US: business in the U.S. “delivered solid growth (up 5.4%), lifted by the continued success of the backlist, especially Pete Souza’s Obama: An Intimate Portrait, and by a busy release schedule at Grand Central Publishing and Perseus,” according to Lagardère’s press release.
  • In the UK: good business momentum (+1.4%) was spurred by Michael Wolff’s Fire and Fury at Little, Brown Book Group.
  • In Spain/Latin America: revenues were up 4.3% driven by Education in Spain.
  • Partworks: revenues rose 6.3%, with particularly strong sales in France and Italy.
  • Ebooks: accounted for 9.1% of total Lagardère Publishing revenue in Q1 2018, compared to 10% in Q1 2017.

At Lagardère:
The Lagardère group delivered 5% growth in revenue for first quarter 2018, “fueled by organic growth momentum at Lagardère Travel Retail and a good performance from Lagardère Publishing.” The company reported consolidated revenue of €1.555 billion in the first quarter, up 5.0% like-for-like and up 1.5% consolidated versus Q1 2017. The difference between consolidated and like-for-like sales reflects a negative (-€63M) foreign exchange effect due to depreciation of the US dollar, and a positive (+€10M) scope effect relating to acquisitions by Hachette UK.

Please read Lagardère’s press release for further details.

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