Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LAGARDERE SCA. We currently have 6 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
FY16e recurring EBIT guidance raised
10 Feb 17
Lagardère reported Q4 revenues of €1,984m, down 2.9% and up 2.4% on an organic basis (supported by Travel Retail at +7.2%, i.e. validating its current strategy in this segment, and Sports at +11.6%, thanks to a favourable calendar effect in Asia and Africa, offsetting a soft Publishing: -1.4%). A satisfactory end to the year, even if slowing down, as expected and guided for by management, after the strong +6.1% of the last Q3 and +2.5% for the 9 months period, due to an unfavourable basis of comparison for Publishing (Q4 15 organic performance was +9.2%) and a poor market environment for Active (magazines’ contraction and poor advertising for radio activities. For FY 16, consolidated revenues reached €7,391m, up 2.7% and +2.5% on an organic basis (Travel Retail at +7.1%, Publishing at +2.5%, Sports at +1.5%). This is slightly lower than AV’s figures of €7,448m despite higher organic growth (+2.7% compared to our +2.3%) and due to some higher forex and disposals’ impact than we had anticipated. As a positive, the group, which only reported its sales figures, is revising upward its FY16 guidance for recurring EBIT to be up by 13% instead of “slightly above 10%” compared to FY15 at CER and excluding any impact from disposals in the Distribution activities.
So far so good
10 Nov 16
Lagardère has reported Q3 revenues of €1,976m, positively up 6.1% on an organic basis (+7% on a reported basis after +2.7% coming from perimeter impact and -1.4% from forex). The 9 months total revenues were up by 5% to €5,407m (+€257m), of which +2.5% organically. The group reiterated its FY16 guidance for recurring EBIT to be slightly above 10% compared to FY15 at CER excluding any impact from the Distribution activities’ disposals.
Still confident in its FY16 guidance
23 Sep 16
As usual, Lagardère’s H1 16 results were mixed, reflecting its conglomerate profile and various business models. Consolidated revenues were up €127m to €3,431m, i.e. +3.8% on a reported basis helped by a +4.6% perimeter impact (c.60% coming from the sole Travel Retail division). The organic trend, which appeared disappointing at first sight (only +0.5%), reflected an unfavourable calendar impact in sporting events (two major football championships held in H1 15). Excluding the latter, the like-for-like top-line growth would have been +2.4%, which we consider as a rather satisfactory performance with the tough environment weighing on the group’s growth engine (Travel Retail). As expected, and due to the calendar effect in sports (-€27m impact), the group’s recurring EBIT was down from €122m to €101m, i.e. a margin decrease of 80bp to 2.9%. Lagardère, nonetheless, reiterated its FY16 guidance for a recurring EBIT growth target “slightly above 10%” (at CER and excluding any impact from any disposal of the Distribution activities), considering an encouraging outlook for H2 16e and as the Sports calendar’s adverse impact is expected to be fully reversed. The H1 16 FCF generation was also reassuring at €47m compared to -€84m a year earlier.
Good start to the year and reiterated guidance
12 May 16
Lagardère reported Q1 16 consolidated revenues down 2% on an organic basis and +0.9% on a reported basis at €1,586m (+€14m). The latter benefited from a 3.4% net positive impact from acquisitions. Positively, the group confirmed its FY16e guidance for recurring EBIT growth “slightly above 10%” (at CER and excluding any impact from any disposal of the Distribution activities).
Full-year 2015 results overshadowed by Dominique D'Hinnin's departure...
14 Mar 16
Lagardère, which had reported in February €7,193m consolidated revenues, up 0.3% on a reported basis and +3% organic, published a FY15 recurring EBIT of €378m (+10.5% or +€36m mainly driven by Sports: +€16m and Active: +€6m), in line with our expectations and reflecting a 5.3% margin compared with 4.8% a year earlier. Adjusted net profit reached €240m (AV: €234m) and satisfactorily reported cash flow from operations at €627m up €273m from FY14. The proposed dividend per share is unchanged at €1.30. The group is cautiously guiding for a FY16e recurring EBIT growth slightly above 10% (at CER and excluding the disposal of the Distribution activities).
Mixed H1 results offset by improved guidance
11 Aug 15
This time supported by continued growth in Travel Retail and a favourable calendar effect in Sports (i.e. the African Cup and the Asian Cup), Lagardère H1 15 revenues rose by 2.9% organically (-1.8% reported to €3,304m, after a negative perimeter impact of €277m and a positive €130m forex). Q2 organic growth reached only +0.4%, the only positive trend coming from the strategic Travel Retail business (+3.7%). Although the Sports division saw its margin boosted from 3.3% to 12.4%, it was insufficient, regarding the small size of the business (only c.8% of group sales), to offset the decline in profitability from the other activities. On the whole, the group's operating margin therefore only slightly improved (+40bp to 3.7%). Positively, Lagardère nonetheless raised its FY15e recurring EBIT growth from +5% to +7%, at CER and excluding the potential disposal of the LS Distribution business (a negative €15m impact so far).
Back to Hold, See More Risk than Reward in the Near Term
17 Feb 17
Ahead of prelims on March 1st, we tweak estimates and move back from Buy to Hold. We do still see good long term value in ITV, based on a resilient structural position in UK TV viewing. However, after a 30% bounce from post-Brexit lows of c160p, we now see more negatives than positives looming in the near term. The risks include NAR weakness, studios trading, management change, and content acquisitions such as ETO. We do see possible upsides from retransmission costs and from bid vulnerability – but also a strong case for likely bidders to sit on their hands for now. We lower our Target Price from 265p to 225p, and travel cautiously into these prelims.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.
Small Cap Breakfast
24 Jan 17
Impact healthcare REIT— Intends to float on the main market. Seeks to raise £160m to acquire a portfolio of up to 58 care homes. Expected Admission 7 March. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.