Strong profitability improvement Lagardere reported solid FY22 results, with revenues 2% ahead of VA consensus. This solid revenue performance was driven by the ongoing recovery in Travel Retail, which ended 2022 8% below 2019. Publishing was broadly in line with expectations. Group EBIT came 9% ahead of consensus and benefited from EUR50m of one-time government and airport aid. Lagardere Publishing posted 11% EBIT margin, its second-best performance in 10 years. Management reinstated a EUR1.30 DPS. No numerical outlook Management refrained from providing numerical guidance but indicated that ''despite pressure on costs, Publishing should be able to maintain similar performances to 2022'' while it argued ''as global traffic continues to recover, Travel Retail has potential for revenue and profitability growth''. Travel Retail is off to a strong start with January and February 2023 revenues ahead of 2019. Publishing had a mixed start of the year with a solid performance in France, UK and LatAm but further pressure in a soft US market. Simon and Schuster: nice to have but not a must have Management confirmed it could take a look at Simon and Schuster should it come back to market. It insisted that Lagardere Publishing had a standalone plan with revenue growth and margin expansion and that it did not need Simon and Schuster to deliver on this plan. It also argued that Vivendi''s shareholding in MMB could help in negotiations. Price will be key. Neutral rating maintained The European Commission has until May 23rd, 2023, to take a decision on the proposed Vivendi transaction. Until then operating trends are unlikely to be a strong driver of MMB''s share price. We remain Neutral.