|This article relies on references to primary sources. (April 2011)|
|Type||Publicly traded Société en commandite par actions (Euronext: MMB)|
|Key people||Arnaud Lagardère (General and managing partner), Xavier de Sarrau (Chairman of the supervisory board)|
|Products||Publishing (books, magazines, e-publishing), radio stations, audiovisual production, online content, sport and entertainment, broadcast rights, retail outlets, advertising sales brokerage|
|Revenue||€7.370 billion (2012)|
|Operating income||€339 million (2012)|
|Profit||€207 million (2012)|
|Total assets||€9.360 billion (end 2012)|
|Total equity||€2.991 billion (end 2012)|
|Owner(s)||Government of France|
|Employees||24,068 (FTE, average 2012)|
|Subsidiaries||Lagardère Active, Lagardère Services, Lagardère Publishing, Lagardère Unlimited|
Lagardère [laɡaʁdɛʁ] is a French multinational mass media company headquartered in the 16th arrondissement of Paris. The group once covered a broad range of industries but 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 around 30 countries and is structured around four main business lines: its book and electronic publishing division (Lagardère Publishing) includes the major imprint Hachette Livre; 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. The Lagardère Services unit includes store retail, largely in airports and railway stations, and Lagardère Unlimited engages in sports and talent management, sports academies, event management, marketing of sports broadcast rights and management of sports venues.
Hachette and Matra, the foundation of Lagardère
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, and it is still a market leader.
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, the top European space company. Matra Hautes Technologies joined the Aerospace industry, and officially became Aerospatiale Matra on June 11, 1999. EADS (the European Aeronautic Defence and Space Company) 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
In 1963, Jean-Luc Lagardère was appointed Chief Executive Officer of Matra, with 1,450 employees. In 1981, he took the reins at Hachette. In 1988, the group’s first major success abroad was the acquisition of Grolier Encyclopedias in the United States.
In 1992, after a major year-long restructuring, Matra Hachette and Lagardère group were born. In the early 1990s, Jean-Luc Lagardère turned to television, and became head of La Cinq.
Arnaud Lagardère and the group’s refocus on media
In 1994, Hachette Livre launched the first multimedia encyclopedia, Axis, which gave it a dominant position in multimedia. 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, with the acquisition of the top USC [disambiguation needed] magazine chain in Canada, Hachette 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 [disambiguation needed]). That same year, Europe 1 and Club-Internet launched Europe Info, the number-one online news service on the French-language web. 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
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 40% of Editis (formerly Vivendi Universal Publishing). Lagardère took advantage of the growth of TNT to launch the youth channel Gulli in partnership with France Télévisions.
In 2006, aware that Sports was a buoyant market, Arnaud Lagardère created Lagardère Sports, a new branch 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.
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.
Agreement between Lagardère SCA and Hearst Corporation
On 28 March 2011, Lagardère SCA signed a contract for the sale of its international magazine business (102 titles) to Hearst Corporation for €651 million. 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.
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 who heads an executive committee comprising three co-managing partners (Pierre Leroy, Dominique D'Hinnin and Thierry Funck-Brentano) and spokesperson and chief of external relations Ramzi Khiroun.
Each of the four main divisions of the company has its own chairman and CEO, with Lagardère Publishing led by Arnaud Nourry, Lagardère Active by Denis Olivennes, Lagardère Services by Dag Rasmussen and Lagardère Unlimited by Arnaud Lagardère.
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, Antoine Arnault, Martine Chêne, Georges Chodron de Courcel, François David, Pierre Lescure, Jean-Claude Magendie, Hélène Molinari, Javier Monzón, Amélie Oudéa-Castéra, Didier Pineau-Valencienne, François Roussely, Susan M. Tolson and Patrick Valroff.
- Lagardère Publishing
- The world's second-largest trade-book publisher for the general public and educational markets (first in France and the United Kingdom, second in Spain and fifth in the United States), Lagardère Publishing is a federation of publishing houses united by common management rules and a concerted effort to expand digital activities.
- Lagardère Active
- Lagardère Active is a French media company structured around 6 business segments: magazine publishing (Elle, Paris Match, Le Journal du Dimanche, etc.), radio (Europe 1, Virgin Radio, Radio ZET, Jacaranda 94.2 etc.), TV channels (Gulli, MCM, Mezzo, etc.), audiovisual production, digital activities (Doctissimo, Elle.fr, etc.) and advertising sales.
- Lagardère Services
- Lagardère Services is involved in Press Distribution and Travel Retail, with operations in more than 20 countries across Europe, North America and Asia-Pacific. It has 2,000 sales outlets in 130 airports and more than 700 train stations selling cultural and leisure products, local services, luxury and duty free goods, specialized concepts and fast food.
- Lagardère Unlimited
- A Sport Industry and Entertainment company, Lagardère Unlimited is active in six complementary business activities: broadcast rights, marketing rights and associated products, event management, talent representation, venue consulting, and management of sports academies.
- EADS (European Aeronautic Defence and Space Company) (at 7,5%)
- EADS was created in July 2000, by consolidating Aerospatiale Matra, DaimlerChrysler Aerospace AG (“Dasa”), and Construcciones Aeronáuticas SA (“CASA”). Lagardère co-controls EADS, in which it holds a 7.5% stake. EADS is the one of the world’s leading players in aeronautics, space, defence and related services.
- Jean-Luc Lagardère Foundation
- Since 1989, 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 as Stephane Edelson that by 1993 wrote about the economist and banker Muhammad Yunus and the influence of his work on the empowerment of women.
|Recurring operating profit||462||402||339||-15,6 %|
|Finance costs, net||(82)||(95)||(82)||-13,7 %|
|Income tax expense||(67)||(105)||(40)||NS|
|Profit (loss) attributable to owners of the parent||163||(707)||(89)||NS|
|Adjusted profit attributable to owners of the parent*||284||226||207||-8.4%|
(*Excluding the contribution of EADS and non-recurring/non-operating items )
|USA and Canada||10%|
- Codes: ISIN (FR0000130213), Ticker (MMB), Bloomberg (MMB:FP), Reuters (LAGA.PA).
- Listing market: Euronext Paris.
- Member of: CAC Next 20, MSCI Europe.
- Shares eligible: for the Deferred Settlement Service (SRD) and French “PEA” share savings plans.
|% of capital||% of voting rights|
|Lagardère Capital & Management ||9.30||14.94|
|French institutional investors||16.79||17.25|
|Non-French institutional investors||63.95||57.44|
- "Annual Report 2012" (PDF). Lagardère. Retrieved 4 May 2013.
- "2012 Reference Document. "Address: Lagardère Head office - 4 rue de Presbourg - 75116 Paris, France"
- Colchester, Max (April 28, 2010). "Shareholders Support Lagardère Management". The Wall Street Journal.
- "Lagardère nomme Denis Olivennes à la tête de sa division médias". Reuters. November 7, 2011.
- M. A. Lagardère, Lagardère (SAS) and its subsidiary Lagardère Capital & Management.
- Official website
- Lagardère Services
- Lagardère Publishing/Hachette Livre
- Lagardère Unlimited
- Jean-Luc Lagardère Foundation