Lagardère Group

From Wikipedia, the free encyclopedia
  (Redirected from Lagardere Group)
Jump to: navigation, search
Lagardère SCA
Type Publicly traded Société en commandite par actions (EuronextMMB)
Industry Mass media
Founded 1992
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), radio stations, audiovisual production, online content, sports and entertainment, broadcast rights, retail outlets, advertising sales brokerage
Revenue 7.216 billion (2013)[1]
Operating income €327 million (2013)[1]
Profit €172 million (2013)[1]
Total assets €8.332 billion (end 2013)[1]
Total equity €2.927 billion (end 2013)[1]
Employees 23,179 (2013)[1]
Subsidiaries Lagardère Publishing, Lagardère Services, Lagardère Active, Lagardère Unlimited
Website www.lagardere.com
The head office, rue de Presbourg in Paris.

Lagardère [laɡaʁdɛʁ] is a French diversified media group headquartered in the 16th arrondissement of Paris.[2] 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. The Lagardère Services 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 Unlimited 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, 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 the early 1990s, Jean-Luc Lagardère turned to television, and became head of La Cinq.

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 [disambiguation needed]). 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 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, 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.[5]

2010 shareholders meeting[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.[6]

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.[7] 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.

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[8][9] 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,[10] 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, Soumia Belaidi Malinbaum, Martine Chêne, Georges Chodron de Courcel, François David, Yves Guillemot, Pierre Lescure, Jean-Claude Magendie, Hélène Molinari, Javier Monzón, Aline Sylla-Walbaum, François Roussely, Susan M. Tolson and Patrick Valroff.

Business lines[edit]

Lagardère Publishing is a federation of publishing houses.

  • Lagardère Services

Lagardère Services is involved in Press Distribution and Travel Retail. 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]

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 Unlimited

Lagardère Unlimited 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 consulting, and management of sports academies and front-ranking sports clubs.

Jean-Luc Lagardère Foundation[edit]

Since 1989,[11] 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[12] 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.

Financial data[edit]

Key Figures (in millions of euros)
Year 2011 2012 2013 ∆ 2013/2012
Net sales 7,657 7,370 7,216 -2.1%
Recurring operating profit 402 339 327 -3.5%
Finance costs, net (95) (82) (91) -13.7%
Income tax expense (105) (40) (117) NS
Profit (loss) attributable to owners of the parent (707) 89 1,307 +€1,218m
Adjusted profit attributable to owners of the parent* 226 207 172 -16.9%

(*Excluding the contribution of EADS and non-recurring/non-operating items )

Distribution of Net Sales by Geographic Area in 2013
Year 2013
France 37%
Western Europe 33%
Eastern Europe 11%
USA and Canada 10%
Asia-Pacific 7%
Others countries 2%

Lagardère shares are listed at Euronext Paris.

References[edit]

  1. ^ a b c d e f "Annual Report 2013" (PDF). Lagardère. Retrieved 6 May 2014. 
  2. ^ "2013 Reference Document. "Address: Lagardère Head office - 4 rue de Presbourg - 75116 Paris, France"
  3. ^ a b c Chevalier, Michel (2012). Luxury Brand Management. Singapore: John Wiley & Sons. ISBN 978-1-118-17176-9. 
  4. ^ "About Lagardere: History". Lagardere. Retrieved 10 June 2014. 
  5. ^ http://www.lagardere.com/press-room/press-releases/press-releases-363.html&idpress=4698
  6. ^ Colchester, Max (April 28, 2010). "Shareholders Support Lagardère Management". The Wall Street Journal. 
  7. ^ "Press release", Hearst Corporation
  8. ^ http://www.lagardere.com/group/management-299.html
  9. ^ http://www.lagardere.com/rapport_annuel_2010/documents/reference_document_2010_en/appli.htm
  10. ^ "Lagardère nomme Denis Olivennes à la tête de sa division médias". Reuters. November 7, 2011. 
  11. ^ http://www.lagardere.com/press-room/press-releases/press-releases-363.html&idpress=4467
  12. ^ fr:Haut et court

External links[edit]