BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Lagardère (LGDDF.PK) reported first quarter Group revenue of 1.36 billion euros compared to 1.52 billion euros, prior year, a decline of 10.4% on a consolidated basis and of 12.5% like for like. The company said its revenue fell mainly as a result of the impacts of the Covid-19 crisis on Lagardère Travel Retail's operations from mid-February, and despite a good performance at Lagardère Publishing for the first two months of the quarter.
To mitigate the impacts from the Covid-19 pandemic, Lagardère is reducing costs across all of the Group's business in order to curb the impact of the decline in revenue on operating profit. The Group reduced the remuneration payable to the Executive Committee by 20%. Also, the Group is cancelling the proposed 2019 dividend to be paid in 2020.
The Lagardère group estimates that the adverse impact on the 2020 recurring EBIT of Lagardère Travel Retail could be in the region of 20% to 25% of the decrease in its revenue. For Lagardère Publishing, the Group estimates that the adverse impact on full-year 2020 recurring EBIT could be in the region of 35% to 40% of the decrease in its revenue.
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