Full-Year 2024 results

Paris, 13 February 2025,5.35 p.m.

"By bringing together Lagardère and Prisma Media, Louis Hachette Group combines the world leaders in publishing, travel retail and media.

The Group's remarkable performance for its first financial publication following its flotation on Euronext Growth Paris on 16 December testifies to the relevance of its strategic model and its ability to continue developing.”

Jean-Christophe Thiery, Chairman and Chief Executive Officer, Louis Hachette Group 

l     Key figures

The figures below for 2023 correspond to 12-month pro forma data.

Louis Hachette Group revenue in 2024 was up 10% year on year to €9,235 million, driven by growth in Lagardère's two core divisions.

EBITA totalled €510 million in 2024, up €20 million on the €490 million figure recorded in 2023.

Profit before finance costs and tax came out at €401 million for 2024, versus €346 million in 2023.

Profit – Group share amounted to €13 million in 2024, impacted by the accounting effects of the first consolidation of Lagardère by Vivendi.

Net debt stood at €1,826 million at 31 December 2024 versus €2,207 million at end-2023, a decrease of €381 million thanks to good cash generation from operations and the recapitalisation of Prisma Media.

On 13 February 2025, the Board of Directors of Louis Hachette Group met to approve the 2024 consolidated financial statements. The Group’s consolidated financial statements have been audited. The audit report will be signed off once the specific verifications have been completed. The Board of Directors has decided to propose to the Annual General Meeting of 29 April 2025 an ordinary dividend of €0.06 per share for 2024.

I.           REVENUE AND EBITA

l  Revenue

l  EBITA

l  Lagardère

Revenue for the Lagardère group came in at €8,942 million for 2024, up 10.6% as reported and up 8.5% like for like. The difference between reported and like-for-like revenue is for the most part attributable to a €152 million positive scope effect linked chiefly to the acquisition by Lagardère Travel Retail of Tastes on the Fly (positive €132 million impact) in fourth-quarter 2023 and the sale of Paris Match in fourth-quarter 2024 (negative €14 million impact). The positive €8 million currency effect was mainly due to the appreciation of the pound sterling and the Polish zloty, offset by the depreciation of the US dollar and the Czech koruna).

l  Lagardère Publishing 

Revenue for Lagardère Publishing totalled €2,873 million in 2024, up 2.2% as reported and up 1.9% like for like. The difference between reported and like-for-like revenue is for the most part attributable to an €8 million positive currency effect, linked chiefly to the appreciation in the pound sterling (positive €16 million impact), offset by the depreciation of the US dollar and Japanese yen.

The figures below are presented on a like-for-like basis.

In France, revenue contracted slightly, down 3%. After a strong performance in 2023, with growth of 5%, this decline is mainly attributable to Illustrated Books, which was lifted in 2023 by two Asterix publications: the original work L'Iris Blanc and the illustrated album L'Empire du Milieu. Education also saw a drop in activity due to the absence of curriculum reforms, as did General Literature owing to a slightly less buoyant publishing programme. The Group's publishing houses won several major literary prizes this autumn, including the Renaudot prize for Jacaranda by Gaël Faye (Grasset) and the Goncourt des lycéens prize for Madelaine avant l'aube by Sandrine Collette (JC Lattès). These awards testify to the dynamism and quality of the publishing houses in the Hachette Livre group.

In the United States, business saw strong growth of 7% in a dynamic market. The increase was due in particular to the growth of Hachette Audio, with the boom in audio and digital sales. The Young Adult segment, driven among others by Peter Brown's The Wild Robot series, enjoyed strong growth, while the Adult range was lifted by bestsellers such as Eruption by James Patterson and Michael Crichton and the continuing success of The Housemaid by Freida McFadden.

In the United Kingdom, business grew by a further 3%, following on from a very dynamic year in 2023 (growth of 6%), despite a declining market. Sales were driven in particular by the continuing success of the sagas by Rebecca Yarros (The Empyrean), Ana Huang (Twisted and Kings of Sin) and Freida McFadden (The Housemaid), in both backlist and frontlist and across all formats.

In Spain/Latin America, business was down by 6% due to an unfavourable comparison with 2023 caused by spike in curriculum reform in Spain during that year. Mexico, on the other hand, posted strong growth in both Education and General Literature.

Revenue for Partworks was up 3%, reflecting the success of the collections launched at the end of 2023, particularly in France and Japan, coupled with a buoyant launch campaign in early 2024 across most regions.

Board Games had an exceptional year, with growth of 22% lifted by a host of successful products, including the Sky Team game (Le Scorpion Masqué), which won the Spiel des Jahres award (Game of the Year – the most prestigious industry award). Hachette Boardgames has established itself as a key player in the board games market.

In 2024, digital revenues (digital audiobooks and e-books) represented 14% of Lagardère Publishing’s total revenue, versus 12% in 2023.

l Lagardère Travel Retail 

Revenue for Lagardère Travel Retail totalled €5,812 million in 2024, up 15.8% as reported and up 12.5% like for like. The difference between reported and like-for-like revenue is attributable to a €148 million positive scope effect linked to the acquisition of Tastes on the Fly (positive €132 million impact). The currency effect was virtually nil, the impact of the Polish zloty being offset by the Czech koruna, the Chinese yuan and the US dollar.

The figures below are presented on a like-for-like basis.

In France, business surged by 15%, supported in particular by an increase in air traffic, the success of the Extime Duty Free Paris joint venture with Groupe ADP, and network upgrades and sales initiatives rolled out across all networks and business lines.

The EMEA region (excluding France) recorded growth of 20%, driven by excellent performances in Italy (increased traffic at Rome Fiumicino airport), Romania (opening of the Duty Free concession in Bucharest), the United Kingdom (development of Duty Free activities on ferries) and Spain (extension of the network). 

In the Americas, Lagardère Travel Retail maintained its growth trajectory, with revenue up +6% from an already high basis of comparison, supported by the return to normal air traffic levels in the United States and strong momentum in Canada. 

Asia-Pacific recorded a decline of 13% due to lower business levels in North Asia as a result of the economic slowdown in China and network streamlining. 

l  Other Activities

Revenue for Other Activities in 2024 totalled €257 million, up 1.3% as reported and up 0.2% like for like. The difference between reported and like-for-like revenue is attributable to a €3 million positive scope effect. The impact of the disposal of Paris Match in fourth-quarter 2024 was partly offset by the consolidation of Euterpe Promotion at Lagardère Live Entertainment.

The figures below are presented on a like-for-like basis.

Radio was up 3%, driven by audience growth at Europe 1.

Press was down 5% due to lower advertising revenues. The international Elle brand licences saw growth of 2% compared with 2023. 

Lagardère Live Entertainment revenue rose by 2%, with very good performances from all venues, especially Folies Bergère in Paris. 

l  Prisma Media

Revenue for Prisma Media amounted to €293 million in 2024, down 2% year on year on a like-forlike basis.

Prisma Media is France's leading cross-media publisher, with 40 million monthly visitors, up 1% on 2023, despite the sale of Gala magazine in November 2023. Over 2024, Prisma Media maintained its digital audience leadership in terms of unique visitors: Télé-Loisirs is number one in entertainment and Voici in celebrities, Femme Actuelle remains among the top three women's sites while Capital is the leading media site in the Economy/Finance category. 

In 2024, Prisma Media pressed ahead with the development of its Luxury & Lifestyle unit. Harper's Bazaar increased its market share by five percentage points and intensified its presence on the social networks. Louis Hachette Group also strengthened this unit by acquiring Ideat (design and interior decoration) and The Good Life (lifestyle) magazines on 22 April 2024. In addition, a new quarterly magazine – Harper's Bazaar Intérieurs – dedicated to high-end interior design, was launched on 17 October 2024.

In 2024, Prisma Media modernised its brands and diversified its offering, with new formats for Télé Loisirs, Capital, Femme Actuelle and Voici.

Digital affiliation activities (e-commerce) and advertising revenues from Prisma Media brands on social networks continued to grow, with a 15% increase in subscribers compared to 2023.

II.            MAIN INCOME STATEMENT ITEMS

EBITA totalled €510 million in 2024, up €20 million on the €490 million figure recorded in 2023, mainly reflecting the improved performance of Lagardère's consolidated companies, despite higher restructuring costs.

EBITA at Lagardère came in at €498 million for 2024, up €36 million year on year, chiefly driven by business growth at Lagardère Travel Retail. EBITA before restructuring costs was up by €58 million, including €59 million at Lagardère Travel Retail thanks to a robust performance across all geographic areas and a positive contribution from equity-accounted companies, and €16 million at Lagardère Publishing on the back of a favourable sales mix in the United States and United Kingdom and ongoing action plans concerning the termination of the logistics transformation project in France. Restructuring costs in respect of Lagardère amounted to €66 million in 2024, versus €44 million one year earlier. They mainly concern Lagardère Travel Retail for €35 million, primarily in China; the Other Activities segment for €15 million, due chiefly to the reorganisation of music radio; and Lagardère Publishing for €16 million, mainly as a result of severance and reorganisation costs in the United States and Spain. 

EBITA at Prisma Media was €13 million, down €15 million year on year due to the impact of the Gala sale, the downturn in business, and higher restructuring costs linked to severance payments.

In 2024, the other items included in Profit before finance costs and tax represented a net loss of €109 million, chiefly reflecting:

► €41 million in gains and losses on disposals, mainly comprising the capital gain on the disposal of Paris Match magazine on 1 October 2024;

► €193 million in amortisation of intangible assets and acquisition- and disposal-related expenses, including €191 million for Lagardère, mainly relating to concession agreements at Lagardère Travel Retail, and €2 million for Prisma Media;

► the positive €47 million impact of applying IFRS 16 to concession agreements in the Travel Retail business at Lagardère.

As a result of the above, Group Profit before finance costs and tax came out at €401 million for 2024, versus €346 million one year earlier.

Finance costs, net amounted to €149 million in 2024, up on the 2023 figure due mainly to higher financing costs at Lagardère in connection with the refinancing operations carried out in the first half of 2024.

Interest expense on lease liabilities represented €107 million in 2024, versus €89 million in 2023, a rise of €18 million owing to the increase in lease liabilities.

In 2024, income tax expense amounted to €93 million, an increase of €28 million compared to 2023, due to Lagardère’s growth in Europe and the United States and to the tax impact of the capital gain on the disposal of Paris Match.

Profit from discontinued operations was nil in 2024 compared to €5 million in 2023, which included the earn-out from the sale of Lagardère Sports further to the settlement of the dispute with the Confederation of African Football.

Profit attributable to minority interests amounted to €39 million in 2024, versus €53 million in 2023.

In light of the above, profit – Group share amounted to €13 million for the year, versus €45 million in 2023. 

ADJUSTED PROFIT – GROUP SHARE

III.            OTHER FINANCIAL INFORMATION

CASH FLOW FROM OPERATIONS AND INVESTING ACTIVITIES

In 2024, cash flow from operations before changes in working capital and income taxes paid (operating cash flow) represented a net cash inflow of €786 million, compared with €644 million in 2023. This sharp rise was mainly due to the increase in recurring operating profit, despite the rise in provisions and in depreciation and amortisation which has no impact on cash flow.

Changes in working capital represented an inflow of €20 million over the year, compared to an outflow of €25 million in 2023. This was mainly attributable to Lagardère, which reported a very favourable change in working capital at Lagardère Publishing (softer reduction in trade payables), despite lower working capital at Lagardère Travel Retail following the impacts of the strong upturn in business in 2023 and the opening of Duty Free concessions. Prisma Media also reported a decrease in working capital.

Income taxes paid represented €91 million in 2024, €9 million higher than in 2023. This change reflects improved business levels at Lagardère, mainly in Europe, and the capital gain on the disposal of Paris Match, partially offset by the cross-border tax refund in the United States in 2024.

Purchases of intangible assets and property, plant and equipment represented an outflow of €294 million, versus €269 million in 2023. They were €24 million higher than in 2023 at Lagardère, due chiefly to investment projects rolled out on the back of tender wins at Lagardère Travel Retail, despite a €27 million decrease at Lagardère Publishing following the investments made in 2023 as part of the plan to transform logistics operations and IT infrastructure in France.

The Group’s free cash flow amounted to €421 million in 2024, versus €268 million in 2023, an improvement of €153 million.

Purchases of investments represented an outflow of €76 million in 2024, compared with €390 million in 2023 and mainly concerned the acquisitions of a 50% stake in Extime Travel Essentials Paris by Lagardère Travel Retail and the acquisition of the entire share capital of Sterling Publishing by Lagardère Publishing. 

Disposals of investments represented an inflow of €160 million, principally concerning the sale of Paris Match, as well as the repayment of financing by joint ventures in the Pacific region.

In all, operations and investing activities represented a net cash inflow of €505 million in 2024, versus a net cash outflow of €33 million in 2023, an improvement of €538 million.

IV.           KEY EVENTS SINCE 16 DECEMBER 2024

l  Implementation of a liquidity agreement

On 16 January 2025, Louis Hachette Group entered into a liquidity agreement in order to promote liquidity and make a market for its shares on Euronext Growth Paris. The liquidity agreement with Kepler Cheuvreux became effective on 20 January 2025.

l  New €75 million bank credit facility

On 24 January 2025, Louis Hachette Group took out a €75 million undrawn credit facility with a bank, due 24 January 2028. Under this facility agreement, the Group must comply with a covenant at 31 December each year.

l  Appointment of Arnaud Lagardère as a director and Vice-Chairman of Louis Hachette Group

On 13 February 2025, the Board of Directors unanimously decided to propose to the General Meeting to be held on 29 April 2025, to appoint Arnaud Lagardère, who currently holds 8.61% of the Company’s share capital, as a director for a four-year term.

As from the date of his appointment, Arnaud Lagardère (Chairman and Chief Executive Officer of Lagardère SA) will also be named Vice-Chairman of Louis Hachette Group.

V.        2025

After a solid performance in 2024, Louis Hachette Group is confident in the ability of its business to consolidate their leading positions on their respective markets.

Louis Hachette Group plans to distribute at least 85% of the dividends received as controlling shareholder of Lagardère SA and sole shareholder of Prisma Media.

This policy aims to maximise value creation by gradually deleveraging the Lagardère group and paying regular dividends to its shareholders, while safeguarding its ability to seize growth opportunities in line with its strategic objectives.

VI.          INVESTOR CALENDAR^[3]

•       First-quarter 2025 revenue: Friday, 25 April 2025 at 5:35 p.m.

•       Annual General Meeting: Tuesday, 29 April 2025 at 4:00 p.m. at Casino de Paris.

•       Ordinary dividend: the ex-dividend date for the ordinary dividend (proposed at €0.06 per share) for 2024 is expected to be 6 May 2025, with a payment date as from 9 May 2025.

•       First-half 2025 results: Thursday 24 July 2025 at 5:35 p.m. 

VII. APPENDICES

l      Reconciliation of Lagardère EBITA to Louis Hachette Group EBITA

VIII. GLOSSARY

Louis Hachette Group uses alternative performance measures which serve as key measures of the Group’s operating and financial performance. These indicators are tracked by management in order to assess performance and manage the business, as well as by investors to monitor the Group’s operating performance, along with the financial metrics defined by the IASB. These indicators are calculated based on accounting items taken from the consolidated financial statements prepared under IFRS and a reconciliation with those items is provided in this press release or in the full-year 2024 results presentation.

Ø       Like-for-like revenue

Like-for-like revenue is used by the Group to analyse revenue trends excluding the impact of changes in the scope of consolidation and in exchange rates. The like-for-like change in revenue is calculated by comparing:

•     revenue for the period and revenue for the prior-year period adjusted for companies consolidated for the first time during the period and consolidated companies divested during the period;

•     revenue for the period and revenue for the prior-year period adjusted based on the exchange rates applicable in the period.

The scope of consolidation comprises all fully consolidated entities. Additions to the scope of consolidation correspond to business combinations (acquired investments and businesses), and deconsolidations correspond to entities over which the Group has relinquished control (full or partial disposals of investments and businesses, such that the entities concerned are no longer included in the Group’s financial statements using the full consolidation method).

Ø Louis Hachette Group's 2023 pro forma income statement was prepared based on the pro forma financial data published in the Information Document dated 7 November 2024. It differs from the combined income statement for 2023 included in the 2024 consolidated financial statements, mainly because Lagardère was fully consolidated as from 1 December 2023 in the combined income statement but was fully consolidated over the entire 2023 reporting year for the purposes of this pro forma income statement.

Ø EBITA 

To calculate EBITA, the accounting impact of the following items is eliminated from Profit before finance costs and tax: gains and losses arising on disposals of shares and acquisition-related costs, the amortisation of intangible assets and impairment of goodwill and other intangible assets acquired through business combinations, other income and expenses related to transactions with owners, as well as items related to concession agreements (IFRS 16).

The reconciliation between EBITA and Profit before finance costs and tax is set out in the full-year 2024 results presentation.

Ø Adjusted profit – Group share

Adjusted profit – Group share is calculated on the basis of profit for the year, excluding nonrecurring/non-operating items, net of the related tax and of minority interests, as follows:

Profit for the year

Excluding:

•     Gains (losses) on disposals of assets 

•     Impairment losses on goodwill, property, plant and equipment, intangible assets and investments in equity-accounted companies

•     Net restructuring costs

•     Items related to business combinations:

-          Acquisition-related expenses

-          Gains and losses resulting from purchase price adjustments and fair value adjustments due to changes in control

-          Amortisation of acquisition-related intangible assets

•     Specific major disputes unrelated to the Group’s operating performance

•     Tax effects of the above items

•     Non-recurring changes in deferred taxes • Items related to leases and finance sub-leases:

-          Cancellation of fixed rental expense*** on concession agreements

-          Depreciation of right-of-use assets on concession agreements

-          Interest expense on lease liabilities under concession agreements -        Gains and losses on leases

•     Adjusted profit attributable to minority interests: profit attributable to minority interests adjusted for minorities’ share in the above items

= Adjusted profit – Group share

*** Cancellation of fixed rental expense on concession agreements is equal to the repayment of the lease liability, the associated change in working capital and interest paid in the statement of cash flows.

The reconciliation between profit and adjusted profit – Group share is set out in section II – Main income statement items of this press release.

Ø      Free cash flow

Free cash flow is calculated as cash flow from operations before changes in working capital, the repayment of lease liabilities and related interest paid, changes in working capital and interest paid plus net cash flow relating to acquisitions and disposals of property, plant and equipment and intangible assets. 

The reconciliation between cash flow from operations and free cash flow is set out in section III – Other financial information of this press release.

Ø      Net debt 

Net debt is calculated as the sum of the following items: 

•     Short-term investments and cash and cash equivalents 

•     Financial instruments designated as hedges of debt 

•     Current and non-current debt excluding liabilities related to minority put options 

The reconciliation between balance sheet items and net debt is set out in the 2024 results presentation.

***

A live webcast of the presentation of the full-year 2024 results will be available today at

6:00 p.m. (CET) on the Louis Hachette Group website (www.louishachettegroup.com).

The presentation slides will be made available at the start of the webcast.

A replay of the webcast will be available online later in the evening.

***

Press Contact                                                                                                                                   

communication@louishachettegroup.com                                                                           

Investor Relations Contact                                                                                                          

Emmanuel Rapin                                                                            +33 1 40 69 17 45                 ir@louishachettegroup.com

APPENDICES

IX. EXTRACTS FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF LOUIS HACHETTE GROUP SA AT 31 DECEMBER 2024

The consolidated financial statements of Louis Hachette Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and adopted in the European Union as of 31 December 2024. The Group’s consolidated financial statements will be published in full in the 2024 Annual Financial Report.

The Group’s consolidated financial statements have been audited. The audit report will be signed off once the specific verifications have been completed.

An extract from the consolidated financial statements, comprising the primary financial statements and selected information from the accompanying notes is presented below: Consolidated income statement

Consolidated statement of comprehensive income

(*) Net of tax.

Consolidated statement of cash flows

Consolidated balance sheet

Consolidated balance sheet

Consolidated statement of changes in equity

(a)     Louis Hachette Group’s capital increase and contribution premium on 13 December 2024 in consideration for the transfer of Lagardère SA and Prisma Group SAS shares held by Vivendi SE in connection with the partial demerger of Vivendi SE.

(b)    On 18 October 2024, Vivendi SE carried out a capital increase in Prisma Group SAS by offsetting a shareholder loan of €212 million.

SEGMENT DATA

2024 income statement

(*) Impairment losses on goodwill and intangible assets resulting from acquisitions.

(**) The breakdown of the impact of IFRS 16 on concession agreements and on gains and losses on leases is disclosed in the table below.

2024 statement of cash flows

-  Purchases             (293)        (2)            -               (295)

-  Disposals              1               -               -               1 

-  Purchases             (64)          (12)          -               (76)

-  Disposals              143           -               -               143 

(*) Cash flows relating to lease liabilities are shown within net cash from financing activities in the consolidated statement of cash flows.

Balance sheet at 31 December 2024

Balance sheet at 31 December 2023

X.             2023 COMPARATIVE INFORMATION

2023 pro forma income statement                                             

Louis Hachette Group's 2023 pro forma consolidated income statement was prepared based on the pro forma financial data published in the Information Document dated 7 November 2024. It differs from the combined income statement for 2023 included in the 2024 consolidated financial statements, mainly because Lagardère was fully consolidated as from 1 December 2023 in the combined income statement but was fully consolidated over the entire 2023 reporting year for the purposes of this pro forma income statement.

(*) Impairment losses on goodwill and intangible assets resulting from acquisitions.

(**) The breakdown of the impact of IFRS 16 on concession agreements and on gains and losses on leases is disclosed in the table below. 

2023 pro forma cash flow statement

Louis Hachette Group's 2023 pro forma consolidated cash flow statement was prepared based on the illustrative financial data published in the Information Document dated 7 November 2024. It differs from the combined cash flow statement for 2023 included in the 2024 consolidated financial statements, mainly because Lagardère was fully consolidated with effect from 1 December 2023 in the combined cash flow statement, but was fully consolidated over the entire 2023 reporting year for the purposes of this 2023 pro forma cash flow statement.

-  Purchases             (269)        (3)            (272)

-  Disposals              3                               3 

-  Purchases             (383)        (7)            (390)

-  Disposals              34             41             75 

(*) Cash flows relating to lease liabilities are shown within net cash from financing activities in the consolidated statement of cash flows.