French defence, publishing and radio conglomerate Lagardère on Thursday added its name to the growing list of media companies issuing profit warnings following this month’s attacks on New York and Washington.
Operating income forecasts for the company’s core media division, publisher of Elle and Paris Match, have been cut from “double digit” to between 5% and 12% for the full year.
“At the end of August, Lagardère Media was in line with its forecast of double digit annual operating income growth rate,” said the company. “However, recent global political events and their impacts on the future economic environment have created new [sic] business prospects in coming months.”
Lagardère has seen its shares fall over 30% on France’s CAC-40 index since the attacks. They are down 46% since the start of the year.
The media arm, which provides over 70% of Lagardère’s operating income, posted first-half operating profits of E140 million, a rise of 13.8% year-on-year and in line with the double-digit full-year forecasts.
News source: Financial Times