FRANCE. Lagardère Travel Retail posted revenues of €2,329 million in the first half, up by +37.9% on a reported basis and +32.4% like for like. The difference between reported and like-for-like revenue is attributable to a €66 million positive scope effect and a €5 million positive currency effect.
Revenue in France leapt by +27.3% on the back of growth in domestic and international air traffic, despite the impact of strikes. The EMEA region (excluding France) continued to accelerate, posting strong revenue growth of +36.7%, with strong performances in Italy (up +71%) and Belgium (up +46%), buoyed by an increase in American passengers and the gradual recovery in numbers of Chinese travellers.
North America maintained its strong momentum, with growth of +21.5% driven by sustained activity in the USA (up +16%). Revenue also bounced back in Canada, surging +69% in the quarter thanks to the recovery of international traffic.
Business in Asia Pacific resumed after being severely disrupted by the health crisis in the first half of 2022, delivering growth of +61.8%. This performance was largely attributable to North Asia, with growth of +60% driven by the sharp recovery in Chinese domestic traffic in particular, with borders reopening more gradually.
Lagardère Travel Retail reported €92 million in recurring EBIT, up by €66 million on first-half 2022 with all geographic areas contributing to the performance. This increase was driven by “revenue growth combined with disciplined margin control amid high inflation, along with efficiency gains brought about by the ramp-up of the LEaP operational efficiency plan”. There was a fall in one-off Covid-19-related subsidies, which still represented €14 million in first-half 2023.
Lagardère Group Chairman and Chief Executive Officer Arnaud Lagardère commented: “Our activity in the first six months of 2023 confirms the Group’s robust upward trajectory, with revenue up +19% year on year – our ninth consecutive quarter of growth. Lagardère Travel Retail posted a very solid performance on the back of the strong rebound in air traffic, while Lagardère Publishing maintained elevated revenue levels, demonstrating its resilience amid a less buoyant publishing market.” ✈
