Lagardere's publishing division saw revenues up 11 percent to E897 million(US$1.23 billion), with the Time Warner Book Group providing a E82 million(US$112.7 million). The unit was not consolidated into the company results until April 2006.On a like-for-like basis, the publishing division's revenues rose 1.7 percent. Lagardere said the division's second-half revenue growth will be hit by weak sales in its French literature and Larousse dictionary businesses.Lagardere's publishing units operate in Spain (Education), France (literature and education), the UK (Hodder) and US. Publishing revenues without the US only rose 1.7% and reflected conditions in France (market issues) and Spain (timing). The company press release did note strong growth in the US due to title growth.
For their outlook for publishing they noted the following:
The 2007 second-half prospects for Lagardère Publishing are good, especially for Education in France and Spain (where the effect of publication timing differences is set to be recouped in the third quarter) and for Literature in the United States. However, sales growth will as expected be dented by weak sales in Literature in France (a low-margin business) and at Larousse(elimination of loss-making editorial lines).Businesswire
All in all a strange combination of assets when it is stated in black and white. In the US it is all the rage to de-comglomerate...one wonders.