VIVHY Vivendi SE (PK)

French media group Lagardere SCA (MMB.FR) Thursday adjusted its full-year guidance to account for the recent sale of the group's international magazines business and lower-than-expected earnings at its sports marketing business Lagardere Unlimited.

MAIN FACTS:

- For 2011, the group now expects recurring EBIT from media activities guidance to decline by about 5% to 7% on a constant exchange rate basis. Without the PMI deconsolidation and given the revision of expected results for Lagardere Unlimited, recurring EBIT for 2011 would have risen slightly, the group said.

- Lagardere had previsouly targeted recurring EBIT from media activities to grow around 10% at constant exchange rates. This guidance was based on the group's structure as of Jan. 1, so included the international magazine assets it is in the process of finalizing the sale of to U.S. media giant Hearst Corporation.

- Lagardere also said that the planned initial public offering of its stake in Canal Plus France "does not appear to be feasible on good terms in light of the current market environment." The group said that it remains committed to selling the stake in the pay-TV, the rest of which is owned by Vivendi SA (VIV.FR), once market conditions allow.

- Lagardere said net profit for the first half dropped to EUR28 million from EUR80 million last year.

- Recurring EBIT from media activities, which is the main focus for analysts, fell 7.9% to EUR168 million in the first six months. This figure was below the EUR183 million forecast by analysts.

- Revenue in the first half rose 0.2% to EUR3.72 billion, meeting analyst views.

- By Paris Bureau, Dow Jones Newswires; +331-4017-1740; ruth.bender@dowjones.com

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