Lagardère writes down value of Canal Plus stake

Lagardère has reduced the value of its stake in pay TV provider Canal Plus by €300 million. The move leaves the French conglomerate’s 20% holding in Canal Plus worth about €1.2 billion, higher than the estimates of most analysts.

The write-down is the first made by Lagardère on its stake in the pay TV operator since it made the acquisition five years ago. Lagardère’s moves to dispose of the stake stumbled on its inability to agree a price with Canal Plus majority owner Vivendi and its own failure to carry through with its stated intention of floating the holding on the public market.

Lagardère has also cut the value of its Lagardère Unlimited sports rights unit by half, taking its cumulative impairment losses to €900 million, about one third of Lagardère’s market value. The company’s shares fell sharply on the news.

Lagardère is expected to announce full-year results in March. The company has said its fourth-quarter revenues amounted to €1.951 billion, flat year-on-year on a comparable basis. Lagardère Active, comprising media activities including TV, produced revenues of €367 million, stable on a comparable basis.