By Dominique Vidalon
PARIS (Reuters) - French media group Lagardere (LAGA.PA: Quote, Profile, Research, Stock Buzz), the world's largest consumer magazine publisher, is banking on the Internet and sport to drive its growth in coming years, its chief financial officer said on Tuesday.
Lagardere plans small and mid-sized Internet acquisitions, targeting content-based Websites with high margin potential in countries where it already has strong positions, Dominique d'Hinnin told the Reuters Global Technology, Media and Telecoms Summit in Paris.
"Our main challenge today is growth. Where will this growth come from? Digital technologies ... and sport activity," he said. "We expect a two-digit growth rate for Sportfive. The sports market is growing 5-10 percent a year. We expect to do slightly better," he said.
Sportfive manages television and marketing rights contracts, notably for soccer, and is a key asset at a time when content is free on the Internet because it can attract subscribers to sites and gain revenue.
"Technology leads to audience fragmentation. Audiences are getting thinner and sport brings massive audience ... The value of these audiences increases as much as fragmentation increases," he said.
DIGITAL PUSH
Lagardere has been under pressure for years to find a new engine of growth after lifting its top line mainly through acquisitions.
In January, it unveiled a three-year plan aimed at boosting flagging margins at its magazines business and accelerating its digital development through organic growth and acquisitions. Continued...
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