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France's Fnac Darty expects more synergies from merger in 2017
October 19, 2017 / 5:18 PM / a month ago

France's Fnac Darty expects more synergies from merger in 2017

Oct 19 (Reuters) - French music and book retailer Fnac Darty said on Thursday it now expects to realise a larger proportion of cost savings this year from its merger with Darty.

The group expects to record 60 percent of its targeted 130 million euros ($154 million) in synergies from the 2016 merger this year, a 10 percentage point increase from the forecast it gave when it presented half-year results.

“The Fnac Darty integration is continuing and the deployment of synergies is ahead of schedule, which allows us to raise our objective to at least 60 percent of planned synergies to be deployed this year,” said Enrique Martinez, the company’s chief executive officer.

It left its target of 130 million euros in synergies by the end of 2018 unchanged however.

The retailer, which is 24 percent-owned by its German peer Ceconomy, reported a 5.8 percent rise on a like-for-like basis in its quarterly revenues which came in at 1.79 billion euros.

Revenue growth was driven by telephony, video games and small household appliances but also benefited from a favourable base effect and a significant calendar effect.

“The longer summer sales period compared to 2016 and the high number of product launches are driving sales, in this quarter specifically,” the company said in a statement.

Fnac Darty, which is also present on the Iberian peninsula, said the level of its sales in Spain was good despite the negative impact of attacks carried out by an Islamist militant cell in Catalonia in August.

It warned, however, that the business outlook in Spain over the coming quarters was harder to predict because of the political environment in the country which has been unsettled by a Catalan vote on independence this month. ($1 = 0.8452 euros) (Reporting by Piotr Lipinski; Editing by Adrian Croft)

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