First Foundation's Eric Speron on the Lagardere SA situation: spin out, publishing, travel retail

Nov 23, 2024

Eric Speron, Managing Director and Portfolio Manager at First Foundation, shares his insights on Lagardere SA, an international group with diverse operations. He highlights the upcoming spinoff from Vivendi, exploring its implications. The discussion dives into the financial potential of Lagardere's publishing and travel retail sectors, emphasizing growth opportunities and market dynamics. Speron also examines the unique challenges faced in the evolving landscape of book publishing and airport retail, showcasing his investment thesis for savvy stakeholders.

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Episode notes

Intro

00:00 • 3min

Investment Insights on Lagardere

02:40 • 10min

Exploring the Dynamics of Book Publishing and Travel Retail

12:36 • 4min

Navigating Publishing and Retail Landscapes

16:08 • 24min

Navigating Investment Dynamics and Corporate Spin-Out Strategies

40:23 • 4min

Navigating Control: Lagardere's Future

43:55 • 7min

Eric Speron, Managing Director of Equities, PM of First Foundation Total Return (FBBYX) at First Foundation, Inc., joins the podcast to share his thesis on Lagardere SA (MMB.PA), an international group with operations in more than 40 countries worldwide. The Group focuses on three divisions: Lagardère Publishing (Books, E-Books, Partworks, Stationery, Board Games and Mobile Games), Lagardère Travel Retail (Travel Essentials, Duty Free & Fashion and Dining) and Lagardère News (Le Journal du Dimanche, JDNews and the Elle brand licence). The Group’s operating assets also include Lagardère Live Entertainment and Lagardère Paris Racing.

Eric Speron's Linkedin: https://www.linkedin.com/in/eric-speron-cfa-09925a3/

Chapters:

[0:00] Introduction + Episode sponsor: Daloopa

[2:31] What is Lagardere SA (MMB.PA) and why is it so interesting to Eric

[6:12] What is Eric seeing with Lagardere SA (MMB.PA) that the market is missing

[8:54] Vivendi's spin off of ownership stake in Lagardere in December

[13:21] Publishing business and growth catalysts

[28:25] Travel retail business and the opportunity here

[36:28] What does the sum of the parts look like; valuation question

[41:07] How does Eric think the spin off will play out

[47:44] Final thoughts

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