Oracle stock falls after report reveals thin margins in AI cloud business
Introduction & Market Context
Louis Hachette Group (ALHG) reported a solid start to 2025, with Q1 revenue reaching €2,047 million, representing a 5.0% increase on a reported basis and 4.0% on a like-for-like basis compared to the same period last year. The results, presented on April 25, 2025, show the company’s continued momentum across most of its business divisions, with particularly strong performances in Publishing and Travel Retail.
The company’s stock closed at €1.53 on October 2, 2025, trading within its 52-week range of €1.17 to €1.78, suggesting moderate market confidence in the company’s performance and strategy.
Quarterly Performance Highlights
The Q1 2025 results demonstrate Louis Hachette Group’s resilience and diversification strategy, with total revenue increasing by €93 million compared to Q1 2024. The company’s two largest divisions, Publishing and Travel Retail, both delivered solid growth, while Prisma Media faced challenges in the declining print market.
As shown in the following comprehensive revenue overview:
The Publishing division posted the strongest growth at 8.0% (4.6% like-for-like), while Travel Retail grew by 4.7% (3.9% like-for-like). Other Activities showed a 14.0% decline in reported terms but 3.6% growth on a like-for-like basis. Prisma Media was the only division to show a decline in both reported (-3.2%) and like-for-like (-4.4%) terms.
Detailed Financial Analysis
Publishing Division
The Publishing division generated €623 million in revenue, an 8.0% increase over Q1 2024. This growth was driven by strong performance across all geographic regions, with particularly notable results in the UK market, buoyed by the success of "Onyx Storm" by Rebecca Yarros.
The division continues to pursue digitalization and diversification strategies. General Literature remains the largest segment at 50% of publishing revenue, followed by Illustrated Books (18%) and Partworks (11%).
The geographic breakdown of Publishing revenue shows balanced diversification with the UK and US & Canada each representing 30% of revenue, followed by France at 27%, as illustrated in the following chart:
Travel Retail Division
The Travel Retail division, Louis Hachette Group’s largest business segment, continued its growth trajectory with revenue of €1,301 million, a 5% increase following what the company described as a "record year in 2024." This suggests the division has fully recovered from pandemic-related travel disruptions and is now in expansion mode.
All regions contributed to growth except North Asia, with particularly strong performance in EMEA (excluding France), driven by concessions opened during 2024. The division also reported strong sales momentum in Travel Essentials and Dining segments.
The following chart shows the division’s revenue breakdown by geographic area and business segment:
The geographic distribution shows EMEA (excluding France) as the dominant region at 50% of Travel Retail revenue, followed by the Americas at 28%. By business segment, Duty Free & Fashion represents 36% of revenue, Travel Essentials 35%, and Dining 29%, indicating a well-balanced portfolio.
Other Activities
The Other Activities division reported Q1 2025 revenue of €54 million, representing a 4% increase on a like-for-like basis, despite showing a 14% decrease in reported terms. This growth was primarily driven by the News & Radio unit, which grew by 5% thanks to audience expansion at Europe 1 and growth in press and international licensing.
The division’s revenue breakdown shows Lagardère Live Entertainment & Other as the largest segment at 41%, followed by Radio (33%) and News (26%):
Prisma Media
Prisma Media reported Q1 2025 revenue of €69 million, a 3% decline compared to Q1 2024, reflecting the structural challenges in the print distribution market. Despite this overall decline, the company highlighted its leading position in digital audience and the further development of its Luxury & Lifestyle unit.
The division’s advertising revenue breakdown illustrates the significant shift toward digital, which now represents 61% of advertising revenue compared to 39% for print:
This digital transformation is a strategic priority for Prisma Media as it navigates the declining print market, with the company reporting increases in e-commerce activities and advertising revenue on social networks.
Geographic Distribution
Louis Hachette Group’s Q1 2025 results reveal significant shifts in its geographic revenue distribution compared to the same period last year. The company has reduced its reliance on the French market while expanding its presence in Western Europe and Eastern Europe.
The following world map illustrates the company’s global revenue distribution:
The US & Canada region now represents 28% of total revenue (up from 27% in Q1 2024), while Western Europe accounts for 26% (up from 24%). France’s contribution has decreased to 22% (from 25%), and Eastern Europe has increased to 14% (from 12%). These shifts reflect the company’s strategy of geographic diversification and its focus on growth markets.
Forward-Looking Statements
While the presentation did not include explicit guidance for the remainder of 2025, the strong Q1 performance in Publishing and Travel Retail suggests continued momentum in these key divisions. The company’s geographic diversification strategy appears to be yielding positive results, reducing reliance on any single market.
Challenges remain for Prisma Media as it navigates the structural decline in print media, though its digital transformation shows promising signs with digital now representing 61% of advertising revenue.
The company’s balanced portfolio across publishing, travel retail, and media, combined with its geographic diversification, positions Louis Hachette Group to maintain its growth trajectory through 2025, despite potential headwinds in specific segments like print media.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.