French media giant Lagardere reported earnings for the three months ending 31 March 2008 on Tuesday. Consolidated revenues for the entire group were down 4 percent to 1.8 billion euros on a reported basis and up 2.1 percent on a like for like basis. The company blamed its flat revenues on the effects of the exchange rate, after seeing a 39 million euro loss following the appreciation of the euro against the dollar and the pound. They also took a 141 million euro loss following their divestment of Virgin stores and the Regional Daily Press business.

SEE ALSO: Lagardere Buys UK Entertainment News & Community Site DigitalSpy

But the French group also reported seeing a “sharp rise in digital revenues” in its media division Lagardere Active, which was boosted by a combination of solid “organic growth” and its recent acquisitions of French interactive media agency Nextedia, US automotive online ad network Jumpstart and French online women’s publisher Doctissimo. Digital revenues contributed 6.1 percent of Lagardère Active’s total revenues in the quarter as compared to 3.1 percent for the full year of 2007. Overall, the group said it had a “satisfactory start to the year” despite “tougher market conditions,” including a slowdown in ad sales. They noted that traditional advertising is on a “general downtrend”, especially in Japan, the United States, Spain and France, though ad spend in UK is bucking the slowdown. Emerging markets presented a difference picture, where ad sales were “robust,” especially in Russia and China (release).