French media group Lagardere SCA (MMB.FR) Wednesday said it expected profits to bounce back in 2011, a year in which it aims to refocus its main media assets.

For 2011, Lagardere expects operating profit from its media divisions to grow around 10% in 2011, a guidance that is based on the group's structure as of Jan. 1, so includes the international magazine assets it is in the process of selling to U.S. media giant Hearst Corporation, and excludes currency changes.

Chief Executive Arnaud Lagardere recently pledged to prune its portfolio of businesses and create a more focused conglomerate. As part of that process, the company earlier this year received a firm offer from Hearst for its international magazine business, including the publishing rights for fashion magazine Elle. The deal should close sometime before the end of the year, Chief Financial Officer Dominique D'Hinnin said.

Lagardere also wants to sell its 20% stake in Vivendi SA's (VIV.FR) pay TV Canal Plus France via an initial public offering, a process the group is determined to see through "whatever the case," CEO Lagardere said at a press conference, adding that Vivendi had failed to make an acceptable offer for the stake.

Arnaud Lagardere added that the group may only list part of the 20% stake and let the market set the price before going back to the negotiating table with Vivendi.

The price range for the IPO will be known on March 23, CFO D'Hinnin said.

As the group is shifting away from print media, it also has an ambitious project to turn its sports marketing division into a global leader. The sports business is, however, highly cyclical with revenue linked to big events such as the Olympic Games or soccer World Cup. As a result, analysts question whether Lagardere can build a sports business with enough scale and reach to ride out the lulls in the sporting calendar.

Lagardere said net profit for 2010 was EUR163 million up from EUR137 million in 2009, and is provisional based on a book valuation of EUR1.51 billion for its 20% Canal Plus France stake, for which the valuation could still change as the process is ongoing.

Lagardere said it will determine the final amount of the dividend to be paid for 2010 once the final financial results are published, but CEO Lagardere said the idea is to keep the dividend stable at EUR1.3 a share.

Operating profit for the full year from Lagardere's principal media activities, which is the main focus for analysts, rose 1% to EUR468 million in 2010, driven chiefly by the recovery in advertising revenue. This figure beat an average EUR466.3 million forecast by four analysts polled by Dow Jones Newswires.

Lagardere last month already reported a 0.9% rise in revenue to EUR7.97 billion.

In addition to press and broadcasting activities and sports marketing, the Paris-based group also has airport duty-free stores and publishes books, including the famous Stephenie Meyer Twilight Saga.

Besides the IPO of its stake in Canal Plus France, it has said repeatedly that it would also like to sell its 7.5% stake in European Aeronautic Defence & Space Co. NV (EAD.FR).

Lagardere shares Wednesday closed at EUR32.78.

-By Ruth Bender of Dow Jones Newswires and Max Colchester of the Wall Street Journal; ruth.bender@dowjones.com, max.colchester@wsj.com