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Havas reports marginal organic growth in revenue

MUMBAI: Global ad and communications service group, Havas, has reported results for the third quarter ended, 30 September, 2005.

It generated third quarter revenues of 341 million euros reflecting an organic growth of 3.9 per cent. The improvement in organic growth this quarter is due primarily to the good performance of traditional advertising activities and an improvement in marketing services (CRM). However, revenue for the first nine months of 2005 came to 1,041 million euros compared to 1,086 million euros for the same period last year in IFRS, a 4.1 per cent decline.

The performance was good in the US but Asia continues to suffer from the loss of the Intel account.

 

 

Organic growth in France came to +2.6 [er cent in the third quarter and 0.9 per cent for the first nine months of 2005this year. This notable improvement was fuelled by good performance in media (MPG), healthcare and corporate/finance (Euro RSCG C&O) activities. Organic growth in the UK was flat at .1 per cent for the third quarter. A good performance from the traditional advertising business offset a disappointing quarter in media and healthcare.

In the US, Havas posted a seven per cent organic growth in third quarter 2005, and 2.6 per cent for the first nine months of 2005. This is a marked improvement over the .4 per cent organic growth of first half 2005. Although this region was hurt most by the loss of significant clients, the growth in revenues from clients won by Arnold and Euro RSCG New York in late 2004 and early 2005 made it possible to post a good performance for the quarter.

 

The Asia-Pacific region once again posted negative organic growth at -8.6 per cent in third quarter 2005 and -6.9 per cent for the first nine months of the year after -5.9 per cent for first half 2005. Overall, Havas managed to get new business worth nearly 760 million euros for the first nine months of 2005.

Accounts won during third quarter if 2005 included Joker and Le Figaro (France), Palmers (Austria, Germany, Central and Eastern Europe), Hershey's (US), and Ebay (China) in the advertising sector. In the media, it got accounts including Peugeot (Germany), Napster (Germany), BBVA (Mexico and Argentina), and Hershey's (US).

Accounts lost included Volkswagen (US) and Argos (UK) in advertising, Peugeot (France) and Nestle (Spain) in media.

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