HAVAS: Organic Growth: + 7.4% for Q1 2008
April 22 2008 - 5:19AM
PR Newswire (US)
Revenue: EUR 345 Million SURESNES, France, April 22
/PRNewswire-FirstCall/ -- "Havas reported organic growth for first
quarter 2008 in line with expectations. This confirms the positive
trend observed throughout 2007, underscores the validity of our
business model based on integration with digital at the core and
reflects our stronger position in key markets," Fernando Rodes
Vila, Chief Executive Officer of the Havas Group. 1. General
comments Havas reported organic growth of +7.4% at constant
exchange rates and consolidation scope. Q1 2008 revenue was EUR345
million, an increase of +2.5% over 2007, despite the appreciation
of the Euro against the US dollar and GB pound, which had a
negative impact on the Group of EUR20 million over the first three
months of the year. Net new business for the first quarter was EUR
510 million, 33% higher than the quarterly average in 2007.
Finally, all the Group's key performance indicators are in line
with expectations. One of the highlights of the first quarter has
been the expansion of the Group's presence in the UK and in the US
thanks to: - the acquisition of BLM, the leading independent media
agency, which has combined with Arena Media Communications (part of
Havas Media) in a deal which doubles Havas' media presence in the
UK. In addition, BLM Quantum in combination with Media Contacts
becomes the second largest digital media group in this key market.
- the acquisition of CAKE, the leading independent branded
entertainment agency in the UK, which will join Havas Entertainment
(part of Havas Media); its results will be consolidated with effect
from April 1, 2008. - the acquisition of KADIUM, a strong digital
agency in California, that we have merged with our advertising
agency Euro RSCG San Francisco in keeping with our strategy of
integrating digital vs leaving in a silo. 2. Detailed calculation
of organic growth by region EUROPE Growth was sustained across
Europe as a whole, with Spain, Portugal, Italy and Germany
achieving double-digit growth; all the other major countries
reported continued growth. NORTH AMERICA North America saw a
significant increase in growth across all our businesses. REST OF
WORLD Asia Pacific maintained its trend of double-digit growth. In
Latin America, growth in advertising and media expertise remained
satisfactory in most countries with the exception of Puerto Rico
and Colombia. 3. Net New Business(1) in Q1 2008 Net New Business
was EUR 510 million in the first quarter of 2008. 4. Creativity The
BIG WON Report (Worldwide Rankings) ranked BETC Euro RSCG the
world's 5th most awarded agency in TV and Euro RSCG 4D Amsterdam
the world's 8th most awarded agency for digital, as well as 10th
best digital campaign worldwide for Volvo 'The Hunt' (plus a 16th
place for Volvo 'A Product of Free Will'). Arnold Boston's "Singing
Cowboy" campaign for American Legacy was voted most awarded
campaign worldwide in TV and 2nd most awarded campaign (all
categories). Arnold featured in the Top 20 (no. 18) of the world's
most awarded agencies. Campaign Brief (Asia Pacific) put The
Furnace Sydney (Australia) in its Top 3 Hottest Agencies (under
Aus$ 100 million). Euro RSCG Shanghai was ranked 8th and Euro RSCG
Flagship (Thailand) 7th. At the first Asia Pacific Effies, The
Furnace took Silver for its Skins (sportswear) campaign. At the
Asia Pacific Advertising Festival (ADFEST), Euro RSCG Flagship won
2 Silver awards (Nanyang Sandals), while Euro RSCG India took 1
Bronze for Reckitt Benckiser and Euro RSCG Kuala Lumpur 1 Bronze
for Penline Art Supplies. The latest RECMA Compitches Report (Media
Agency competitiveness) ranked MPG UK 3rd in Europe and 5th in the
overall table. MPG USA came in at 7th in the US ranking. Euro RSCG
Prague, was named Agency of the Year in the Czech Republic for the
second year running. BETC Euro RSCG was named Agency of the Year in
France. Top Com Corporate Business (France) awarded Euro RSCG
C&O its Grand Prix in the Strategy Communication/B2B category
for EDF 'L'avenir est un choix de tous les jours'. Mobius Festival:
A Best of Show TV award went to the INPES Free Hugs campaign by
BETC Euro RSCG and a Winner each for PSA, TV Canal+ ('Brokeback
Mountain' campaign) and Canal Sat ('The Experts' campaign). Best of
Show Cinema In Flight went to the American Legacy Singing Cowboy
campaign by Arnold Boston, plus 1 Winner in the Outdoor category
for Dulcolax by Euro RSCG Dusseldorf. 5. Calendar The combined
shareholders' meeting will be held on May 29, 2008 at 8.00 a.m. at
the Havas head offices in Suresnes. Revenue for the first half-year
of 2008 will be published at the end of July. About Havas Havas
(Euronext Paris: HAV.PA) is a global advertising and communications
services group. Headquartered in Paris, Havas operates through its
two worldwide networks, Euro RSCG Worldwide and Havas Media, which
are headquartered in New York and Barcelona respectively, and
through a number of independent agencies renowned for their
creativity, such as Arnold Worldwide Partners. A multicultural and
decentralized Group, Havas is present in more than 75 countries
through its networks of agencies and contractual affiliations. The
Group offers a broad range of communications services, including
traditional advertising, direct marketing, media planning and
buying, corporate communications, sales promotion, design, human
resources, sports marketing, multimedia interactive communications
and public relations. Havas employs approximately 14,400 people.
Further information about Havas is available on the company's
website: http://www.havas.com/ Forward-Looking Information This
document contains certain forward-looking statements which speak
only as of the date on which they are made. Forward-looking
statements relate to projections, anticipated events or trends,
future plans and strategies, and reflect Havas' current views about
future events. They are therefore subject to inherent risks and
uncertainties that may cause Havas' actual results to differ
materially from those expressed in any forward-looking statement.
Factors that could cause actual results to differ materially from
expected results include changes in the global economic environment
or in the business environment, and in factors such as competition
and market regulation. For more information regarding risk factors
relevant to Havas, please see Havas' filings with the Autorite des
Marches Financiers (documents in French) and, up to October 2006,
with the U.S. Securities and Exchange Commission (documents in
English only). Havas does not intend, and disclaims any duty or
obligation, to update or revise any forward-looking statements
contained in this document to reflect new information, future
events or otherwise. (1) Net New Business : Net new business
represents the estimated annual advertising budgets for new
business wins (which includes new clients, clients retained after a
competitive review, and new product or brand expansions for
existing clients) less the estimated annual advertising budgets for
lost accounts. Havas' management uses net new business as a
measurement of the effectiveness of its client development and
retention efforts. Net new business is not an accurate predictor of
future revenues, since what constitutes new business or lost
business is subject to differing judgments, the amounts associated
with individual business wins and losses depend on estimated client
budgets, clients may not spend as much as they budget, the timing
of budgeted expenditures is uncertain, and the amount of budgeted
expenditures that translate into revenues depends on the nature of
the expenditures and the applicable fee structures. In addition,
Havas' guidelines for determining the amount of new business wins
and lost business may differ from those employed by other
companies. (1) Net account wins, expressed in estimated annual
billings. Full definition given on page 6 of this press release.
Contacts : Communications : Lorella Gessa Tel: +33(0)1-58-47-90-36
Investor Relations: Herve Philippe Chief Financial Officer Tel:
+33(0)1-58-47-91-23 Elsa Cardarelli Tel: +33(0)1-58-47-90-58
DATASOURCE: Havas CONTACT: Contacts : Communications : Lorella
Gessa, Tel: +33(0)1-58-47-90-36, ; Investor Relations: Herve
Philippe, Chief Financial Officer, Tel: +33(0)1-58-47-91-23, ; Elsa
Cardarelli, Tel: +33(0)1-58-47-90-58,
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