PARIS, October 29 /PRNewswire-FirstCall/ --
- Sharp improvement in organic growth (+9.3% in Q3, after +5.4% in Q2
and +3.2% in Q1), which has risen to +6.0% for the first nine months of
- Revenue progressing well, totalling EUR1,098 million for the first
nine months of 2007, i.e. a +3.3% increase over the corresponding period in
- Net new business(1) has continued its positive trend: EUR1,498
million over the first nine months of 2007
"We are very happy with our growth in Q3, and feel all the more
comfortable about achieving our objectives for the full year 2007". -
Fernando Rodes Vila, CEO of the Havas Group.
After a satisfactory first half-year, Havas is now posting +9.3%
organic growth in Q3 (after +5.4% in Q2 and +3.2% in Q1). This is the
strongest quarterly organic growth figure since 2000.
The strengthening of the Euro against the US dollar adversely affected
the group by EUR 29 million in the first nine months of 2007 by comparison
with the corresponding period in 2006.
Nevertheless, at current exchange rates, revenue for the first nine
months of 2007 stands at EUR1,098 million, up +3.3% over the first nine
months of 2006.
The revenue recorded over the first nine months of 2007 is confirmation
that the group has been turned around. The main financial indicators at
September 30, 2007 are in line with the budget. The Q4 revenue figures will
be published in February 2008.
2. Detailed presentation of Q3 by region
The first nine months of 2007 saw Havas reap the benefits of the new
accounts won in 2006, notably Reckitt Benckiser, Sanofi-Aventis, Pfizer,
Exxon Mobil, GSK, Progressive Direct and SFR.
Most of our businesses contributed to the organic growth achieved in the
third quarter, especially media expertise and digital which continues to be a
high growth sector.
Revenue Q3 Q3 9 Months 9 Months
2007 2006 2007 2006
EUROPE 200 181 613 570
France 76 67 236 221
UK 46 44 134 128
France and UK 78 70 242 220
NORTH AMERICA 128 130 379 404
REST OF THE WORLD 40 32 106 89
AP AC 19 15 49 44
LAT AM 21 17 57 45
TOTAL 368 343 1098 1063
Organic Growth Q3 Q3 9 Months 9 Months
2007 2006 2007 2006
EUROPE 8,7% 8,1% 6,0% 5,2%
France 8,0% 3,4% 4,2% 2,8%
UK 4,2% 3,5% 2,6% 0,5%
France and UK 12,3% 16,4% 9,9% 10,6%
NORTH AMERICA 9,1% -7,1% 4,0% -5,9%
REST OF THE WORLD 14,0% 7,9% 13,7% 5,9%
AP AC 18,9% 1,8% 13,1% -2,6%
LAT AM 10,0% 13,9% 14,2% 15,5%
TOTAL 9,3% 1,9% 6,0% 0,7%
The trend is good in most European countries. Europe excluding France
and Great Britain has achieved strong double-digit growth due largely to
media expertise in the southern European countries and Germany, and to
advertising especially in Spain and Italy. The excellent performance of
France was driven by corporate communications and the digital sector. Great
Britain is strengthening its growth with a strong performance from our
advertising, direct and digital businesses.
The outstanding performance of the North America region was due to the
sharp acceleration of all our activities, especially in the digital sector
for Euro RSCG 4D Chicago and New York, but also Media Contacts, media
expertise and advertising in the case of Arnold.
REST OF THE WORLD
In the rest of the world, Q3 was the third consecutive quarter of
double-digit growth. In Asia Pacific, growth was driven by India,
Australia, Singapore, Japan and Korea where all our businesses performed
well. Growth in Latin America is still very high in most countries we
3. Net New Business in 2007
Net New Business totalled EUR256 million in Q3 2007, bringing the total
for the first nine months to EUR1,498 million versus EUR1,580 million for
the corresponding period in 2006.
The main accounts won in Q3 were the following:
- Advertising: Direct TV and Virgin Atlantic Airways (USA); Kraft Foods
and Hershey's (Canada); Weight Watchers and Kyocera Mita (Germany);
Ministerio Fomento (Spain); Worten (Portugal); Fairfax Digital (Australia);
and Honda (Indonesia).
- Media: Credit Suisse and Air Asia (Great Britain); Tri Pictures
(Spain); Festina (Italy), and Bwin (Argentina).
- Marketing services: British Sky Broadcasting and HMV (Great Britain).
4. Awards for Creativity
The following campaigns received awards for creativity in Q3 2007:
At the Grand Prix de l'Affichage event for posters, BETC Euro RSCG
carried off the Grand Prix for "Pot de Depart" on behalf of Canal+, while H
also received an award for the Imagine'R campaign.
The Grand Prix Strategies du Design awards saw W&Cie take two prizes
for interior and exterior renovation at the Velizy 2 shopping centre, and
for the PPR group's annual report.
The WebAwards, for corporate website creativity, bestowed 13 awards on
Arnold Boston, four awards on Palm Communication in Canada, and a further
two awards on Euro RSCG 4D Portland as well as one award on Euro RSCG 4D
Euro RSCG and MPG Argentina were gold prize winners at the Effie Awards
in the financial services category for the "Estoy Mirando" campaign for
BBVA Banco Frances. MPG Argentine also received a silver award for the
Coca-Cola "Levante la Mano" campaign.
Euro RSCG 4D Sydney carried off five awards for its client Sony
Australia at the Australasian Promotion Marketing Association's event.
At the Promotion Marketing Awards for Asia, Euro RSCG 4D Beijing
received three awards including the Dragon of China for its "Print it!
Punch it!" campaign on behalf of Epson. Euro RSCG 4D Shanghai took a Gold
Dragon award for the Johnnie Walker Black Label campaign it produced for
Moet Hennessy Diageo.
Euro RSCG Prague carried off five awards at the Moscow International
Festival of Advertising, including a gold award for cosmetics brand
MPG International received Media & Marketing's award for the best
campaign in the financial services and advisory category with "I Shares
Week" produced for Barclays Global Investors.
At the Marketing and Interactive Excellence Awards, Media Contacts USA
received a gold award in the product launch category with "Freedom of the
Seas" for Royal Caribbean.
B6 in Argentina took three CAMPRO (Camera Argentina de Empressas de
Marketing Promocional) awards for the promotional launch of Coca-Cola's
"Putting Coke in the picture".
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:
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 gains, expressed in estimated annual billings. The
complete definition can be found on page 4 of this release.
Directeur Financier du Groupe Havas,