Havas: First Quarter 2006 Revenue

    SURESNES, France, May 11 /PRNewswire-FirstCall/ -- Havas announces
 first quarter 2006 revenue of EUR339 million, up 2.6% on Q1 2005.
     At constant exchange rates, revenue growth would have been -2.1%. By
 comparison with the first quarter of 2005, the currencies with the most
 significant impact on performance were the US dollar and the Canadian
 dollar.
     On a like for like basis, organic growth was -2.4%.
     1. General comment
     The first quarter of 2006 is still suffering from last year's losses.
     2. Detailed comments by region
     The figures between brackets indicate the region's Q1 revenue in
 millions of euro.
     - France (70, versus 70 in Q1 2005)
     France's revenue is stable. Special mention should be made of the good
 growth in the traditional advertising and Corporate / Finance businesses.
     - Continental Europe (65, versus 60 in Q1 2005)
     Europe has continued the growth trend of year-end 2005, largely due to
 Spain and Italy.
     - Great Britain (40, versus 41 in Q1 2005)
     In the UK, marketing services, unlike traditional advertising, have
 seen their revenue grow.
     - North America (138, versus 136 in Q1 2005)
     Q1 2006 is the first quarter not to include the Volkswagen advertising
 account. It therefore has the drawback of being compared with a strong
 previous period (which included the Intel and Volkswagen revenues) and was
 adversely affected by the downturn in the Healthcare communications sector.
 Conversely, it was positively impacted by the stronger dollar.
     - Asia Pacific (13, versus 14 in Q1 2005)
     The region has not yet fully offset the loss of major accounts in 2005.
     - Latin America (13, versus 9 in Q1 2005)
     Though Mexico continues to be the driving force in Latin America, other
 countries such as Argentina, Columbia and Chile also performed well.
     3. New Business and creative quality
     Net new business stands at EUR620 million for the first quarter of
 2006.
     The main accounts won in Q1 2006 are as follows:
     - Traditional advertising: Disneyland Resort Paris (France, Spain,
 Great Britain, Belgium, Germany, Italy, the Netherlands and Scandinavia);
 Veolia (France); INNEOV (France and Belgium); LG Electronics (Russia); the
 Austrian Post (Austria); IKEA (Czech Republic) ; Thomapyrin de Boehringer
 Ingelheim (Germany); ExxonMobil, Lee Jeans, USA Today, Culligan Water,
 Assurant Health, Barilla, Cabot Wood Stain, and Bombay (USA) ; Tourism
 Western Australia (Australia)
     - Media: Goodyear Dunlop (France, Spain, Italy, Portugal, Greece,
 Belgium, the Netherlands and Luxemburg); Masterfoods, France's
 "Provence-Alpes-Cote-d'Azur" region, Sarbec, and the Accor group's "Formule
 1" hotels (France); Eidos (Great Britain, France and Germany); De Agostini
 (Great Britain); Agencia Tributaria, Guia Campsa and Fnac (Spain); Dialog
 (Poland); La Costena and Sanborns (Mexico); ExxonMobil (USA); the Ministry
 of Health and Ministry of Citizenship and Immigration (Canada)
     - Marketing services: Seb (Spain), Sheraton Hotel (Mexico)
     - Corporate communications: Orange (BtoB) worldwide
     Accounts lost included the Orange BtoC advertising account for France
 Telecom in France.
     The following awards were received for creativity during the first
 quarter:
     The New York Festival in January 2006 awarded prizes for the following
 television commercials: the "Fatboys", "Gumball" and "Our Own Experts"
 films for American Legacy, as well as "Hair" and "Teachers" for Peugeot,
 and "Lullaby" for Citroen.
     The Mobius Awards in February acknowledged the creative work of a
 number of Havas agencies (Arnold Boston, Euro RSCG London, Euro RSCG
 Taipei, Euro RSCG Sydney and BETC Euro RSCG) who together received 25
 awards.
     At the John Caples International Awards, Havas agencies EHS Brann, Euro
 RSCG 4D in New York and Paris received awards for their creativity in
 interactive advertising and direct marketing.
     The recent Grand Prix de l'A.P.P.M. (Association pour la Promotion de
 la Presse Magazine) granted its long-term achievements award to BETC Euro
 RSCG for its Air France advertisements since 1999, as well as its Media and
 Communications category prize for the 13eme Rue press campaign.
     The CyberWon Report, the interactive world's version of the Gunn
 Report, ranked the Euro RSCG network 4th worldwide.
     For the very first time, a French interactive production company,
 Streampower / MPG, received the prestigious Emmy award for "Best
 interactive TV program of the year" for its co-production of "CULT"
 alongside PPROD for TV channel France 5.
     4. Outlook
     Havas is clearly moving in the right direction and the high level of
 net new business in the first quarter of 2006 enables it to envisage
 positive growth in the second half-year.
     APPENDIX 1: ORGANIC GROWTH in Q1 2006
 
                                     Revenue in       Organic growth
                                       Q1 2006
                                                    Q1 2006 vs Q1 2005
                                   (EUR millions)
 
     France                              70               -1.4%
     Europe (excl. France and GB)        65               +5.8%
     Great Britain                       40               -2.6%
     North America                       138              -6.7%
     Asia Pacific                        13               -9.5%
     Latin America                       13              +19.1%
     TOTAL                               339              -2.4%
 
     APPENDIX 2: CALCULATION OF ORGANIC GROWTH
 
     1. Q1 2005 Revenue                                              330
     2. Exchange rate impact                                         +16
     3. Q1 2005 revenue at Q1 2006 exchange rates                    346
     4. Changes in scope of consolidation: acquisitions, disposals,   +1
     closures and others
     5. Q1 2005 Revenue at Q1 2006 exchange rates and scope of       347
     consolidation
     6. Q1 2006 Revenue                                              339
     7. Organic growth                                             -2,4%
 
 
     About Havas
     Havas (Euronext Paris: HAV.PA; Nasdaq:   HAVS) is a global advertising
 and communications services group. Headquartered in Paris, Havas has three
 principal operating divisions: Euro RSCG Worldwide which is headquartered
 in New York, Arnold Worldwide Partners in Boston, and Media Planning Group
 in Barcelona. A multicultural and decentralized Group, Havas is present in
 77 countries through its networks of agencies located in 44 countries and
 contractual affiliations with agencies in 33 additional countries. 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:
 www.havas.com
     Forward-Looking Information
     This document contains certain "forward-looking statements" within the
 meaning of the U.S. Private Securities Litigation Reform Act of 1995.
 Forward-looking statements relate to expectations, beliefs, projections,
 future plans and strategies, anticipated events or trends and similar
 expressions, concerning matters that are not historical facts. These
 forward-looking statements reflect Havas' current views about future events
 and are subject to risks, uncertainties, assumptions and changes in
 circumstances that may cause Havas' actual results to differ significantly
 from those expressed in any forward-looking statement. Certain factors that
 could cause actual results to differ materially from expected results
 include changes in global economic, business, competitive market and
 regulatory factors. For more information regarding risk factors relevant to
 Havas, please see Havas' filings with the U.S. Securities and Exchange
 Commission. 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 business wins, expressed in estimated annual billings.
 
     Contacts :
     Communications: Solenne Anthonioz
     Tel: +33-(0)1-58-47-90-27
     solenne.anthonioz@havas.com
 
     Investor Relations: Herve Philippe
     Chief Financial Officer
     Tel: +33-(0)1-58-47-91-23
     relations.actionnaires@havas.com
     2 allee de Longchamp 92281 Suresnes Cedex, France Tel
 +33-(0)-1-58-47-90-00 Fax +33-(0)-1-58-47-99-99 www.havas.com
     SA au capital de 171 552 757,20 euros - 335 480 265 RCS Nanterre - APE
 744 B
 
 

SOURCE Havas