HAVAS: H1 2007 Revenue Shows Organic Growth of +4.4% First Half Revenue: EUR729 million

Organic Growth is +5.4% in the Second Quarter, After +3.2% in the First

Quarter, Making +4.4% for the First Half

Net New Business(i) Remains Strong: EUR697 Million in the Second Quarter

Following EUR545 Million in the First Quarter, for a Half-Year Total of

EUR1,242 Million



    SURESNES, Paris, July 26 /PRNewswire-FirstCall/ --
     - Strong Growth in Media and in Healthcare for the First Semester
     1. Overview
     After a satisfactory first quarter, Havas (NASDAQ:  HAVS) reported an
 increase in organic growth of +5.4% for the second quarter, giving organic
 growth of +4.4% for the first half. For the first time in six years,
 quarterly growth was in excess of 5%.
     The appreciation of the euro against the US dollar had a negative
 impact on the Group of EUR20 million in the first six months of the year by
 comparison with the same period in 2006.
     First-half revenue in 2007 was nonetheless EUR729 million, an increase
 at constant exchange rates of +1.3% compared to first half 2006.
     Net new business for the first half was EUR1,242 million, an increase
 of +38% on first half 2006. Net new business for the second quarter was
 EUR697 million, an increase of +44% on the quarterly average for 2006.
     2. Detailed analysis of first half 2007 by region
     The first half was marked by major new account wins from the previous
 year, including: Reckitt Benckiser, Sanofi-Aventis, Pfizer, Exxon Mobil,
 Progressive Direct, SFR, Banco Santander, GSK and Barclays.
     The main Group's businesses contributed to organic growth in the second
 quarter, most notably healthcare communication and media consulting.
 Multimedia business also continued to progress. Performance was dynamic in
 all the regions.
     The figures in brackets for each region show revenue (EUR million) and
 organic growth for the periods specified (first half 2007 and 2006).
     - France (160, +2.4% in H1 2007 versus 156, +2.6% in H1 2006)
     Euro RSCG maintained a high rate of organic growth in the second
 quarter, particularly in traditional advertising, healthcare communication
 and CRM.
     Sports and multimedia communication consulting also contributed to
 second-quarter growth.
     New agency H, whose creation was announced in June, started out in line
 with Group expectations.
     - United Kingdom (88, +1.7% in H1 2007 versus 84, -1.0% in H1 2006)
     The UK returned to organic growth in the second quarter at +3.4%.
 Traditional advertising via Euro RSCG came back strongly to make a
 significant contribution, as did the public and press relations businesses,
 financial communication and marketing services. Media and sports
 communication consulting also made solid progress.
     - Europe, excluding France and the United Kingdom (164, +8.7% in H1
 2007 versus 151, +8.2% in H1 2006)
     Europe continued to grow in the second quarter at +9.1%. Media
 consulting performed very strongly, in particular Havas Media in Spain,
 Poland, Italy and Germany.
     The main countries of Southern Europe enjoyed double-digit growth, as
 did Ireland, Belgium and Denmark. Central European countries also
 contributed to the region's growth.
     - North America (251, +1.6% in H1 2007 versus 274, -5.3% in H1 2006)
     North America enjoyed a return to organic growth in the second quarter
 at +4.0%, driven by healthcare and corporate communication, CRM and media
 consulting. Most of the traditional advertising agencies, particularly New
 York and Chicago, reported dynamic growth. Arnold Boston also recovered
 strong momentum in the second quarter. Winning the Sears account (MPG -
 Havas Media) is a landmark event in growing the media consulting business
 in this region.
     - Asia Pacific (30, +9.7% in H1 2007 versus 28, -4.8% in H1 2006)
     Asia-Pacific continued to report dynamic growth in the second quarter
 for most countries, with growth for the region at +10.6%. The first-half
 win of the Dell account will be a further boost to the region's growth.
     - Latin America (36, +16.8% in H1 2007 versus 28, +16.5% in H1 2006)
     Growth in advertising and in media consulting remained remarkably high
 in almost all the Latin American countries, at +11.2% in the second
 quarter. Particularly strong growth in media activities achieved in Chile,
 Brazil, Colombia and Argentina.
     3. Net New Business 2007
     Net New Business for the first half of 2007 was EUR1,242 million.
     The main account wins in the second quarter of 2007 were as follows:
     - Global: Volvo
     - Advertising: Kraft Foods (USA and Canada); Dell Computers (APAC and
 Japan); eBay and Tex for Carrefour (France); 3 and Yakult (UK); FIEP
 (Portugal); Coldwell Banker (USA); Aeromexico (Mexique); Radio One (India)
     - Media: Sears and Diageo (USA); Expozaragoza 2008 (Spain); Generali
 (Italy); Skins (UK); Etam (France); Reckitt Benckiser (Thailand and
 Switzerland); Dell (APAC)
     - Marketing services: Dairy Farmers of Great Britain and Working Links
 (UK); Dos Equis (USA)
     - Corporate: Moroccan Tourist Office (France, UK, Germany, Spain,
 Italy, Belgium, Netherlands, Scandinavia and Russia)
     Euro RSCG Asia was ranked first for New Business by Media magazine for
 the first half of 2007.
     4. Creativity awards
     In January 2007, Euro RSCG was named 2006 Global Network Agency of the
 Year by Advertising Age and Advertising Network of the Year by Campaign,
 the top advertising trade publications in the USA and UK respectively.
     In the second quarter of 2007, Group agencies won numerous
 international and regional awards.
     At the International Andy Awards, Arnold Boston took a total of five
 awards, including four for its American Legacy Foundation/Truth campaign
 and another for Timberland.
     Euro RSCG Buenos Aires, Euro RSCG Madrid and Euro RSCG Santiago shared
 a total of 20 awards at FIAP (Festival Iberoamericano de la Publicidad).
 Euro RSCG Buenos Aires was the second most awarded agency at the Festival
 for its campaigns for the Peugeot 206 and for Sony/Playstation 2.
     MPG Argentina won an award at the Venice Festival of Media organised by
 Cream magazine. They were awarded a 'Yahoo! Idea of Festival' for in the
 best campaign launch category for Cepita (a Coca-Cola orange juice drink
 brand).
     Arnold Boston won yet more awards for its American Legacy
 Foundation/Truth campaigns at the One Show Awards, while McKinney, Arnold
 Boston and Euro RSCG 4D Amsterdam all won One Show Interactive Awards for
 their work in interactive communication.
     Clio Awards went to Euro RSCG London for its "Ice-skater" campaign for
 Citroen, to Euro RSCG New York for the Jaguar XKR launch film and to Euro
 RSCG Buenos Aires for its "Soccer" and "NBA" campaigns, and its "Sports
 Campaign" for Sony.
     MPG Portugal won the 2006 Award for the "Best Media Agency" for the 5th
 consecutive year by Media & Advertising Magazine.
     MPG Spain was awarded the "Lluna de Oro" for 'Best Use of TV and
 Cinema" at The Festival de Publicitat La Lluna. The Campaign was called:
 "Extremely Sexy Watches" and it was developed for a line of Paul Varsan
 watches.
     At the U.S Effies, which are awarded for the most effective
 communication campaigns in each country, McKinney took home four awards,
 including one Gold, for its campaigns for Full Frame Documentary Film
 Festival, Oasys Mobile, and Nasdaq. Arnold Boston, Euro RSCG New York, and
 Euro RSCG Life Interaction were also among the winners.
     BETC Euro RSCG carried off the "Grand Prix des Grands Prix" trophy
 marking the 30th anniversary of the Strategies Grand Prix for advertising,
 awarded to "The March of the Emperor" for Canal+.
     At the New York Festival Arnold Boston, Euro RSCG 4D Amsterdam, Euro
 RSCG Zurich, Euro RSCG Delhi, BETC Euro RSCG and Euro RSCG Flagship took
 home a total of 17 awards, including 4 Gold World Medals.
     The Havas Group won 8 Lions at the 54th International Advertising
 Festival in Cannes: these included 2 Silver Lions, one in the Outdoor
 category for Euro RSCG Kuala Lumpur and the second in the Cyber category
 for the campaign entitled "The Hunt" by Euro RSCG 4D Amsterdam for Volvo; 5
 Bronze Lions, awarded to Arnold Italy in the "Direct" category for "Voodoo
 Kit" by Arnold Guerilla, to Euro RSCG Dusseldorf in the Media category for
 its "Pimple" for Reckitt Benckiser/Clearasil, and to Arnold Boston in the
 Film category for its three "Truth" campaigns for the American Legacy
 Foundation. Last but by no means least, Mariangela Lacedra of Euro RSCG
 Milan took gold in the Young Creatives Film Award.
     Media Contacts Spain was awarded the 'Best Interactive Media Agency' of
 the Year by Interactive Magazine.
     AMO, the financial communication network of Euro RSCG Worldwide, was
 recently ranked top financial PR agency of first half 2007 by M&A
 intelligence service MergerMarket.
     5. Outlook
     The level of first half 2007 revenue shows that Havas is on the road to
 recovery. The Group will publish its first half 2007 results in September.
     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:
 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.
     SA au capital de 171 860 763,60 euros - 335 480 265 RCS Nanterre - APE
 744 B
     (i) Net account wins, expressed in estimated annual billings. Full
 definition given on the last page of this press release.
     Contacts:
 
     Communications:
 
     Lorella Gessa
     Tel: +33-(0)1-58-47-90-36
     lorella.gessa@havas.com
 
     Solenne Anthonioz
     Tel: +33-(0)1-58-47-90-27
     solenne.anthonioz@havas.com
 
     Investor Relations:
 
     Herve Philippe
     Directeur Financier du Groupe Havas
     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
     http://www.havas.com/
 
 

SOURCE Havas

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.