Havas: Havas Q1 2007 Revenue
Organic Growth: +3.2%
Revenue: 337 MEUR
Net New Business(1): 545 MEUR
SURESNES, France, May 11 /PRNewswire-FirstCall/ -- 1. Overview Havas (NASDAQ: HAVS) has achieved +3.2% organic growth on a like for like basis. At constant exchange rates, this growth would be +3.3%. The strong euro penalised the group and the US dollar impact during the first quarter was -11 MEUR. At current exchange rates, the group's revenue in Q1 2007 was 337 MEUR, which is virtually stable in relation to Q1 2006. Furthermore, net new business in the first quarter totalled 545 MEUR, i.e. 13% higher than the average quarterly figure in 2006. 2. Detailed presentation of the first quarter by region The good start to the year was boosted by new accounts won last year, particularly those of Reckitt Benckiser, Exxon Mobil, Sanofi-Aventis, Progressive Direct, Danone, SFR, Barclays and Pfizer. With +3.2% organic growth, the group's first-quarter performance was good in most regions: France returned to growth, Europe fared very well, Asia Pacific confirmed its high growth trend, and Latin America continued to post double-digit growth. Elsewhere, the UK was stable and North America was slightly down on the previous period. For each geographic region, the figures in brackets indicate revenue in MEUR and organic growth for the period specified: - France (73, +2.6% in Q1 2007 versus 70, -1.4% in Q1 2006) Euro RSCG continued to record strong organic growth, with excellent performances in CRM, healthcare communications and traditional advertising. - Great Britain (42, 0.0% in Q1 2007 versus 40, -2.6% in Q1 2006) The Q1 revenue stream in Great Britain was largely attributable to traditional advertising and corporate communications, but the region was penalised by certain marketing services. - Europe, excluding France and Great Britain (70, +8.2% in Q1 2007 versus 65, +5.8% in Q1 2006) Europe continued its remarkable organic growth of 2006 right into the first quarter of 2007, particularly Havas Media in Spain. The whole region posted growth (especially the central European countries) with the exception of the Netherlands. - North America (122, -0.8% in Q1 2007 versus 138, -6.7% in Q1 2006) The Q1 situation was positive in media buying, healthcare and corporate communications, but contrasted in traditional advertising and marketing services. Certain agencies returned to high growth while others were closer to the bottom of the cycle. Arnold Boston should reap the benefits of the recently awarded Volvo account from the second half of the year onwards. - Asia Pacific (14, +8.6% in Q1 2007 versus 13, -9.5% in Q1 2006) The region has continued the growth pattern of year-end 2006 and the trend is now spreading to a large number of countries. - Latin America (16, +24.6% in Q1 2007 versus 13, +19.1% in Q1 2006) In Latin America, all the indicators are positive and double-digit growth was recorded once again in the first quarter. 3. Net New Business in 2007 Net New Business totalled 545 MEUR in Q1 2007. The main accounts won in the first quarter were the following: - Traditional advertising: Transavia, Marques Avenue, Daunat, Equidia, Sudoku / Francaise des Jeux, Century 21, Saveol and Dr Pierre Ricaud (France); Pets at Home and EDF Energy (Great Britain); Promhogar (Spain); Modra Pyramida (Czech Republic); Virgin Mobile and DirectTV(USA); CTI Movil (Argentina); Aviva Direct (Singapore); Thanachart Bank (Thailand); 2008 Olympic Equestrian Events (Hong Kong) - Media: Compagnie des Alpes, GrandOptical, Gaumont and Transavia (France); Reckitt Benckiser (Belgium); National Express, EDF, E ! Entertainment, and the BBC (Great Britain); Grupo Damm, Arag, Magners, Proein and Expedia (Spain); Generali Insurance, ING Direct and Meetic (Italy); Magners, Tunisian Tourist Board, Thalia, Thalys and AutoFit (Germany); Pearle Vision (USA); Mitsubishi Motors (India). - Marketing services: Air France (France) ; Britisch Sky Broadcasting Limited (Great Britain) ; Telekom Austria (Austria). - Corporate: Le 15, Mines de la Lucette, and Groupe Chaloub (France). 4. Awards for Creativity At the Mobius Awards in February 2007, BETC Euro RSCG won the Mobius statuette for its work entitled "The March of the Emperor" for Canal+, and Arnold Boston received awards for "Good Samaritans" for the American Legacy Foundation, and for the "Flower" campaign it produced for Fidelity. At the Top Com Corporate Business awards, Euro RSCG C&O carried off the Grand Prix Top Com Design for its campaign on behalf on the French Red Cross. Euro RSCG C&O also received a Gold Top Com for INPES (French national health institution) and three Silver Top Coms for its work for the French Ministry of Employment, The Phone Book and for the city of Angers. BETC Euro RSCG was awarded a Gold Top Com and a Bronze Top Com for its campaign for insurance company MACIF. The Asia Pacific Advertising Festival bestowed gold and silver prizes upon the Euro RSCG Flagship agency in Thailand for its "Boy" campaign for Reckitt Benckiser, and two bronze awards for Spectraban 60 "Invisible" and the Soken DVD "Warrior". Euro RSCG Furnace in Australia received two silvers for the Slazenger Tennis Racquets campaign entitled "Mushroom". The Long Xi Awards saw Euro RSCG Shanghai carry off three prizes (one Gold and two Silver) for the campaigns it produced for Pfizer and Greenpeace. MPG UK received two awards ("Best Use of Outdoor" and "Overall Best Campaign") for its client Magners Cider. At the fourth edition of the Trophees Sporsora for sports marketing, French electricity provider EDF was awarded the gold trophy for the "best sports sponsorship work" involving a company and a sports organisation. This award was received for "Rencontres EDF Handisport", an event designed and organised by Havas Sports. 5. Outlook The group's main performance indicators for Q1 2007 are in line with its expectations in view of the seasonality of the business. 6. Calendar The combined Annual General Meeting of Shareholders will be held on June 11, 2007. The revenue for the first half-year 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 headquartered in New York and Havas Media in Barcelona, and through 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" 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 account gains expressed in estimated annual billings. The complete definition can be found on page 5 of this release. 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 171 860 763,60 euros - 335 480 265 RCS Nanterre - APE 744 B Contacts : Communications : Anne Marsan Tel: +33-(0)1-58-47-90-33 email@example.com Solenne Anthonioz Tel: +33-(0)1-58-47-90-27 firstname.lastname@example.org Investor Relations: Herve Philippe Directeur Financier du Groupe Havas Tel: +33-(0)1-58-47-91-23 email@example.com
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