SURESNES, France, May 11 /PRNewswire-FirstCall/ -- 1. Overview
Havas (NASDAQ: HAVS) has achieved +3.2% organic growth on a like for
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
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
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.
The group's main performance indicators for Q1 2007 are in line with
its expectations in view of the seasonality of the business.
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
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:
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.
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Communications : Anne Marsan
Investor Relations: Herve Philippe
Directeur Financier du Groupe Havas