Havas: Organic Growth of +5.8% for the First 9 Months of 2008
Revenue for the First 9 Months of 2008: EUR1,118 Million
Continued Strong Progress in Net New Business(1): EUR1,446 Million for the First 9 Months of 2008
For Full Year 2008, We Maintain Our Operating Margin Target of Between 11% and 12%
The level of revenue over the period remained strong, with organic growth of +5.8%.
Revenue for the first 9 months of 2008 was
A stronger euro had a negative exchange rate impact of
Organic growth in Q3 is explained by the following factors: - A particularly high basis for comparison (Q3 2007 organic growth: +9.3%) - The loss of the Dell account in Asia which reduced the Group's Q3 growth by 0.6 points - A drop in investment in North America specifically in the tourism, finance and health sectors.
The Group is maintaining its target 2008 operating margin of between 11% and 12%.
2. Detailed comments by region Revenue (in EURM) Q3 Q3 9M 9M Q3 Q3 9M 9M Organic Growth (%) 2008 2007 2008 2007* 2008 2007 2008 2007* EUROPE 209 200 657 612 EUROPE 2.7% 8.7% 6.3% 6.0% NORTH NORTH -1.5% 9.1% 3.7% 4.0% AMERICA 112 128 346 379 AMERICA REST OF REST OF THE WORLD 41 40 114 106 THE WORLD 4.3% 14.0% 9.4% 13.7% of which of which Asia Pacific 15 19 51 49 Asia Latin Pacific-14.1% 18.9% 6.2% 13.1% America 26 21 63 57 Latin America 19.4% 10.0% 12.1% 14.2% TOTAL 362 368 1,118 1,097 TOTAL 1.5% 9.3% 5.8% 6.0% * at 2008 scope and exchange rates - 9 MONTHS 2008
With organic growth of 5.8% over the first 9 months of the year, our performance continues to be one of the best on the market.
All regions are enjoying growth.
- 3rd QUARTER 2008
Despite the worsening economic climate in
Q3 growth in
REST OF WORLD
As already mentioned,
3. Net New Business
Net new business remained highly dynamic in Q3. Over the first 9 months
of the year, our net new business totaled
Below are the main account wins by division:
For the full list of wins, please visit the Havas website to view the release: http://www.havas.com
4. Creativity in Q3
Loerie Awards: Euro RSCG South Africa was awarded a Silver and a Bronze in the print advertising category for its client Reckitt Benckiser.
Euro RSCG Digital Buenos Aires was named most innovative agency in
MPG International won the Media & Marketing Europe award for best campaign in the Financial Services and Consulting sectors for Barclays Global Investors.
Several agencies were awarded at the Web Awards: Euro RSCG 4D
Shark Awards: BETC Euro RSCG took Silver for NBC Universal/SciFi and Silver and Bronze for 13e Rue.
Premio Amauta: Media Contacts Argentina carried off four awards, including two Silvers for Coca-Cola and Repsol YPF plus two Bronze awards.
Havas (Euronext Paris: HAV.PA) is a global advertising and communications
services group. Headquartered in
Further information about Havas is available on the company's website: http://www.havas.com
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
(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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