Havas: Strong Growth in H1 2007 Results

    SURESNES, France, September 26 /PRNewswire-FirstCall/ -- - Marked
 upturn in profitability in first half 2007 compared to first half 2006:
     - operating income +34.4%
     - net income (Group share) +70.6%
     - First half 2007 earnings per share up +60.0% compared to first half
 2006
     - A stronger financial structure founded on a significant reduction in
 net debt at June 30, 2007 to EUR430 million compared to EUR648 million at
 June 30, 2006
     Fernando Rodes Vila, CEO of Havas, stated: "These satisfactory
 first-half 2007 results for Havas are in line with expectations. Continuing
 our focus on winning new business, rationalization and cost control is the
 key to the Group's long-term, profitable growth."
     1. 2007 interim results and financial position at June 30, 2007
     The Board of Directors, at its meeting of September 26, approved the
 interim results for the period ended June 30, 2007.
     - At EUR729 million in first half 2007, Group revenue was up +1.3% in
 gross terms compared to the first half of 2006, due primarily to the
 strategy of reinforcing talents and New Business teams introduced in 2006,
 and despite the appreciation of the euro against the dollar which 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.
     - The Group's organic growth in the first half of 2007 improved as
 follows:
 
     1st quarter 2007     + 3.2%
     2nd quarter 2007     + 5.4%
     First half 2007      + 4.4%
     At 4.4%, organic growth in first half 2007 was at its highest level
 since the first half of 2001.
     - Income from operations, at EUR75 million, showed a significant
 increase of +16.9% over first half 2006. Margin on income from operations
 rose +1.4 points from 8.9% to 10.3%, thanks to tight cost control.
     - Operating income also stood at EUR75 million, a substantial increase
 of +34.4% compared to first half 2006. Operating margin was 10.3% in first
 half 2007 compared to 7.7% for first half 2006, an increase of +2.6 points.
     - Net income (Group share) was EUR35 million for first half 2007, a
 remarkable +70.6% increase compared to first half 2006.
     - Earnings per share for the first half of 2007 were 8 centimes (EUR)
 compared to 5 centimes (EUR) for first half 2006, an increase of +60.0%.
     - The Group's financial structure also improved significantly in H1
 2007 by comparison with the first half of 2006. Net debt at June 30, 2007
 stood at EUR430 million compared to EUR648 million at June 30, 2006.
 Average net debt[1] for the period was EUR404 million in first half 2007
 compared to EUR517 million in first half 2006 and EUR527 million in the
 second half of 2006, a reduction of over 20%.
     2. Highlights of first half 2007
     The first half reaped the benefits of new account wins from the
 previous year, with the biggest contributors among these new clients being:
 Reckitt Benckiser, Sanofi-Aventis, Pfizer, Exxon Mobil, Progressive Direct,
 SFR, Banco Santander, GSK and Barclays.
     Net New Business grew strongly over the first half, by more than EUR1.2
 billion, the highest level in the last five years. Some of the key account
 wins include Sears, Volvo, Kraft Foods, Turespana, BBC and Virgin Mobile.
     All the Group's main businesses contributed to second quarter organic
 growth, in particular healthcare communication and media consulting.
 Multimedia business also continued to make progress. Performance was
 dynamic across all the regions.
     The 2007 Interim Results presentation is available on the company's
 website: http://www.havas.com
     APPENDIX: FINANCIAL INFORMATION
     See the press release available on the Havas website:
 http://www.havas.com
     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:
 http://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.
     (1) Average net debt (quarterly or annually) is calculated for the 4
 main countries (France, USA, UK and Spain) as the difference between
 structured gross debt (océanes, credit lines, etc.) and cash at bank
 measured on a daily basis; for the other countries, average net debt is the
 debt recognized at the end of each quarter. The closing position is a net
 book debt position.
     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
     Chief Financial Officer
     Tel: +33-(0)-1-58-47-91-23
     relations.actionnaires@havas.com
 
 

SOURCE Havas