Havas Back In The Black With Impressive Profits
Profits at advertising group, Havas, have experienced an impressive turnaround over the last twelve months, rising to €14 million during the first half of this year, compared to a net loss of €58 million for the same period last year.
Havas, which lost out on a bid for Grey Global this week to rivals WPP, also saw organic growth from January to June 2004 returning to the black, rising from -6.8% to 0.6% year-on-year.
The group’s turnaround is thanks to a restructuring plan which started last September, with all operating regions showing solid growth except for the USA, which is still suffering from the loss of business in 2003 and early 2004. The UK, which has previously been a burden for the group, also turned positive in the second quarter, growing to 2.3%.
The marked improvement will come as good news to chief executive, Alain de Pouzilhac, but many will be waiting to see if this is enough to persuade shareholders he is the right man for the job. Reports suggest that he is facing calls to step down from his current position as a result of the bidding war outcome.
Commenting on the results, de Pouzilhac said: “This very strong improvement in Havas’ results has demonstrated that we have been able to achieve both the restructuring plan and the strategic reorganisation announced a year ago, within the time frame that we had set ourselves. It also shows, in drawing closer to the figures of certain of our competitors, that Havas is on the right track in terms of both operating and financial performance.”
Havas www.havas.com
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