Havas, the world’s sixth largest advertising group, has reported that revenues fell by 11% during 2002 as austerity measures continued to bite.
The company managed to attract more than a €1.6 billion of new business last year but the worsening state of the European market contributed to negative organic growth of 5.8%. Overall revenues were down to €1.99 billion from €2.24 billion in 2001.
There are signs of recovery in the US where like-for-like revenues slipped by just 1.5% in the fourth quarter. However, the weakening dollar took its toll and resulted in an income loss of more than €50 million at Havas in 2002.
On the positive side, the group remains committed to its aim of improving EBIT margin by one percentage point to 11.4% and expects to reveal a reduction in debt when it releases its full 2002 results next month.
Alain de Pouzilhac, Chairman and CEO of Havas, admitted that 2002 had been a “challenging year” but expressed confidence that the company was moving in the right direction.
“The consolidation efforts undertaken in 2002 formed a foundation that is essential for positive growth in 2003, particularly as the global business environment remains difficult and surrounded by a great deal of uncertainty,” he said in a statement.
