Havas media group has reported a strong performance in 2004, with organic growth increasing by 2% for the full year, fuelled by the company’s strong performance in quarter four of 2004.
The board of directors met yesterday to approve the 2004 financial statement, confirming predictions that its operating margin would be higher in the second half of 2004 than the first (see
Strong Q4 Boosts Havas 2004 Revenue). Havas disclosed an operating margin increase of 14.2% for the later part of the year compared to 8.4% for the same period in 2003.
Full year operating margin was 13.2%, compared to 8.3% in 2003, an increase of 490 basis points. Elsewhere Havas announced net income before goodwill of €92 million, against a loss of €179 million in 2003.
The report revealed a strong improvement in profitability for the group, with an operating income of €197 million, an increase of 45%. Havas argues that this impressive growth demonstrates the validity and effectiveness of the strategic reorganisation undertaken at the end of 2003.
The improvement in operating margin is attributed to strict ongoing cost control and the accelerations of organic growth throughout 2004. New businesses were reported to be up 59% in estimated annual net revenue, with major accounts for prestigious brands won throughout the year.
Havas reported a considerable reduction in debt, with net debt at December 31 down from €642 million to €226 million, putting them in a good position for substantial growth.
Commenting on the results, Alain de Pouzilhac, chairman and chief executive officer of Havas said: “The 2004 results demonstrate the perfect execution of the strategic reorganisation started in fall 2003. These results are spectacular. They highlight the enormous effort made by the Havas teams all around the world and the strength and talent of our people in servicing their existing clients and winning new ones.”
He continued: “The results also illustrate the effectiveness of our strategy and our business model. The return to high levels of competitiveness has revived our pride and winning spirit and our potential for development is great.”
Havas enters 2005 confidently, aiming to continue the positive development of its organic growth and to further profitability through more cost reduction.
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