Havas Advertising Group has announced estimated revenues for the first nine months of fiscal year 2001 of E1.6 billion, an increase of 43.1% as compared to the same period in 2000.
Billings amount to E10.3 billion, representing the same percentage increase as that of the revenue. When adjusted to account for the effects of currency, this increase was 42.4%.
| Growth By Region (9 months 2001 vs 9 months 2000) |
| |
Revenue (million euro) |
Unadjusted |
Adjusted |
| Europe |
777 |
+Â 20.6Â % |
+Â 4.8 Â % |
| North America |
648 |
+Â 94.8Â % |
+Â 0.3Â % |
| Asia Pacific |
54 |
+Â 0.6Â % |
+Â 1.4Â % |
| Latin America |
71 |
+Â 22.1Â % |
+Â 5.5Â % |
| TOTAL |
1,550 |
+Â 42.4Â % |
+Â 2.9Â % |
New business wins for the first nine months of 2001 amounted to E2.45 billion. During the third quarter, as the global market continued to decline, Havas enjoyed organic growth of 2.9% – outperforming the market.
| Growth By Sector (9 months 2001 vs 9 months 2000) |
| |
Revenue (million euro) |
Unadjusted |
Adjusted |
| Traditional Advertising |
630 |
+Â 26.0Â % |
-Â 1.1Â % |
| Media & Marketing Services |
920 |
+Â 56.3Â % |
+Â 6.0Â % |
| TOTAL |
1Â 550 |
+Â 42.4Â % |
+Â 2.9Â % |
In order to improve the company’s position in a market showing no signs of an upturn, Havas is embarking on a strategic reorganisation in order to develop specialised agencies in profitable sectors.
Commenting on the reorganisation, Alain de Pouzilhac, chairman and CEO of Havas Advertising, said: “The aim of the reorganisation is to enable our Group to better resist the recession. This recession is likely to continue through 2002 and it could be the first time for fifty years in the history of worldwide advertising that the progression is negative for two consecutive years. Consequently, we intend to refocus and strengthen our business around our major brands – Euro RSCG Worldwide, Arnold Worldwide Partners and MPG to create, while concentrating on our clients, greater synergies and cross fertilisation.
“This will in turn enable us to re-ignite our organic growth and profitability. This reorganisation, which should not entail any significant restructuring costs, is merely accelerating the Group’s strategic advance towards integrated communications and the development of media expertise, which are the two key expectations of our customers. It has been fairly simple to put into place because the agencies have come together through a sense of affinity, culture, and a common strategic vision, as well as real will to develop their growth potential.”
