Paris based advertising group, Havas, has continued its turnaround which began in the first quarter of 2004, both in terms of organic growth and Net New Business, revealing a growth of 1.4% in the first quarter of 2005, double what it achieved in the same period of 2004.
Havas attributed this strong increase to the performance of three regions, showing that North America had enjoyed organic growth of 1.8%, with Latin America once again achieving an outstanding increase of 19.7%. France and the rest of Europe outperformed the market, rising by 2.2% and 2.1% respectively.
The UK was shown to be down by 3.3%, primarily as a result of the postponement of government advertising expenditure due to the national elections. However, Havas, says that this negative growth does not alter its predictions of positive growth for the remainder of the year (see UK Television Platform Penetration Forecasts).
The group’s first quarter revenue totalled €330 million, down 7.5% on an unadjusted basis compared to Q1 2004, due to the combined effects of exchange rates, notably the 4.5% decline in the dollar.
Commenting on the results, Alain de Poulzihac, Havas chairman and chief executive officer said: “The first quarter has reinforced our confidence in achieving our objectives for 2005. The additional New Business gains at the start of the second quarter, including among others the RadioShack account won by Arnold, suggest that our organic growth should be higher in 2005 than it was in 2004.”
Poulzihac continued: “We are also confirming our objective of improving the operating margin through the gradual build-up of new accounts, the development of existing clients and our continued cost reduction efforts. Havas’s turnaround is substantial, and should be further amplified in the second half of the year.”
Havas’s new business rose by 45% in the first quarter of 2005 compared to the same period in 2004, with Net New business performing positively, showing more wins than offsetting losses.
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