French advertising giant Havas posted a larger than expected net loss during 2003 as the costs of its radical restructure mounted. The company, which includes UK agency MPG in its portfolio, posted net losses of €396 million, compared to a net profit of €23 million in 2002.
Revenue for the year was down 17.2% at €1.6 billion, and the company took a €172 million writedown in restructuring costs.
The company had anticipated that it would miss its targets for the full-year, after underperfoming in the third quarter (see Havas Growth Underperforms In 2003, Q4 Stronger). Analysts had anticipated a net loss of €323 million.
But Havas said that the reorganisation of the company is already having a positive effect, and it looked forward to returning to profitability in 2004.
“While the current climate is certainly more auspicious than in 2003, even if it is still not clear whether a real global recovery is on its way, Havas should, whatever the environment, reap the benefits of its new organisaion and return to a dynamic of growth while boosting its profitability significantly,” the company said in a statement.
