French advertising group, Havas, has posted a 24.9% increase in revenues and net new billings worth E2.1 billion for the year ended December 2001.
The final quarter of the year saw the group – the world’s fifth largest advertising network – pick up E600 million of new business, up from E400 million in Q3. New billings accounted for 14.1% of 2001’s total billings, down from 24.3% in 2000; this suggests that Havas’ 2002 performance is likely to be lower than 2001’s, according to analysts at ABN Amro.
Regional performance Europe showed organic growth of -3.4% in Q4, down from 4.8% in the preceding nine months. The tough conditions in the US saw revenues down 5.2% in Q4, down from a positive growth of 0.3% for the first three quarters of the year.
Outlook Chairman Alain de Pouzilhac reiterated that he expects the global advertising market to either remain flat or fall by around 2% in 2002 (see Havas Sees Worldwide Ad Decline Of 2% In 2002).
Comment Analysts at ABN say that advertising agencies have benefited to some degree from the fixed-fee method of business, which has insulated that them against the downturn of last year (agencies have outperformed the market by 4-7% points). In 2002, there may be a ‘time-lag’ effect where, as the fixed-fee levels are renegotiated, the downturn will catch up with the agencies.
