French advertising and marketing giant Havas has confirmed that it is to undergo major reorganisation as it seeks to boost revenues in “challenging” market conditions.
Havas, the world’s sixth-largest advertising group, said today that revenues had fallen by 19% to €836 million in the first half. This was attributed mainly to the recent rise in the value of the euro against both the dollar and the pound.
However, uncertainty continues to weigh heavily on the global market with the after-effects of the Iraq war, downward economic indicators and the Sars virus all seen as contributory factors.
Signs of an upturn in the US have been overshadowed by “a strong deterioration” in European markets, particularly the UK, and no recovery is expected before late-2004.
The proposed restructuring will see Havas’ global clients represented by the Euro RSCG agency (see Havas To Consolidate Global Operations). Arnold Worldwide will offer creative solutions in key markets while MPG will focus on traditional media, marketing services and data-driven interactivity.
Alain de Pouzilhac, chairman and CEO of Havas, commented: “We want Havas to be a new leader in our market throughout the world by proposing the most innovative communication solutions. This must be reflected in our organisation, which must be simplified, rationalised and avoid any duplication.”
