Paris based advertising group, Havas has released a positive trading update for 2004, revealing that the company has increased organic revenue growth by 2% to €1,494 million, thanks to a positive quarter four which saw revenue increase by 4.6%, compared to the same period in 2003 (see Havas Organic Revenue Spurred On By Europe).
All regions reported positive organic growth in Q4, with the UK ending 2004 on a high note, bringing the region almost back up to breakeven for the year and confirming the effectiveness of the new teams put in place.
France enjoyed a strong performance throughout 2004, with a number of major accounts won in the second half of the year, resulting in Q4 performing better than Q3. Overall organic growth for the rest of Europe saw a 4.1% rise, with growth in Q4 remaining in line with forecasts, up 1%. In both Latin American and Asia Pacific, organic growth remained very strong.
Havas predicts that its operating margin for 2004 should be higher than the first half of the year, due to the rapid acceleration in organic growth reported in the second half of 2004.
Commenting on the results, Alain de Pouzilhac chief executive officer of Havas said: “This doubling in the rate of organic growth in our 4th quarter revenue underlines even more positively the turnaround achieved by Havas since the start of 2004. It is the direct result of the decisions and actions taken as part of the strategic reorganisation launched at the end of 2003.”
He continued: “Our results to be presented in early March will show, moreover, that all the targets management had set itself over the year have been achieved and even exceeded. This is the clearest possible demonstration that our strategy is the right one and bearing fruit.”
Last September Havas lost out to Sir Martin Sorrell’s WPP on the much contested bid for Grey Global Group, WPP won with a bid of £845 million (see WPP Wins Battle For Grey With £845 Million Bid).
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