SOURCE: HAVAS

April 19, 2010 02:13 ET

HAVAS : Q1 2010 revenue - Havas returns to growth

SURESNES, FRANCE--(Marketwire - April 19, 2010) - Q1 2010 revenue:

Havas returns to growth

-- Positive organic growth: +1.5% in Q1 2010 compared with -8.4% in Q1 2009

-- Revenue: €329 million in Q1 2010 vs €325 million in Q1 2009, i.e. +1.4%

-- Growth achieved by all regions

-- Strong Net New Business1: €574 million

1. General Comments

Revenue in Q1 2010 totaled €329 million, i.e. a gross increase of +1.4% on Q1 2009.

On a like-for-like basis, organic growth was positive at +1.5% in Q1 2010, compared with the -8.4% posted for Q1 2009.

Net new business remained strong in the first quarter, totaling €574 million.

The Group's key performance indicators are in line with expectations for Q1 2010.

2. Revenue and organic growth by region:

See table in the press release

Europe

France returned to positive organic growth of +0.5% in Q1 2010 compared with -6.1% in the first quarter of 2009. This was largely driven by its media activities.

Contrasting levels of performance in the United Kingdom produced slightly negative growth overall (-1.5%). Advertising progressed very well. Media activities remained stable.

The situation improved in the Rest of Europe, but remained difficult in Spain and in certain eastern European countries.

North America

With growth of +5.2% in Q1 2010, there was a significant turnaround in this region which had posted negative growth (-9.2%) for the corresponding period in 2009. Growth was driven by strong overall performance in all activities, and especially by the Euro RSCG network most notably in advertising, healthcare and corporate communications.

Latin America

Latin America continued to post strong organic growth (+24.4% in Q1 2010) thanks to the excellent performance of media activities throughout the region and especially advertising in Brazil.

Asia Pacific

Q1 2010 saw the return of positive organic growth (+4.4%), driven largely by the good results achieved in the media and marketing businesses in China, India and Singapore.

3. New Business Net1

We continued the dynamic trend of new accounts awarded in Q1 2010 with net new business1 totaling €574 million.

The following were among the most significant accounts won in the first quarter of 2010:

Credit Suisse, who awarded us their global recruitment advertising account (Euro RSCG), Heineken's digital business in North America (Euro RSCG), Comet (Euro RSCG London), one of the biggest electronics retailers in the UK, Lidl (Young Euro RSCG) in Ireland, Nike (Leg) in France, Bupa (Euro RSCG) in Saudi Arabia, Panasonic, Mike's Hard Lemonade and Huntington Bank in the USA (Arnold).

NBC Universal Theme Parks and the Turkish and Austrian Tourist Boards awarded us their accounts for Europe (MPG International), the Red Driving School in the UK (Arena BLM UK), Merck, Casas GEO and SCA in Mexico (Arena Mexico), 3Suisses in France (Havas Media France), PureCircle and Huntington in the USA (MPG USA).

In the field of social networks, Euro RSCG has been appointed reference agency for Havaianas in the USA.

4. Major awards

During the first quarter of the year, Group agencies received awards at numerous international advertising festivals. The main awards were the following:

Medical Marketing & Media and Adweek magazines both named Euro RSCG Life the healthcare network of the year.

CB News ranked BETC Euro RSCG Creative Agency of the Year for the twelfth time in sixteen years.

At the Mobius international festival, BETC Euro RSCG received three Best of Show awards: in TV for "The Closet" (Canal+), in the print category for "Les Mois" (Petit Bateau) and in digital for "Rollerbabies" (Evian). Two other Havas agencies took Best of Show awards, Arnold Boston in the Outdoor category for Carnival Cruises (also awarded a Mobius) and Euro RSCG 4D Düsseldorf in Direct with "Transparent Man" for fiftyfifty magazine (the agency also received four Mobius awards for the same campaign). BETC Euro RSCG also took the Best Photo Award (Petit Bateau) and a total of six Mobius awards. Euro RSCG 4D Amsterdam won a Mobius for "From Sweden with love" (Volvo) in the Media category.

At the John Caples International Awards, Euro RSCG Prague received a Gold in the Print category for "Spaghetti" (Panzani) and a Silver in TV for "Munich" (National Museum). Euro RSCG Sydney won a Silver in Collateral media for "Wind Power" (Integral Energy).

At the 25th International Automobile Festival, H received a Grand Prix for "Shopping", the Citroën C3 campaign.

At the Internet Advertising Competition Awards, Euro RSCG 4D Amsterdam took three awards, two for Volvo and one for RaboBank.

Ads of the World granted a Gold in the Print category to Euro RSCG Milan for "Calendar" (Legambiente).

ER 4D Düsseldorf won the Best Ad/Best Idea category with "Transparent Man" (fiftyfifty magazine) at The Cup festival where the winners from AdFest (Asia), Fiap (Latin America), ADC Europe and Golden Drum were all competing.

At the Internationalist Awards for Media Innovation, the MPG/Cake/AIS UK team received a Gold for the "Green Britain Day" campaign for EDF, MPG/Media Contacts took a Silver for Volvo Twitter, and MPG Italy, MPG USA and Cake UK all won bronze awards.

5. Calendar

The Annual General Meeting of shareholders will be held on May 11, 2010 at 4 p.m. at the Group's headquarters in Suresnes.

ANNEX 1 - NEW BUSINESS IN Q1 2010

See press release for more detail

This information is provided by HUGIN

Contact Information

  • Communications:

    Lorella Gessa
    Director of Communications
    Tel: +33 (0)1 58 47 90 36
    Email Contact

    Investor Relations:

    Hervé Philippe Chief Financial Officer
    Tel: +33 (0)1 58 47 91 23
    Email Contact

    Elsa Cardarelli
    Director of Investor Relations
    Tel: +33 (0)1 58 47 90 58
    Email Contact