October 18, 2010 12:17 ET


SURESNES, FRANCE--(Marketwire - October 18, 2010) - PRESS RELEASE

Accelerated growth

-- Revenue up to €1,097 million for the first nine months of 2010:

- Real growth: +12.6% in Q3 2010, after +6.6% in Q2 and +1.4% in Q1.

Totaling +6.9% over the first nine months of the year 2010.

- Organic growth: +5.3% in Q3 2010, after +2.0% in Q2 and +1.5% in Q1.

Totaling +2.9% over the first nine months of the year.

-- Net new business1 remains strong: €1.6 billion for the first nine months of the year, compared with €1.1 billion for the same period in 2009 (+42%).

1. Key figures

see table in press release

2. General comments

-- Group revenue for the first nine months of 2010 was €1,097 million. Unadjusted revenue for Q3 2010 was up by +12.6% over third quarter 2009, and by +6.9% for the first 9 months of the year compared with same period in 2009. A weaker euro resulted in a positive exchange rate impact of €34 million over the first 9 months of 2010.

-- Group organic growth (excluding variations in exchange rates and scope of consolidation) was +5.3% in Q3 2010 and +2.9% over the first 9 months of 2010.

see table in press release

Highlights by region:


After a first half negatively impacted by the loss of the Carrefour account, France recovered strongly with organic growth of +5.2% in Q3, fuelled by strong performances from all businesses.

The United Kingdom ramped up performance in Q3 with organic growth of +7.5% driven by the media, advertising, digital and healthcare communication businesses.

The rest of Europe continued to suffer a slowdown in growth, primarily in Southern Europe.

North America: As expected, the region benefited from conversion of all the New Business garnered in previous quarters and from strong performances by the advertising business (Euro RSCG New York and Arnold in particular), by PR and by healthcare communication as well as media.

Rest of world:

Q3 2010 saw a return to positive growth in Asia Pacific of +7.8% thanks to good results from China and India.

Latin America reported double-digit growth of +38%, fuelled by excellent performances from all our businesses across the region and from Brazil in particular.

3. Net New Business1

The Group's commercial momentum continued unabated with Net new business1 of €408 million in Q3 2010. At €1.6 billion, Net new business net1 for the first 9 months of 2010 was up by 42% over the same period last year and is already above the full-year total for 2009. In the latest Nomura report*, Havas once again takes top ranking for net new business as a proportion of revenue for the first 9 months of 2010.

Some of the most significant new accounts won in Q3 2010 include:

Havas Worldwide

- Australian Wool Innovation global business (led by Euro RSCG London and Euro RSCG Sydney)

- Granini (Euro RSCG Düsseldorf) and Playtex (Leg) pan-European business

- Ricard in France (BETC Euro RSCG)

- Pizza Hut in Brazil (Euro RSCG Sao Paulo)

- Sanquan in China (Euro RSCG Shanghai)

- Tunisie Telecom (Havas Tunisie)

- Certified Financial Planner (Arnold Washington)

Digital strategic wins included:

Pan-APAC duties for AMD (Euro RSCG Singapore), the Barclays DM and CRM business in the UK (EHS 4D), Heinz, Panasonic and Peugeot (Euro RSCG Poland) in Poland, Ambev (Euro RSCG 4D Colombia) in the Dominican Republic and Master Kong Biscuits, HP Printing and Imaging and China's lead Cartoon Network KAKU (Euro RSCG Beijing and Euro RSCG Shanghai) in China.

Havas Media

Australian Wool Innovation global business (MPG International)

EDF in France (MPG)

Chiquita in Belgium and Germany (MPG)

Numico (Danone) in the Netherlands (MPG Holland)

Citrix and Sisley in Germany (MPG Germany)

Che Banca in Italy (MPG Italy)

HP in United Kingdom (Arena Media UK)

Liberty Seguros and Gallina Blanca in Spain (Arena Media Spain)

Chivas Regal (Arena Media Colombia), Pirelli (MPG Argentina and Media Contacts Brazil), LIVERPOOL, GNP and Lilly (MPG Mexico) in Latin America

Kia in China (MPG China)

Digital strategic wins included:

IG Group in 10 European markets (MPG and Media Contacts), Yahoo! in Brazil (Media Contacts Brazil), INQ Mobile in India (Media Contacts India), Smart Technologies in Canada (Media Contacts Canada), Tesco Bank in the UK (Arena Quantum) and Turkey Tourist Board (Media Contacts Germany).

These wins join the list of new business won during the first half of 2010, including: Crédit Suisse, Décathlon, Comet, Panasonic, Alberto Culver, Huntington Bank, New Balance, Roche, Novartis, Nike, Bupa, Heineken, Havaianas, Unilever, Turespaña, Brother, Lala, Merck, Kia, 3Suisses, Crédit Agricole, ...

*Nomura research report dated October 12, 2010.

(See Annex 1 for the list of main new accounts won).

ANNEX 1: New Business in Q3 2010

see annex in press release

ANNEX 2: major awards in Q3 2010

The third quarter of 2010 saw many of the Group's agencies awarded:

Euro RSCG Worldwide was named BtoB Magazine's Direct Agency of the Year 2010.

At the Sharks International Awards, BETC Euro RSCG took two Gold awards for the film "Le Placard" (The Closet) for Canal+ and a third Gold for "Routine" for the Association Contre la Violence. The agency also added three Silver and two Bronze awards to its haul. Arnold Boston won silver for its campaign for Truth. The pairing of H - Euro RSCG Milan took Bronze for its film "Le Chien" (The Dog) for Citroën and Euro RSCG 4D Amsterdam carried off two Bronze awards for Volvo. Euro RSCG Young won two Bronze awards for Bulmers and Euro RSCG London a Bronze for Dulux.

At the ADC*E, BETC Euro RSCG won Gold three times, for Canal+, 13ème Rue and Evian. Euro RSCG Zurich also struck Gold for DU Magazine.

At the Communiqué Awards, Euro RSCG Life Mediacom won three awards in three different categories for European Alliance, BMS and Innovex & NHS Doncaster.

Leg was awarded the Grand Prix for its outdoor campaign for Eurostar at the Grand Prix de la Communication Extérieure. Euro RSCG New York was another Grand Prix winner at the Radio Mercury Awards for Heineken/Dos Equis in the Radio category.

At the Stevies International Business Awards, Project House Euro RSCG (Turkey) walked away with three "Stevies" for Coca-Cola, Kraft Foods-Jacob and Efes Pilsener.

At the Moscow International Advertising Festival, Euro RSCG Spain won three Gold awards for Reckitt Benckiser in Outdoor.

At the Effie Awards Argentina, Euro RSCG Buenos Aires won a Silver award for BBVA/Banco Frances GO.

At the Interactive Media Awards, Euro RSCG New York was awarded twice for Volvo and once for Lacoste, while Euro RSCG Tonic was awarded for GlaxoSmithKline.

A number of Group agencies made their mark on the WebAwards: Euro RSCG Life 4D USA (two awards), BETC Euro RSCG (one award), Euro RSCG 4D Amsterdam (two awards) and Arnold Boston (a grand total of five awards).

In media, Media Contacts Philippines carried off a Silver and a Bronze award at the Boomerang Awards. Havas Sports & Entertainment won Silver at the Effie Awards Mexico. Arena Media UK was awarded at the Travolution Awards, and so was Cake at the SeventySeven PR. At the Boston Ad Club's Media Innovation Awards, Media Contacts US, MPG US and Mobext all took home an award.

About Havas

Havas (Euronext Paris: HAV.PA) is a global advertising and communications services group. Headquartered in Paris, Havas operates through its two Business Units (the term " Business Unit " will from now on replace the term " Division "), Havas Worldwide and Havas Media, in order to optimize synergies and further reinforce Havas's position as the most integrated of all of the major holding companies. Havas Worldwide incorporates the Euro RSCG Worldwide network as well as agencies with strong local identities: Arnold in the USA, the UK and Italy, H and W&Cie in France... Havas Media incorporates the MPG, Arena, Havas Sports & Entertainment and Havas Digital networks. A multicultural and decentralized Group, Havas is present in more than 75 countries through its networks of agencies and contractual affiliations. The Group offers a broad range of communications services, including traditional advertising, direct marketing, media planning and buying, corporate communications, sales promotion, design, human resources, sports marketing, multimedia interactive communications and public relations. Havas employs approximately 14,000 people.

Further information about Havas is available on the company's website:

Forward-Looking Information

This document contains certain forward-looking statements which speak only as of the date on which they are made. Forward looking statements relate to projections, anticipated events or trends, future plans and strategies, and reflect Havas' current views about future events. They are therefore subject to inherent risks and uncertainties that may cause Havas' actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from expected results include changes in the global economic environment or in the business environment, and in factors such as competition and market regulation. For more information regarding risk factors relevant to Havas, please see Havas' filings with the Autorité des Marchés Financiers (documents in French) and, up to October 2006, with the U.S. Securities and Exchange Commission (documents in English only). Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise.

(1): Net New Business

Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies.

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Contact Information

  • Contacts:
    Lorella Gessa
    Communications Director, Havas Group
    Tel: +33 (0)1 58 47 90 36
    Email Contact

    Investor Relations:
    Herve Philippe
    Chief Financial Officer, Havas Group
    Directeur General Delegue
    Tel: +33 (0)1 58 47 91 23
    Email Contact

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

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    Tel +33 (0) 1 58 47 90 00
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