PUTEAUX CEDEX, FRANCE--(Marketwired - May 2, 2013) -
* Q1 2013 revenue flat: EUR386 million versus EUR387 million in Q1 2012(-0.3% net growth and -0.9% organic growth)
* Net New Business(1 )firm: EUR402 million
David Jones, Global CEO Havas, said: "The Group held up well against thesharpdownturn in the European market overall in the first quarter of 2013,achievingpositive performances in the key markets of France and the UK. Business inNorthAmerica slowed after outperforming the market in Q4 2012, but emergingmarketsremain solid. Digital, media, advertising and healthcare communication allmadesignificant contributions to Group performance."
1. KEY FIGURES
See the attached file (PDF).
2. GENERAL COMMENTS
Consolidated Group revenue for the 1(st) quarter of 2013 was EUR386millioncompared with EUR387 million for Q1 2012, a slight decrease of -0.3% on anunadjusted basis.
Organic growth in Q1 2013 was -0.9%, set against +3.5% for the sameperiod in2012.
The euro strengthened against the US dollar and GB pound in Q1 2013 ascomparedto Q1 2012, leading to a negative impact on revenue of almost EUR4 million.The Group's key performance indicators in Q1 2013 were broadly in linewithplan.
Highlights by region:
Results in Europe were mixed, with France reporting organic growth of+1.2% inQ1 2013, despite a high 2012 baseline, driven largely by advertising,media anddigital. The UK returned to growth, with organic growth up +0.7%versus Q12012, despite budget cuts by certain clients. The Rest of Europereported anoverall decline (-2.4%) with the exception of the digital business,whichcontinues to perform well across the board. Germany and Turkeycontinue toreport good growth.
Following a very strong Q4 2012 (+6.5%), North America posted negativegrowth (-3.9%) driven by high comparisons and certain one-off account losses fromlastyear including Dell at Arnold, and Sprint and Exxon at HavasWorldwide.Healthcare communications continued to outperform and deliver stronggrowthdespite significant declines in Pfizer, as did media. We expect theimpact ofthe one-off losses to tail off in Q2 2013.
Rest of world:
Latin America once again reported good growth thanks to the digital andmediabusinesses, and to strong growth in Mexico.
Growth continued in Asia-Pacific despite the loss of a significantaccount inAustralia and the slow down of the corporate communications business inHongKong.
Healthcare communications and advertising made positive contributions.
3. NET NEW BUSINESS(1)
The Group delivered strong new account wins in Q1 2013, with net newbusiness(1)of EUR402 million.
Significant wins in Q1 2013 include:
Havas Creative Group:
Bacardi - Camp + King & BETC London
Carrefour - Havas Worldwide Paris
Citroen - Havas Worldwide Shanghai
Del Monte - Havas Worldwide Delhi
Del Monte Milkbone - Arnold New York
DMK - Global PR win, led out of Germany
Ideal Standard - Havas PR UK for pan-European brief
IPSEN - Havas Worldwide Paris
La Poste - BETC & Havas Worldwide Paris
Mothercare - Havas Worldwide London
Ubisoft - BETC Paris
United Nations - Havas PR
Volvo - Havas Worldwide Munich & Dusseldorf
Volvo Australia - Arnold Furnace
Havas Media Group:
Agrolimen - Arena Spain
Artiach - Havas Media Barcelona
TV Azteca - Arena Colombia
Banque PSA Finance (Distingo savings account) - Havas Media France
Bakrie Telecom - Havas Media Indonesia
Burger King - Arena Argentina
Burn - Havas Sports & Entertainment US, ignition, HS&E UK, HS&E Spain
Crédit Agricole - Arena Poland
General Mills - Havas Media France
H&R Block - Havas Media Canada
Ifema - Havas Media Spain (Madrid)
Lembaga Penjamin Simpanan - Havas Media Indonesia
Leroy Merlin - Proximia Spain
Mazuma Mobile - Havas Media UK
Mutua Madrileña - Havas Media Spain (Madrid)
Reckitt Benckiser - in several markets
Saint Maclou - Havas Media France
Santa Lucia Seguros - Arena Spain (Madrid)
Tourism of Turkey - Havas Media Germany, plus the UK, Sweden, Norway and
Vivil - Havas Media Germany
Yahoo! - ignition US, HS&E France, UK, Spain, Italy, Germany
Digital wins included:
Ale Combustiveis - Media Contacts Brazil
LaCentrale.fr - Havas Media France
Leboncoin.fr - Havas Media Regions France
LVMH - Havas Media US
Pizza Hut - Havas Worldwide Hong Kong
Roquefort - Havas 360
Simple - Havas EHS
Snuggle - Havas 360
SCA - Havas Worldwide Digital Athens
Unilever (Rexona Women) - Havas Worldwide Digital Warsaw
The first quarter of the year has been one of rapid expansion in Havas'spool oftalent, with the announcement of several major new hires at HavasWorldwide,Havas Media and Arnold. Starting in January, former Arnold Worldwide CEOAndrewBenett was named to the new post of Havas Worldwide Global President,reportingto David Jones, who remains Global CEO of the Havas Worldwide network.RobertLePlae, formerly Global President at Arnold, steps in to Benett's CEO rolethere.
Matt Weiss joined the network as Global Chief Marketing Officer, and MattHowellstepped into the additional role of Chief Digital Officer for HavasCreativeGroup, expanding his responsibilities to both the Arnold and the HavasWorldwidenetworks.
Havas Worldwide recruited Vin Farrell from R/GA to fill the new role ofGlobalChief Content Officer, and Sean Lyons, also formerly of R/GA, as GlobalChiefDigital Officer. And in Chicago, Laura Maness was tapped to head newbusinessdevelopment and agency growth as U.S. Chief Growth Officer.
Brendan Tansey, digital pioneer and former CEO of Wunderman UK, was namedCEO ofSocialistic China, part of Havas Worldwide Digital. This new startup waslaunched at the beginning of April and will specialize in digital work inGreater China.
Following the simplification of its global network and the success of itsglobal rebranding at the beginning of the year, Havas Media Group also madeseveral senior management announcements: Dominque Delport was appointedGlobalManaging Director, and Raphaël De Andreis joined Havas Media France asCEO.
5. AWARDS & RECOGNITIONS
The Gunn Report, published in January, named "The Bear" for Canal+ theworld'smost awarded TV spot, not just in 2012 but in the entire history of theGunnreport.
The Mobius International Festival awarded BETC a Best of Show forCanal+(Borgia) plus a further three Mobius awards for Canal+ in theOnline andTelevision (Entertainment Media Promotion and Direction) categories, aswell asa Mobius in New Media for MCM Pizzas.
At the Andy Awards, Arnold Boston was awarded Bronze in the DirectResponsecategory for Al Gore's "Reality Drop" for Climate Reality.
Havas Worldwide Amsterdam was recognized in the Social Media categoryfor its"Tweetphony" campaign for the Metropole Orchestra at the IAC Awards.
In the Asia-Pacific region, Havas Worldwide Sydney won a Gold for VirginMobile"Fair Go Bro" and an award in the Integrated category in addition to aSilver inInteractive for Sony NEX "DSLR Gear No Idea" at the Adfest and Host tookSilverfor Air New Zealand. At the A.W.A.R.D, Havas Worldwide Australia,Host, OneGreen Bean and Havas Worldwide Singapore scooped a total of tenawards,including seven Silver and three Bronze.
At the Dubai Lynx, Havas Worldwide Dubai netted Gold in Promotion forReckittBenckiser/Dettol. Havas Digital Middle-East took four Bronze awardsat theCristal MENA awards for Reckitt Benckiser/Durex.
Havas Sports & Entertainment UK was awarded for Lloyds at theEuropeanSponsorship Association Excellence Awards.
In France, BETC topped CB News magazine's Hits d'Or creative league table;HavasWorldwide Paris, BETC and W&Cie were awarded a Grand Prix, a SpecialPrize,three Gold and a Silver at the Top Com Corporate Business awards; theClub desDA presented a total of 15 awards to Leg, BETC, Havas Worldwide Paris andH; atthe Grand Prix Stratégies du Marketing Digital, BETC walked awaywith a GrandPrix for Evian, two more awards for Evian and Air France and aDistinction forPeugeot, while Leg achieved a Distinction for SFR.
Havas Worldwide London took two Bronze awards at the British Arrows; AISLondontook Best Integrated Company for Sony Music at the IAB Creative ShowcaseGrandPrix awards; Havas Engage won a Silver and a Gold at the Mixx Awards inTurkey;Havas Worldwide Prague won a Silver and four Bronze awards at theLouskacek;Havas Worldwide Zurich won two Bronze awards at the ADC Switzerland.
Cake New York won a Silver SABRE award in the "TV Format Creation andLicensing"category for Glacéau Vitaminwater and Cake UK won the top award in the"BestWidget/Mobile Application" category for its Mobile Memories campaign forCarphone Warehouse.
In the United States, Havas PR North America took a Gold and a Bronzeat theBulldog Digital/Social PR Awards and a further two prizes at the CSR Awardsplusa place on the "CSR A-List" for the second year running. At the GoldenHedgehogPR Awards, Havas PR UK carried off the Grand Prix and a Campaign of theYearaward for Asda.
In Asia, the Youth Marketing Forum/Social Media Summit & Awards namedHavasWorldwide Digital Matrix India as Social Media Agency of the Year; HavasMediaChina took two prizes at the Adworld Awards and another at the RTV ChinaAwards.
One Green Bean named PR Agency of the Year by Ad News (Australia) andHavasGurisa (Uruguay) named Agency of the Year by Desachate.
The Annual Shareholders' Meeting will be held on June 5(th), 2013 at 9a.m., atthe Havas headquarters in Puteaux.
Havas (Euronext Paris SA: HAV.PA) is one of the world's largest globaladvertising, digital and communications groups. Headquartered in Paris,Havasoperates through its two Business Units: Havas Creative Group and HavasMediaGroup.
Havas Creative Group incorporates the Havas Worldwide(www.havasworldwide.com)network - formerly Euro RSCG Worldwide - (316 offices in 75 countries), theArnold (www.arn.com) micro-network (16 agencies in 15 countries on 5continents)as well as several other strong agencies.
Havas Media Group (www.havasmedia.com), is the world's fastest growingmediagroup, operating in over 100 countries, and incorporates two majorcommercialbrands: Havas Media (ex MPG) and Arena.
A multicultural and decentralized Group, Havas is present in more than 100countries through its networks of agencies and contractual affiliations.TheGroup offers a broad range of communications services, including digital,advertising, direct marketing, media planning and buying, corporatecommunications, sales promotion, design, human resources, sports marketing,multimedia interactive communications and public relations. Havas employsapproximately 15,000 people. Further information about Havas is availableon thecompany's website: www.havas.com
This document contains certain forward-looking statements which speak onlyas ofthe date on which they are made. Forward looking statementsrelate toprojections, anticipated events or trends, future plans andstrategies, andreflect Havas' current views about future events. They are thereforesubject toinherent risks and uncertainties that may cause Havas' actual results todiffermaterially from those expressed in any forward-looking statement. Factorsthatcould cause actual results to differ materially from expected resultsincludechanges in the global economic environment or in the businessenvironment, andin factors such as competition and market regulation. For moreinformationregarding risk factors relevant to Havas, please see Havas' filings withthe AMF(Autorité des Marchés Financiers) (documents in French)and, up to October2006, with the U.S. Securities and Exchange Commission (documents inEnglishonly). Havas does not intend, and disclaims any duty or obligation, toupdate orrevise any forward-looking statements contained in this document toreflect newinformation, future events or otherwise.
(1): Net New Business
Net new business represents the estimated annual advertising budgetsfor newbusiness wins (which includes new clients, clients retained after acompetitivereview, and new product or brand expansions for existing clients)less theestimated annual advertising budgets for lost accounts. Havas' managementusesnet new business as a measurement of the effectiveness of its clientdevelopmentand retention efforts. Net new business is not an accurate predictor offuturerevenues, since what constitutes new business or lost business issubject todiffering judgments, the amounts associated with individual businesswins andlosses depend on estimated client budgets, clients may not spend as much astheybudget, the timing of budgeted expenditures is uncertain, and theamount ofbudgeted expenditures that translates into revenues depends on the natureof theexpenditures and the applicable fee structures. In addition, Havas'guidelinesfor determining the amount of new business wins and lost business maydifferfrom those employed by other companies.
Organic growth is calculated by comparing revenue for the currentfinancialperiod against revenue for the previous financial period adjusted asfollows:
- revenue for the previous financial period is recalculated using theexchangerates for the current financial period;
- to this resulting revenue is added the revenue of companies acquiredbetweenJanuary 1 of the previous financial period and the acquisition datefor theperiod in which these companies were not as yet consolidated;
- revenue for the previous financial period is also adjusted fortheconsolidated revenue of companies disposed of or closed down betweenJanuary 1of the previous financial period and the date of disposal or closure.Organic growth calculated by this method is therefore adjusted forvariations inexchange rate against the euro, and for variations in thescope ofconsolidation.
This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HAVAS via Thomson Reuters ONE
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