SURESNES, France: Havas, world number five agency holding company, blames the euro's current upsurge in value for slicing around €11 million ($14.87m; £7.5m) from its results for the first quarter of 2007.
Based on current exchange rates, group revenues were €337m, marginally below the €339m earned in the same quarter last year.
Organic growth, however, was healthy at 3.2% worldwide; although net new business for the quarter totalled €545m, well below last year's €620m.
The three international Havas networks - Euro RSCG Worldwide, Arnold Worldwide and Media Planning Group - enjoyed mixed regional fortunes. The figures below in brackets indicate revenue in € millions and organic growth for the quarter ...
- France: (73, +2.6% in Q1 2007 versus 70, -1.4% in Q1 2006)
Euro RSCG continued to record strong organic growth, with excellent performances in CRM, healthcare communications and traditional advertising.
- Great Britain: (42, 0.0% in Q1 2007 versus 40, -2.6% in Q1 2006)
The Q1 revenue stream in Great Britain was largely attributable to traditional advertising and corporate communications, but the region was penalised by certain marketing services.
- Europe, excluding France and Great Britain (70, +8.2% in Q1 2007 versus 65, +5.8% in Q1 2006)
Europe continued its remarkable organic growth of 2006 right into the first quarter of 2007, particularly Havas Media in Spain. The whole region posted growth (especially the central European countries) with the exception of the Netherlands.
- North America: (122, -0.8% in Q1 2007 versus 138, -6.7% in Q1 2006)
The Q1 situation was positive in media buying, healthcare and corporate communications, but contrasted in traditional advertising and marketing services. Certain agencies returned to high growth while others were closer to the bottom of the cycle. Arnold Boston should reap the benefits of the recently awarded Volvo account from the second half of the year onwards.
- Asia Pacific: (14, +8.6% in Q1 2007 versus 13, -9.5% in Q1 2006)
The region has continued the growth pattern of year-end 2006 and the trend is now spreading to a large number of countries.
- Latin America: (16, +24.6% in Q1 2007 versus 13, +19.1% in Q1 2006)
In Latin America, all the indicators are positive and double-digit growth was recorded once again in the first quarter.
In view of the seasonality of the group's business, declared Havas, the main performance indicators for Q1 2007 are in line with expectations.
Data sourced from multiple origins; additional content by WARC staff