Havas sees revenues fall

23 October 2009

SURESNES: Havas, the global communications group, reported a 9.3% decline in organic revenues, to €326 million ($489m; £295m), in the third quarter of this year, broadly in line with its performance for 2009 as a whole.

The French company witnessed a 10.5% drop in revenues in Europe in Q3 on a like-for-like basis, with France, its home market, also off by 8.4%, to €70m, the UK by 13.7%, to €41m, and the rest of the region by 10.7%, to €73m.

North American totals fell 7.8%, to €108m, with Asia Pacific posting a slide of 13.1%, to €13m, and Latin America by 8.1%, to €21m, in the same timeframe.

During the period from January to September as a whole, total unadjusted group revenues have shrunk by 8.2%, to €1.03 billion, amounting to a contraction of 9.2% on a like-for-like basis.

Asia Pacific has recorded the most sizeable deceleration in this period, with organic sales tumbling 19.3%, to €42m, with North America also slipping 9.7%, to €340m, Europe by 9.1%, to €585m, and Latin America by 1.8%, to €59m.

More positively, Havas said the climate in Spain, Portugal and Italy improved in the third quarter, with the financial services and healthcare sectors also proving relatively resilient in North America.

Similarly, even though EuroRSCG lost one of its biggest clients, Carrefour, the retail giant, at the start of 2009, Havas has still outperformed the market as a whole in France, down just 4.4% for the year to date.

In the first nine months of the year, the Paris-based conglomerate has won net new business worth €1.1bn, including a global brief for Credit Suisse and creative duties for Heineken in the US during the third quarter.

Earlier this month, Fernando Rodes, ceo of Havas, predicted global adspend would decline by between 7% and 11% this year, adding "we should do what we wanted to do in terms of profitability and bottom line" in 2009.

Omnicom Group reported a 22.5% decline in net profits, to $165.6m, in the third quarter of this year last week.

Data sourced from Havas; additional content by Warc staff