HAVAS : HAVAS : 1st Quarter 2013
Puteaux, May 2^nd, 2013
1^st Quarter 2013
*Q1 2013revenue flat: €386 million versus €387 million in Q1 2012 (-0.3%
net growth and -0.9% organic growth)
*Net New Business^1 firm:€402 million
David Jones, Global CEO Havas, said: "The Group held up well against the sharp
downturn in the European market overall in the first quarter of 2013,
achieving positive performances in the key markets of France and the UK.
Business in North America slowed after outperforming the market in Q4 2012,
but emerging markets remain solid. Digital, media, advertising and healthcare
communication all made significant 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 €386 million
compared with €387 million for Q1 2012, a slight decrease of -0.3% on an
Organic growth in Q1 2013 was -0.9%, set against +3.5% for the same period in
The euro strengthened against the US dollar and GB pound in Q1 2013 as
compared to Q1 2012, leading to a negative impact on revenue of almost €4
The Group's key performance indicators in Q1 2013 were broadly in line with
Highlights by region:
Results in Europe were mixed, with France reporting organic growth of +1.2% in
Q1 2013, despite a high 2012 baseline, driven largely by advertising, media
and digital. The UK returned to growth, with organic growth up +0.7% versus Q1
2012, despite budget cuts by certain clients. The Rest of Europe reported an
overall decline (-2.4%) with the exception of the digital business, which
continues to perform well across the board. Germany and Turkey continue to
report good growth.
Following a very strong Q4 2012 (+6.5%), North America posted negative growth
(-3.9%) driven by high comparisons and certain one-off account losses from
last year including Dell at Arnold, and Sprint and Exxon at Havas Worldwide.
Healthcare communications continued to outperform and deliver strong growth
despite significant declines in Pfizer, as did media. We expect the impact of
the one-off losses to tail off in Q2 2013.
Rest of world:
Latin America once again reported good growth thanks to the digital and media
businesses, and to strong growth in Mexico.
Growth continued in Asia-Pacific despite the loss of a significant account in
Australia and the slow down of the corporate communications business in Hong
Healthcare communications and advertising made positive contributions.
3. NET NEW BUSINESS^1
The Group delivered strong new account wins in Q1 2013, with net new
business^1 of €402 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's pool
of talent, with the announcement of several major new hires at Havas
Worldwide, Havas Media and Arnold. Starting in January, former Arnold
Worldwide CEO Andrew Benett was named to the new post of Havas Worldwide
Global President, reporting to David Jones, who remains Global CEO of the
Havas Worldwide network. Robert LePlae, formerly Global President at Arnold,
steps in to Benett's CEO role there.
Matt Weiss joined the network as Global Chief Marketing Officer, and Matt
Howell stepped into the additional role of Chief Digital Officer for Havas
Creative Group, expanding his responsibilities to both the Arnold and the
Havas Worldwide networks.
Havas Worldwide recruited Vin Farrell from R/GA to fill the new role of Global
Chief Content Officer, and Sean Lyons, also formerly of R/GA, as Global Chief
Digital Officer. And in Chicago, Laura Maness was tapped to head new business
development and agency growth as U.S. Chief Growth Officer.
Brendan Tansey, digital pioneer and former CEO of Wunderman UK, was named CEO
of Socialistic China, part of Havas Worldwide Digital. This new startup was
launched at the beginning of April and will specialize in digital work in
Following the simplification of its global network and the success of its
global rebranding at the beginning of the year, Havas Media Group also made
several senior management announcements: Dominque Delport was appointed Global
Managing Director, and Raphaël De Andreis joined Havas Media France as CEO.
5. AWARDS & RECOGNITIONS
The Gunn Report, published in January, named "The Bear" for Canal+ the world's
most awarded TV spot, not just in 2012 but in the entire history of the Gunn
The Mobius International Festival awarded BETC aBest of Show for Canal+
(Borgia) plus a further three Mobius awards for Canal+ in the Online and
Television (Entertainment Media Promotion and Direction) categories, as well
as a Mobius in New Media for MCM Pizzas.
At the Andy Awards, Arnold Boston was awarded Bronze in the Direct Response
category for Al Gore's "Reality Drop" for Climate Reality.
Havas Worldwide Amsterdam was recognized in the Social Media category for its
"Tweetphony" campaign for the Metropole Orchestra at the IAC Awards.
In the Asia-Pacific region, Havas Worldwide Sydney won a Gold for Virgin
Mobile "Fair Go Bro" and an award in the Integrated category in addition to a
Silver in Interactive for Sony NEX "DSLR Gear No Idea" at the Adfest and Host
took Silver for Air New Zealand. At the A.W.A.R.D, Havas Worldwide Australia,
Host, One Green Bean and Havas Worldwide Singapore scooped a total of ten
awards, including seven Silver and three Bronze.
At the Dubai Lynx, Havas Worldwide Dubai netted Gold in Promotion for Reckitt
Benckiser/Dettol. Havas Digital Middle-East took four Bronze awards at the
Cristal MENA awards for Reckitt Benckiser/Durex.
Havas Sports & Entertainment UK was awarded for Lloyds at the European
Sponsorship Association Excellence Awards.
In France, BETC topped CB News magazine's Hits d'Or creative league table;
Havas Worldwide Paris, BETC and W&Cie were awarded a Grand Prix, a Special
Prize, three Gold and a Silver at the Top Com Corporate Business awards; the
Club des DA presented a total of 15 awards to Leg, BETC, Havas Worldwide Paris
and H; at the Grand Prix Stratégies du Marketing Digital, BETC walked away
with a Grand Prix for Evian, two more awards for Evian and Air France and a
Distinction for Peugeot, while Leg achieved a Distinction for SFR.
Havas Worldwide London took two Bronze awards at the British Arrows; AIS
London took Best Integrated Company for Sony Music at the IAB Creative
Showcase Grand Prix awards; Havas Engage won a Silver and a Gold at the Mixx
Awards in Turkey; Havas Worldwide Prague won a Silver and four Bronze awards
at the Louskacek; Havas Worldwide Zurich won two Bronze awards at the ADC
Cake New York won a Silver SABRE award in the "TV Format Creation and
Licensing" category for Glacéau Vitaminwater and Cake UK won the top award in
the "Best Widget/Mobile Application" category for its Mobile Memories campaign
for Carphone Warehouse.
In the United States, Havas PR North America took a Gold and a Bronze at the
Bulldog Digital/Social PR Awardsand a further two prizes at the CSR Awards
plus a place on the "CSR A-List" for the second year running. At the Golden
Hedgehog PR Awards, Havas PR UK carried off the Grand Prix and a Campaign of
the Year award for Asda.
In Asia, the Youth Marketing Forum/Social Media Summit & Awards named Havas
Worldwide Digital Matrix India as Social Media Agency of the Year; Havas Media
China took two prizes at the Adworld Awards and another at the RTV China
One Green Bean named PR Agency of the Year by Ad News (Australia) and Havas
Gurisa (Uruguay) named Agency of the Year by Desachate.
The Annual Shareholders' Meeting will be held on June 5^th, 2013 at 9 a.m., at
the Havas headquarters in Puteaux.
Havas (Euronext Paris SA: HAV.PA) is one of the world's largest global
advertising, digital and communications groups. Headquartered in Paris, Havas
operates through its two Business Units: Havas Creative Group and Havas Media
Havas Creative Group incorporates the Havas Worldwide (www.havasworldwide.com)
network - formerly Euro RSCG Worldwide - (316 offices in 75 countries), the
Arnold (www.arn.com) micro-network (16 agencies in 15 countries on 5
continents) as well as several other strong agencies.
Havas Media Group (www.havasmedia.com), is the world's fastest growing media
group, operating in over 100 countries, and incorporates two major commercial
brands: Havas Media (ex MPG) and Arena.
A multicultural and decentralized Group, Havas is present in more than 100
countries through its networks of agencies and contractual affiliations. The
Group offers a broad range of communications services, including digital,
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 15,000 people. Further information about Havas is available on
the company's website: www.havas.com
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 AMF (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
translates 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.
Organic growth is calculated by comparing revenue for the current financial
period against revenue for the previous financial period adjusted as follows:
- revenue for the previous financial period is recalculated using the exchange
rates for the current financial period;
- to this resulting revenue is added the revenue of companies acquired between
January 1 of the previous financial period and the acquisition date for the
period in which these companies were not as yet consolidated;
- revenue for the previous financial period is also adjusted for the
consolidated revenue of companies disposed of or closed down between January 1
of the previous financial period and the date of disposal or closure.
Organic growth calculated by this method is therefore adjusted for variations
in exchange rate against the euro, and for variations in the scope of
Communications: Lorella Gessa
Communications Director, Havas Group
Tel: +33 (0)1 58 47 90 36
Investor Relations: Aurélie Jolion
Director of Investor Relations, Havas Group
Tel: +33 (0)1 58 47 92 42
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information contained therein.
Source: HAVAS via Thomson Reuters ONE
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