Havas upbeat as Q1 results show modest UK decline

LONDON - Havas, the parent company of media agencies MPG and Arena BLM, said its UK division showed "good resistance" in the first quarter of 2009, with organic growth down just 1.6% year on year.

Chairman of Havas, Vincent Bollore
Chairman of Havas, Vincent Bollore

According to Havas' results, the relatively strong performance in the UK and France was not replicated elsewhere, with total revenue dropping 6% year on year to €325m, and organic growth declining by 8.4%.

Havas said the decline in revenue and growth was due to reduced spending by clients in the financial and healthcare sectors, particularly in the US, and the impact of the loss of computer giant Dell's Asia Pacific media account.

According to the report, ad expenditure declined in southern Europe, impinging growth, despite Havas' declaration that it was in a strong position and increasing market share.

Major account wins, including Magners Pear Cider and Air France subsidiary CityJet for Euro RSCG London, offset the company's business losses, such as Carrefour and Radio Shack.

Net new business was slightly down from €510m in the first quarter of 2008 to €507m, but the company said business remained strong and it expected recent wins to positively impact the group's figures in the second half of this year.

Alongside Havas Media, which consists of MPG, BLM and Havas Sports, Havas owns the ad agency network Euro RSCG and a number of local agencies and networks across 75 countries.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Virgin, Baileys and Camelot join the line-up at Media360

Virgin, Baileys and Camelot join the line-up at Media360

Virgin Media, L'Oreal, Homebase and Shell are just some of the brands gearing up to speak at Brand Republic Group's 11th annual Media360 conference next month.

Share
My Media Week: Paul Mead

My Media Week: Paul Mead

This week, Paul Mead, founder and managing director of VCCP Media, searches for a head of strategy and innovation, presents to News UK and wonders if he's the last person alive not to have finished 'Breaking Bad' yet.

Share
Sky launches #WatchOnSky automated viewing on Twitter

Sky launches #WatchOnSky automated viewing on Twitter

Sky has started to trial its #WatchOnSky tool on Twitter, which lets customers watch or record TV programmes by simply clicking icons contained within a tweet.

Share

Get news by email