Havas is claiming “record results” in its first year of trading as a separate entity but, in truth, net revenue inching forward 1.5% to €2,736m is hardly spectacular. Organic growth for the year fell by 0.8%, hammered (as were most of its rivals apart from Publicis) by a flat Q4. Small, bolt-on acquisitions accounted for most of the revenue increase.
Europe increased 1.2%, North America (the biggest market for most of the ad holding companies) was down 6.6%, Asia Pacific and Africa up 1.1% and Latin America, which seems to be going gangbusters, up 14.7%. Havas is forecasting 2% growth for the year, ahead of WPP but well behind its bigger French rival.
CEO Yannick Bolloré (left) blamed the reverse in the US primarily on the loss of Pfizer business, also referenced by WPP and IPG. Pfizer spent around $3.3bn on advertising costs last year and has consolidated most of its business in Publicis.
Creative remains the biggest part of Havas, just ahead of media although it also has a substantial healthcare business (or did until Pfizer hit.) Havas, now independent of Vivendi, is valued at around €4bn and must now be a takeover or merger target as Publicis, helped by Pfizer among others, leaves its rivals behind.
