Havas: 2005 Revenue
2006年2月9日 - 4:24PM
PRニュース・ワイアー (英語)
Organic Growth of +1.8% in the Fourth Quarter PARIS, February 9
/PRNewswire-FirstCall/ -- 1) General comments After revenue
previously announced for the first nine months of 2005 of EUR 1,041
million, up +2.8% in organic growth, Havas announces today revenue
of EUR 420 million for the fourth quarter of 2005 (+1.8% in organic
growth), bringing full year organic growth to +2.5% for total
revenue of EUR1,461 million. This number represents a decrease of
2% compared to the revenue for 2004 of EUR1,491 million. The EUR
420 million of revenue for the three last months of 2005 were
characterized by two months of organic growth, October and
November, and a month of December down due to an exceptionally high
month of December 2004. 2) Detailed comments by region for the
fourth quarter There were marked contrasts in performance by region
in terms of organic growth in fourth quarter 2005: France, the rest
of continental Europe and Latin America performed very strongly,
while the final quarter proved more difficult for the United
Kingdom, North America and Asia Pacific. By region, the principal
conclusions regarding organic growth are as follows: - France (Q4
+2.9%) Fourth quarter organic growth was strong thanks to
remarkable performances from the Healthcare and Corporate
Communications activities. - United Kingdom (Q4 -4.9%) In the U.K.,
on the other hand, fourth quarter organic growth suffered from a
combination of factors: a high basis of comparison and also account
losses whose impact was first felt in the final quarter of 2005. -
Europe excluding France and the U.K. (Q4 +20.8%) The region
produced an outstanding organic growth performance in the final
quarter, thanks to Spain and also to Eastern Europe and Belgium. -
North America (Q4 -5.1%) The downturn in fourth quarter 2005
organic growth reflects a high basis of comparison (the effect of
new account wins began to be felt in fourth quarter 2004) and also
a downturn in the healthcare Communications sector. - Asia Pacific
(Q4 -17.2%) The region is still suffering from the loss of its
biggest account, Intel. The sharp organic growth decline in the
final quarter is also due in part to a strong basis of comparison
in fourth quarter 2004. - Latin America (Q4 +13.8%) Organic growth
in the region continued to be strong, with excellent performances
in Mexico, Argentina and Colombia. Including the results of our
main subsidiary in Brazil, consolidated using the equity method as
of January 1, 2005, the region's organic growth would have been
+4.7% over the full year. 3) Net New Business(a) in 2005 The
dynamic of new account wins continued in 2005, demonstrating that
Havas is a group that wins accounts. The amount of new business
wins is 24% higher in 2005 than in 2004 in terms of annual
billings. Net new business for 2005 was EUR1,055 million in
estimated annual billings, down from EUR1,548 million for 2004.
This downturn is due primarily to the loss of two of Havas' top ten
accounts, Intel and Volkswagen (in the U.S.A). The principal
accounts won during fourth quarter 2005 include: - Advertising:
GMF, ADA, BHV, and I-Tele (France), Carglass and Lafarge (Italy),
Verizon, Lumene Group and Oasys Mobile Inc. (U.S.A), Casinos du
Quebec (Canada), Dell (South Asia) and Mangocity (China) - Media:
Citroen (Pan European) Danone, AXA and Lagardere (France),
Tourespana, ADIF, Grupo Pinar and Paul Versan (Spain), Griesson De
Beukelaer (Germany), easymobile (Germany and the Netherlands),
Grupo Cencosud (Chile), Hubbard Broadcasting (U.S.A) - Marketing
services : Tena (France), Diageo (U.K), Bentley (U.S.A) -
Corporate/finance: Nexity, Sopra, Ipsopresto.com (France) Budgets
lost include Volvic in advertising for France and Germany. 4)
Highly satisfactory creative quality in fourth quarter 2005 - Euro
RSCG 4D in the U.S. was ranked top Interactive Agency by Adweek
magazine for the fifth year running - The 11 News 1 Channel
"Housewife " campaign produced by Euro RSCG Flagship in Thailand
was voted best international press advertisement of 2005 by
Campaign magazine - Euro RSCG Prague was named Agency of the Year
in East Europe at the Moscow International Advertising Festival in
November - The Citroen C4 > campaign produced by Euro RSCG
London is the advertisement prefered by the French in 2005
according to a survey realized by the Ipsos Institute - Euro RSCG
4D Sao Paulo in Brazil was named Interactive Agency of the year for
2005 by About Magazine - For the third year running, MPG in
Argentina received the Jerry Goldenberg Award for "Excellence in
Communications" in the media agencies category, again in November
The principal awards won by Havas Group agencies in fourth quarter
2005 are as follows: - BETC Euro RSCG produced another star
performance in the final quarter of 2005 by winning the Grand
Cristal award for advertising creation at the Meribel Festival for
its campaign for Canal+ entitled "La Marche de L'Empereur". - At
Eurobest 2005, the European awards for creative excellence held in
December, BETC Euro RSCG was honored for its Mikado "Star Wars"
film, Euro RSCG 4D Netherlands for two films, Volvo "Life on Board
Project" and Nokia "Nokia 20 lives", and Euro RSCG London for two
films, Citroen "Carbot" and Peugeot "Easy Life". - Three campaigns
- Dassault Systems "The Meeting" by Devarrieuxvillaret, Tuc by Lu
"Salt & Pepper" by Euro RSCG Amsterdam and the Peugeot "Easy
Life" campaign - were voted winners at the Epica Awards, one of
Europe's premier awards ceremonies which aims to encourage the
highest standard of creativity in European advertising. - Euro RSCG
Santiago, Euro RSCG Vale and Viceversa Euro RSCG were honored at
the El Ojo Iberoamerica awards, taking a total of 8 awards
including four Gold Prizes. 5) Outlook for 2005 results The trends
for 2005 full year results, which will be presented in March, are
characterized by: - income from operations margin (i.e., operating
margin before costs related to executive departures, goodwill
impairment and capital gains) in the range of 10% - net profit
improved due to a reduction of financial and tax expenses. About
Havas Havas (Euronext Paris: HAV.PA; Nasdaq: HAVS) is a global
advertising and communications services group. Headquartered in
Paris, Havas has three principal operating divisions: Euro RSCG
Worldwide which is headquartered in New York, Arnold Worldwide
Partners in Boston, and Media Planning Group in Barcelona. A
multicultural and decentralized Group, Havas is present in 77
countries through its networks of agencies located in 44 countries
and contractual affiliations with agencies in 33 additional
countries. The Group offers a broad range of communications
services, including traditional 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 14,400 people. Further information about Havas is
available on the company's website: http://www.havas.com/
Forward-Looking Information This document contains certain
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions, concerning matters that are not historical facts.
These forward-looking statements reflect Havas' current views about
future events and are subject to risks, uncertainties, assumptions
and changes in circumstances that may cause Havas' actual results
to differ significantly from those expressed in any forward-looking
statement. Certain factors that could cause actual results to
differ materially from expected results include changes in global
economic, business, competitive market and regulatory factors. For
more information regarding risk factors relevant to Havas, please
see Havas' filings with the U.S. Securities and Exchange
Commission. 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. (a) 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 translate 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. Contacts : Simon Gillham Communications : Solenne
Anthonioz Tel : +33-(0)1-58-47-90-27 Investor Relations: Herve
Philippe Chief Financial Officer Tel : +33-(0)1-58-47-91-23 2 allee
de Longchamp 92281 Suresnes Cedex, France Tel +33-(0)-1-58-47-90-00
Fax +33-(0)-1-58-47-99-99 http://www.havas.com/ SA au capital de
171 552 757,20 euros- 335 480 265 RCS Nanterre - APE 744 B APPENDIX
1 - PERFORMANCE ANALYSES Q4 2005 ANALYSIS Revenue Organic growth
Q4-05 ANALYSIS BY REGION Q4-05 vs Q4-04 (EUR millions) France 87
+2.9% United Kingdom 47 (4.9%) Europe (excl. France and UK) 96
+20.8% North America 154 (5.1%) Asia Pacific 17 (17.2%) Latin
America 19 +13.8% TOTAL 420 +1.8% FULL YEAR 2005 ANALYSIS Revenue
2005 Organic growth (EUR millions) ANALYSIS BY REGION 2005 vs 2004
France 297 +1.5% United Kingdom 177 (1.1%) Europe (excl. France and
UK) 292 +10.9% North America 576 +0.4% Asia Pacific 61 (10.0%)
Latin America 58 +18.5% TOTAL 1461 +2.5% APPENDIX 2 - 2005 ORGANIC
GROWTH EUR Millions 1. Reported Revenue 2004 1490.5 2. Exchange
rate impact +9.6 3. 2004 Revenue at 2005 exchanges rates 1500.1 4.
Impact of companies sold or closed (87.2) 5. Impact of acquisitions
+12.3 6. 2004 Revenue at 2005 exchange rates and scope 1425.2 7.
Reported Revenue 2005 1460.7 8. Organic growth +2.5% DATASOURCE:
Havas CONTACT: Communications: Simon Gillham, Solenne Anthonioz,
Tel : +33-(0)1-58-47-90-27, ; Herve Philippe, Chief Financial
Officer, Tel : +33-(0)1-58-47-91-23,
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