Havas: Strong Growth in H1 2007 Results
2007年9月27日 - 1:53AM
PRニュース・ワイアー (英語)
SURESNES, France, September 26 /PRNewswire-FirstCall/ -- - Marked
upturn in profitability in first half 2007 compared to first half
2006: - operating income +34.4% - net income (Group share) +70.6% -
First half 2007 earnings per share up +60.0% compared to first half
2006 - A stronger financial structure founded on a significant
reduction in net debt at June 30, 2007 to EUR430 million compared
to EUR648 million at June 30, 2006 Fernando Rodes Vila, CEO of
Havas, stated: "These satisfactory first-half 2007 results for
Havas are in line with expectations. Continuing our focus on
winning new business, rationalization and cost control is the key
to the Group's long-term, profitable growth." 1. 2007 interim
results and financial position at June 30, 2007 The Board of
Directors, at its meeting of September 26, approved the interim
results for the period ended June 30, 2007. - At EUR729 million in
first half 2007, Group revenue was up +1.3% in gross terms compared
to the first half of 2006, due primarily to the strategy of
reinforcing talents and New Business teams introduced in 2006, and
despite the appreciation of the euro against the dollar which had a
negative impact on the Group of EUR20 million in the first six
months of the year by comparison with the same period in 2006. -
The Group's organic growth in the first half of 2007 improved as
follows: 1st quarter 2007 + 3.2% 2nd quarter 2007 + 5.4% First half
2007 + 4.4% At 4.4%, organic growth in first half 2007 was at its
highest level since the first half of 2001. - Income from
operations, at EUR75 million, showed a significant increase of
+16.9% over first half 2006. Margin on income from operations rose
+1.4 points from 8.9% to 10.3%, thanks to tight cost control. -
Operating income also stood at EUR75 million, a substantial
increase of +34.4% compared to first half 2006. Operating margin
was 10.3% in first half 2007 compared to 7.7% for first half 2006,
an increase of +2.6 points. - Net income (Group share) was EUR35
million for first half 2007, a remarkable +70.6% increase compared
to first half 2006. - Earnings per share for the first half of 2007
were 8 centimes (EUR) compared to 5 centimes (EUR) for first half
2006, an increase of +60.0%. - The Group's financial structure also
improved significantly in H1 2007 by comparison with the first half
of 2006. Net debt at June 30, 2007 stood at EUR430 million compared
to EUR648 million at June 30, 2006. Average net debt[1] for the
period was EUR404 million in first half 2007 compared to EUR517
million in first half 2006 and EUR527 million in the second half of
2006, a reduction of over 20%. 2. Highlights of first half 2007 The
first half reaped the benefits of new account wins from the
previous year, with the biggest contributors among these new
clients being: Reckitt Benckiser, Sanofi-Aventis, Pfizer, Exxon
Mobil, Progressive Direct, SFR, Banco Santander, GSK and Barclays.
Net New Business grew strongly over the first half, by more than
EUR1.2 billion, the highest level in the last five years. Some of
the key account wins include Sears, Volvo, Kraft Foods, Turespana,
BBC and Virgin Mobile. All the Group's main businesses contributed
to second quarter organic growth, in particular healthcare
communication and media consulting. Multimedia business also
continued to make progress. Performance was dynamic across all the
regions. The 2007 Interim Results presentation is available on the
company's website: http://www.havas.com/ APPENDIX: FINANCIAL
INFORMATION See the press release available on the Havas website:
http://www.havas.com/ About Havas Havas (Euronext Paris: HAV.PA) is
a global advertising and communications services group.
Headquartered in Paris, Havas operates through its two worldwide
networks, Euro RSCG Worldwide and Havas Media, which are
headquartered in New York and Barcelona respectively, and through a
number of independent agencies renowned for their creativity, such
as Arnold Worldwide Partners. A multicultural and decentralized
Group, Havas is present in more than 75 countries through its
networks of agencies and contractual affiliations. 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 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 Autorite des Marches
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 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. (1) Average net debt (quarterly or annually) is
calculated for the 4 main countries (France, USA, UK and Spain) as
the difference between structured gross debt (océanes, credit
lines, etc.) and cash at bank measured on a daily basis; for the
other countries, average net debt is the debt recognized at the end
of each quarter. The closing position is a net book debt position.
Contacts : Communications : Lorella Gessa Tel:
+33-(0)-1-58-47-90-36 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 DATASOURCE: Havas CONTACT: Contacts :
Communications : Lorella Gessa, Tel: +33-(0)-1-58-47-90-36, ;
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,
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