Havas aims to deliver earnings growth in 2003

PARIS - Havas returned to profit in 2002, reporting a figure of €23.5m (£16.1m) against a loss of €57.8m in 2001 as the French advertising group vows to improve earnings again this year, whatever happens in the advertising market.

Havas, owner of Euro RSCG Worldwide, Arnold Worldwide and the Media Planning Group, delivered a promised increase in the margin of earnings before interest and tax, which rose from 3.6% in 2001 to 11.1% in 2002. However, the group cut its dividend to nine cents a share compared with 17 cents in 2001.

Alain de Pouzilhac, chief executive officer, Havas said: "Whether the advertising market, because of the geopolitical and macro-economic situation, remains stable or turns negative, we will pursue the same objectives in 2003: the improvement of our EBIT margin and the improvement of our cashflow."

Revenue for the year was down by 11.3% to €1.99bn, while organic growth slipped by 6.8%. However, Havas said that this was the third-best performance among the major advertising groups for the year. Only Omnicom saw positive organic growth in the year of 2.8%, while Publicis' organic growth fell by 3.9%.

Operating profit for the year was €220m, up 170% from 2001's €81m.

The year saw new-business wins on a global basis from Yahoo!, Reckitt Benckiser, Nestle and Bearing Point, while account losses included the Zest and Bounty brands from Procter & Gamble, Isuzu and Australian financial services company Macquarie Bank.

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