Havas confirms expectations with 52% rise in profits

LONDON - Havas has reported profit after tax for the first half of the year of €34m (£23m), up 52% year on year, as revenue at the French ad group fell 8.7% to €700m.

The figures were in line with analysts' expectations. The profit increase was largely due to a reduction in the group's financial costs, achieved by buying back bonds after a rights issue last October.

Havas' profit margin saw a small rise from 10.6% in the first half of 2004 to 10.8% this period.

The results included expenses related to the departure of former chief executive Alain de Pouzilhac, but the amount was not disclosed. He was ousted in June after the French corporate raider Vincent Bollore demanded seats on the board of Havas. Bollore has since taken over as chairman of the company.

The group had last month announced that its second-quarter results showed 3% organic growth.

Earlier this week, Havas' creative agency Arnold lost the US account for Volkswagen to Crispin Porter & Bogusky. VW switched without a pitch, ending its 10-year relationship with Arnold.

In January, VW of America took its $350m media account out of Havas' Media Planning Group and appointed WPP's MediaCom to the task.

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