Havas shows growth but is still negative in UK and US

LONDON – Havas has made a return to positive organic growth in some regions in the first quarter after slumping last year, but growth in the UK and US was not evident.

Overall, Havas saw organic growth move into the black up 0.7% in the first quarter of 2004, up from a fall of 3.8% in the fourth quarter of last year. Excluding companies for sale, Havas said that organic growth is 1.6%.

Havas has seen its strongest performance in its home market of France, where in terms of growth it was up nearly 8%, and said it had experienced positive growth in the rest of Europe except the UK. In Asia Pacific it was up 6.8% and Latin America was up 7.6%.

Havas said that there was improvement in the trend in North America and the UK, although organic growth remained negative.

Estimated billings for the first quarter are €2.4bn (£1.6bn) with revenues of €357m. Havas said the global recovery in adspend still remained uncertain, although it said there were undeniable improvements in the US and Asia-Pacific.

The French holding company, which earlier this month sold off 75% of WCRS in London to its management, said it had now completed 80% of the disposal and closure programme.

The restructure programme, which cost almost 1,000 jobs, was undertaken in part to placate investors after a tough 2003 that saw the group report a 31% fall in first-half earnings.

The shake-up also positioned Euro RSCG as the UK's third-largest marketing communications group.

Alain de Pouzilhac, chairman and CEO of Havas, said: "To relaunch the group in 2004 we have worked hard, redefined a strategy, completed the necessary restructuring within the time frame we set for ourselves and hired new talent. This positive result is the natural consequence of all this."

He added: "In this context we continue to focus on our ambition as a 'challenger': achieving the double objective of positive organic growth and a strong improvement in our profitability."

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