Havas squeezes costs

Chris Pash
By Chris Pash | 26 July 2024
 
Credit: Zach Betten via Unsplash

Havas lifted revenue 1.4% in the June quarter, but in organic growth terms the result was -2.3%, with the France-based global advertising group keeping a tight grip on costs.

The creative and media divisions posted “strong” performances, according to Vivendi, the parent company of Havas.

The result compares to other global advertising groups: IPG posted organic revenue growth of 1.7% for the June quarter,  Publicis was up 5.6% and Omnicom had a better than expected 5.2%.

Over the first half of 2024, Havas’s revenue increased 3.6% to €1,366 million but only 0.3% in organic growth for the six months.

Net revenue was up 3.4% to €1,308 million but “stable” on an organic basis. 

The impact of acquisitions was +3.5% and included contributions from Uncommon Creative Studio, Eprofessional, Shortcut and Ledger Bennett.  

Net revenue fell 6.4% in North America but increased in other regions: +3.8% in Europe, +0.5% in Asia-Pacific, and +8.8% in Latin America.

First half EBITA (earnings before interest, taxes, depreciation and amortisation) was up 6% to €125 million due to a continued “cost base optimisation”.  

Havas has a new strategic plan, Converged, including a group wide operating system with creativity at its core.

The plan includes investments of  €400 million in data, tech and AI over the next four years and the strengthening of the customer-centric approach of the group. 


 

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