Havas Q1 results: Strong Latam Digital and Media Business
Havas announced its Q1 2013 financial results. Organic growth decreased by 0.9%. Despite overall stagnation, Havas Latin American business was one of the positive highlights. Latin America had a by 3.8% organic growth rate.
David Jones, Global CEO Havas, said: "Business in North America slowed after outperforming the market
in Q4 2012, but emerging markets remain solid. Digital, media, advertising and healthcare
communication all made significant contributions to Group performance."
Consolidated Group revenue for the 1st quarter of 2013 was €386 million compared with €387 million for Q1 2012, a slight decrease of -0.3% on an unadjusted basis.Organic growth in Q1 2013 was -0.9%, set against +3.5% for the same period in 2012.
The euro strengthened against the US dollar and GB pound in Q1 2013 as compared to Q1 2012, leading to a negative impact on revenue of almost €4 million.
Account Wins in Mexico and Brazil
Latin America reported good growth thanks to the digital and media businesses, and to strong growth in Mexico. This quarter Havas has won TV Azteca account in Mexico and the digital account of Ale Combustiveis in Brazil. Healthcare communications and advertising also made positive contributions, according to the company.
In North America, following a very strong Q4 2012 (+6.5%), the region posted negative growth (-3.9%) driven by high comparisons and certain one-off account losses from last year including Dell at Arnold, and Sprint and Exxon at Havas Worldwide. "Healthcare communications continued to outperform and deliver strong growth despite significant declines in Pfizer, as did media. We expect the impact of the one-off losses to tail off in Q2 2013", said the company in a statement.