2017 interim results
Yannick Bolloré, CEO Havas Group, commented: “Although the Group’s momentum is positive, Havas’ financial performance in the first half of 2017 suffered a slowdown which affected the industry as a whole and led to revenue and profitability below our expectations. This can be explained mainly by a greater than expected decline in investment from advertisers, increasing pressure on our margins during contract negotiations and renegotiations and the macroeconomic downturn in high-growth markets such as Brazil and Mexico where the Group has a large presence, as well as in India and China.
Even if this negative impact logically weighs on our organic growth and profitability, we decided to continue investing in our talent. Investment in new villages and in innovation have also contributed substantially to our costs this year, but are key to reaching our mid-term objectives.
While we hope that growth and profitability will slightly improve in the 2nd half of the year, these combined factors mean that we are unable to confirm our forecast of organic growth between +2% and +3%, announced at the beginning of the year.
Nevertheless, I remain confident in our ability to reach our mid-term objectives. The Group’s momentum is good thanks to our teams’ hard work and our ‘Together’ strategy. Our ability to attract talent has never been stronger, evidenced by the recent additions to our teams from around the world.
The most innovative agencies in the industry continue to join us as announced over the past few days.
Our creativity continues to be highly recognised. And the recent renewals and wins of prestigious accounts will offset the losses which will affect 2018.
Joining forces with Vivendi whose ambition is to become the world leader in content, media and communication is exciting. Vivendi will provide us with the strategic and financial means for us to develop during a time where the industry is undergoing rapid consolidation and is threatened by increasing competition from companies coming from other sectors. We are working with Vivendi to create synergies and open a new chapter in the history of our Group. A project which creates value for our clients, our talent and our shareholders.
I would like to thank our fantastic teams all over the world and our clients for their renewed partnership and continued trust“.
Press Release 08/25/2017