Havas profits fall 11.5% to £83m

Vincent Bolloré's marketing services company, Havas, has seen net profits fall 11.5% year on year to €92m (£82.65m) in 2009, as the French group continues to struggle with a severe double-digit revenue decline for its UK operation. The company, which owns ad agency networks including Euro RSCG, reported an 8% year-on-year fall in organic, like-for-like ad revenue to €1.44bn. Havas, which doubled its dividend year-on-year to 8 cents a share, said that organic revenue in its European operations fell by 8.6% last year. France, which accounts for 23% of total group revenue, fell by 3.7% year on year, the UK dropped 11.6% and the remaining European markets were down 11.5%. While the fourth quarter was hailed as a turning point for the group generally, Havas's UK operations actually worsened, with a 14.3% slump in revenue. The UK, which accounted for 11% of total group revenue last year, was the only major market worldwide not to post a fourth-quarter organic growth figure that was better than the overall year average. Havas's North American operation, which accounted for 32% of total revenue, recorded a 7.5% year-on-year fall in organic revenue. The "rest of the world" fell 4.8% year-on-year. Within this, Asia Pacific saw organic revenue fall by 14.2% with Latin America the only market in the positive with 1.1% revenue growth year on year. Havas said that operating profit fell from €188m in 2008 to €180m last year. The company added that most markets improved heading into the tail end of the year with a 4.4% fall in organic growth. The first three quarters saw respective year-on-year falls of 8.4%, 9.8% and 9.3% in organic revenue growth. Havas's operating margin was 12.5%, an increase from 12% in 2008. The company also managed to wipe out its net debt, which stood at €79m at the end of 2008, to reach a positive cash position of €48m. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".