MUMBAI: Even as Havas’ operations in Asia Pacific felt the effects of the downturn caused by China's economic difficulties, the biggest contributors to H1 growth were India, China and Australia in the region.
The Group revenue in the first half (H1) of 2015 were 19.2 per cent up at €1034 million on an unadjusted basis, from €867 million in H1 2014.
The agency’s Europe ops maintained sound growth of +5.1 per cent in Q2 2015, resulting in a highly satisfactory first half driven by strong performances from France, Spain, Germany and Italy in particular.
The North America region continued its strong growth, driven mainly by healthcare communications and creative agencies, whereas Latin America region reported satisfactory growth of 3.2 per cent for H1 2015. However, the pace of growth is now slowing due to a downturn in the economies of key countries such as Brazil and Mexico.
Havas CEO Yannick Bolloré said, “We are pleased to note satisfactory progress across all our regions.”
The Group's organic growth (excluding exchange rate variations and changes in the scope of consolidation) was +5.5 per cent in Q2 2015 and +6.3 per cent for H1 2015.
Exchange rate variations had a positive exchange rate impact of €85.6 million over the half year.
Havas’ income from operations for H1 2015 was €137 million, an increase of 21.7 per cent over €113 million for H1 2014. Income from operations margin for H1 2015 was 13.3 per cent compared to 13 per cent for the corresponding period in 2014, an increase of 30 basis points.
Operating income rose by 22.4 per cent to €128 million, compared to €104 million for the corresponding period in 2014.
The effective tax rate was 30.4 per cent, compared to 29 per cent in H1 2014.
Net income, Group share of €77 million in H1 2015 was up 27.6 per cent on H1 2014, representing 7.4 per cent of H1 2015 revenue. Net earnings per share (basic and diluted) increased by 23 per cent to €0.18.
Bolloré added, “Havas reported strong growth in its interim results, with revenue up by 19.2 per cent and income from operations margin up again, by 30 basis points to 13.3 per cent, driven by a powerful commercial dynamic and continued execution of our "Together" strategic plan. Our strategy to create the industry's most agile and integrated Group continues to deliver strong results because it is focused on supporting our clients through their process of transformation.”
“We also believe the macroeconomic movements of recent days may offer opportunities for Havas to win new clients attracted to an innovative agency model that offers a better response to their changing needs. This strong first-half performance gives us every confidence that our annual targets will be met. I would like to thank all our clients for placing their trust in us, and our 17,500 employees for their excellent work,” he said.
