Havas, owner of Euro RSCG, Media Planning Group and Archibald Ingall Stretton, has reported that revenues increased 4.7% last year and says it is in strong position to deal with global economic downturn.
The marketing services group, led by Fernando Rodés Vilà (pictured), says revenues hit €1.6bn (£1.1bn) last year while operating margin increased 1.2% to 12.1%, both improvements helped push operating income up 12.5% to €189m (£135m).
In the UK, revenues increased 2% on an organic basis to €52m (£37m).
Havas says “strong” cash generation and cost control has left it with “one of
the strongest financial structures in its sector and one of the lowest levels of net debt in the market”.
“This position of strength enables us to face the current challenging economic climate with confidence in the Group’s ability to transform New Business into extra revenue and to pitch successfully for new accounts,” the group says in a statement.
The full-year results come as reports emerge that Havas, has restructured its operations, bringing together Euro RSCG and Arnold Worldwide in to a new unit headed by Euro RSCG chief executive David Jones.
This follows the launch of Havas Media in the UK last November that united acquisitions including Arena BLM and experiential agency Cake with its existing agency brand Media Planning Group.
Last week, rival Interpublic Group reported organic revenue growth increased 6.2% in 2008 while Publicis Groupe reported a slight 1% rise in group revenues in 2008.