Havas: 2005 Results

Share Name	Share Symbol	Market	Type
Havas ADS (MM)	NASDAQ:HAVS	NASDAQ	Common Stock

Havas (NASDAQ:HAVS)
Historical Stock Chart

From Jun 2019 to Jun 2024

Revenue of EUR1,461 million SURESNES, France, March 10 /PRNewswire-FirstCall/ -- - Operating income of EUR128 million, compared with EUR172 million in 2004 - Net income (Group share) of EUR59 million compared with EUR55 million in 2004, i.e. +8% - Diluted earnings per share of 14 cents, versus 16 cents in 2004 - Average net debt of EUR542 million, after EUR538 million in 2004 - 2005 proposed dividend per share of 3 cents At its meeting on March 10, the Board of Directors, chaired by Vincent Bollore, approved the 2005 financial statements drawn up in accordance with IFRS accounting standards applicable on December 31, 2005. 1) 2005 results - Organic growth was 2.5% in 2005. Revenue, however, was down 2% by comparison with 2004, due primarily to the impact of the disposals programme decided at the end of 2003 and implemented in 2004. - The Operating income has two main components: Income from operations, and Other operating expenses and income. - Income from operations down slightly Income from operations stood at EUR152 million in 2005 compared with EUR157 million in 2004, giving a margin of 10.4% in 2005 versus 10.5% in 2004. - A significantly negative total for "Other operating expenses and income" In 2005, Other operating expenses and income produced a negative total of EUR24 million, in contrast with the positive total of EUR15 million in 2004. For 2005, these include: - Costs associated with the departure of the Group's former CEO amounting to over EUR10 million, - Provisions for litigation by former senior executives or employees amounting to EUR11 million, - Goodwill impairment of EUR21 million, - Capital gains and losses on disposals which produced a net total of + EUR18 million. - The Financial result improved significantly, largely due to the partial buy-back of 2006 convertible bonds in 2004 which generated savings of EUR39 million in 2005. - Income tax was sharply reduced despite relatively stable income before tax, bringing the effective tax rate down from 28% to 17%, due primarily to increased recognition of deferred tax assets. - Net income (Group share) rose from EUR55 million to EUR59 million, i.e. an increase of 8% over 2004. - Earnings per share, whether basic or diluted, did not keep pace with this trend due to the full-year impact of the capital increase carried out in October 2004. Earnings per share, basic or diluted, fell from 16 cents in 2004 to 14 cents in 2005. 2) Financial position at December 31, 2005 Net debt at December 31, 2005 was EUR417 million, compared with EUR311 million at December 31, 2004. This increase in net debt at year-end is due to one-off items related to changes in working capital requirements. Average net debt over the year was EUR542 million in 2005 compared with EUR538 million in 2004. The 2006 convertible bond was redeemed in full on January 1, 2006 for EUR221 million. 3) 2005 dividend The Board of Directors has decided to recommend to the next Annual Shareholders' Meeting, that will be held on May 23th next, a dividend of 3 cents per share, compared with 7 cents in 2004. 4) Net New Business(a) 2005 Net new business for 2005 totaled EUR1,055 million in estimated annual billings. The main accounts won in 2005 were: - Integrated communications: Jaguar, ESPN Mobile and Lukoil in the United States, LG Electronics at the pan-European level; - Traditional advertising: RadioShack, Sony Electronics, CareFirst, Hershey's and Verizon in the United States, Afflelou, Champion, Cacharel Parfums, Tac O Tac, le Transilien (SNCF), Le Figaro, GMF and BHV in France, News Corporation Ltd, Superdrug Stores Plc in the United Kingdom, Sogecable in Spain, Citroen in Russia, Turkiye Is bankasi in Turkey, Palmers in Austria, Germany, Eastern and Central Europe; eBay in China and Dell in South-East Asia; - Media: Citroen at the pan-European level, AutoZone, Amica Insurance, BAE Systems, Esurance and Hershey's in the United States, P&O Ferries in Great Britain, the Netherlands and Belgium, Peugeot in the Netherlands and Belgium, Telepizza, Hasbro and Tourespana in Spain, EDF, ING Direct, Interparfums (Burberry, Lanvin and Lacroix), Danone, Axa and Lagardere in France, easyMobile in Germany and the Netherlands; - Marketing services: Heineken, Danone (CRM), Danoe, the 2007 Rugby World Cup and Tena in France; DirectBuy (U.S.), easyMobile (Netherlands, Germany and Great Britain); - Corporate/finance: EDF and Previade-Mutouest in France. - Healthcare: Benefiber (Novartis) and Lidoderm in the United States. 5) An excellent year for creativity in 2005 At the 52nd International Advertising Festival in Cannes, the Havas Group won awards in a number of categories: Euro RSCG Worldwide shared top ranking in terms of awards received in the Cyber category, Euro RSCG 4D Sao Paolo was rated third best interactive agency and Euro RSCG 4D Amsterdam/Fuel was awarded four Lions including one in the Titanium category (best integrated communications campaign). In addition, Euro RSCG Worldwide was ranked 8th worldwide in the Gunn Report, the international benchmark for creativity, while the Arnold Boston agency was ranked 3rd in the United States and is a member of the highly exclusive club of just nine agencies to have appeared in every Gunn Report ranking since its was first introduced. Two Euro RSCG Worldwide films featured amongst the campaigns that received most awards in 2005: the Peugeot "Toys" and Citroen "Carbot" films. 6) Outlook In order for Havas Group managers and employees to benefit from the group's growth, the Board of Directors has decided to propose to the Annual Shareholders' Meeting the introduction of a new stock options plan, the creation of an allotment of free shares and the launch of an employee share-ownership programme. 7) Decision by the Board of Directors The Board of Directors thanked Philippe Wahl for turning around the Havas Group and appointed Fernando Rodes as Chief Executive Officer of Havas. About Havas Havas (Euronext Paris: HAV.PA; Nasdaq: HAVS) is a global advertising and communications services group. Headquartered in Paris, Havas has three principal operating divisions: Euro RSCG Worldwide which is headquartered in New York, Arnold Worldwide Partners in Boston, and Media Planning Group in Barcelona. A multicultural and decentralized Group, Havas is present in 77 countries through its networks of agencies located in 44 countries and contractual affiliations with agencies in 33 additional countries. The Group offers a broad range of communications services, including traditional advertising, direct marketing, media planning and buying, corporate communications, sales promotion, design, human resources, sports marketing, multimedia interactive communications and public relations. Havas employs approximately 14,400 people. Further information about Havas is available on the company's website: http://www.havas.com/ Forward-Looking Information This document contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions, concerning matters that are not historical facts. These forward-looking statements reflect Havas' current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause Havas' actual results to differ significantly from those expressed in any forward-looking statement. Certain factors that could cause actual results to differ materially from expected results include changes in global economic, business, competitive market and regulatory factors. For more information regarding risk factors relevant to Havas, please see Havas' filings with the U.S. Securities and Exchange Commission. Havas does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. (a) Net New Business : Net new business represents the estimated annual advertising budgets for new business wins (which includes new clients, clients retained after a competitive review, and new product or brand expansions for existing clients) less the estimated annual advertising budgets for lost accounts. Havas' management uses net new business as a measurement of the effectiveness of its client development and retention efforts. Net new business is not an accurate predictor of future revenues, since what constitutes new business or lost business is subject to differing judgments, the amounts associated with individual business wins and losses depend on estimated client budgets, clients may not spend as much as they budget, the timing of budgeted expenditures is uncertain, and the amount of budgeted expenditures that translate into revenues depends on the nature of the expenditures and the applicable fee structures. In addition, Havas' guidelines for determining the amount of new business wins and lost business may differ from those employed by other companies. Contacts : Simon Gillham Communications: Solenne Anthonioz Tel: +33-(0)1-58-47-90-27 Investor Relations: Herve Philippe Chief Financial Officer Tel: +33-(0)1-58-47-91-23 2 allee de Longchamp 92281 Suresnes Cedex, France Tel +33-(0)-1-58-47-90-00 Fax +33-(0)-1-58-47-99-99 http://www.havas.com/ SA au capital de 171 552 757,20 euros- 335 480 265 RCS Nanterre - APE 744 B APPENDICES: CONSOLIDATED FINANCIAL STATEMENTS ARE AVAILABLE ON THE HAVAS WEBSITE DATASOURCE: Havas CONTACT: Communications: Solenne Anthonioz, Tel: +33-(0)1-58-47-90-27, , Investor Relations: Herve Philippe, Chief Financial Officer, Tel: +33-(0)1-58-47-91-23,

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

HAVS Havas ADS (MM)