HAVAS: Net Income, Group Share: +81% by Comparison With 2006
10 März 2008 - 8:44PM
PR Newswire (US)
- Strong growth in profitability in 2007 compared to 2006: -
Operating income EUR168 million compared to EUR121 million in 2006
(+39%) - Operating margin 11.0% compared to 8.2% in 2006 (+2.8
points) - Net income, Group share: EUR83 million compared to EUR46
million in 2006 (+81%) - Improvement in financial structure -
Reduction in net debt at December 31, 2007 of over 40%, to EUR226
million compared to EUR382 million at December 31, 2006 - Marked
increase in operating cash flow - Dividend proposed of EUR 4 cents:
+33% compared to 2006 "The results for 2007 are up sharply on 2006
and ahead of target. In 2008, we will continue our efforts to win
new business, optimize resources and control costs. We are
especially satisfied with our strong cash flow generation and debt
reduction, enabling Havas to regain real financial autonomy." -
Fernando Rodes Vila, Chief Executive Officer of the Havas Group. 1.
2007 results The Board of Directors, meeting on March 10 under the
chairmanship of Vincent Bollore, approved the annual accounts for
the 2007 financial year. - Group revenue of EUR1,532 million
reported for 2007 showed record annual organic growth of +7.1% -
the highest rate since 2000 - and an increase of +4.1% at current
exchange rates over 2006. Stronger organic growth in all regions
and across all Group businesses was driven by the positive
contribution from major international clients and new account wins
in 2006 and 2007. - The Group's organic growth in 2007 increased
over each quarter: Quarter 1 3.2% Quarter 2 5.4% Quarter 3 9.3%
Quarter 4 9.8% Year 2007 7.1% - At 9.8%, organic growth in Q4 2007
was the highest quarterly growth rate recorded since 2000. - Income
from operations totaled EUR169 million, an increase of +21%
compared to 2006, with margin on income from operations gaining
+2.6 points from 9.5% in 2006 to 11.1%, thanks to rationalization
and cost control. - Operating income rose to EUR168 million, a
marked increase of +39% over 2006. An operating margin of 11.0% in
2007 compared to 8.2% in 2006 represents an increase of +2.8
points. - Net income, Group share, was EUR83 million in 2007,
compared to EUR46 million in 2006, an increase of +81%. - Earnings
Per Share were EUR 19 cents in 2007 compared to EUR 11 cents in
2006, an increase of +73%. 2. Financial position at December 31,
2007 - The Group's financial structure was considerably reinforced
in 2007: - Net debt stood at EUR226 million at December 31, a
reduction of 41% by comparison with December 31, 2006. Average net
debt for the year was also down sharply (-25%) at EUR389 million. -
The debt maturity has been now extended from two and a half years
in 2006 to over four years, for a level of net debt representing
barely one year of EBITDA at December 31, 2007. - The bond issue
with redeemable equity warrants attached (French OBSAAR) of January
2008 has proved a remarkable success. Together with the issue of
December 2006, it reflects the level of confidence in the Group's
future development among senior executives, who have invested
almost EUR20 million from their personal funds. - Cash flow
generation made significant progress. Operating cash flow increased
from EUR86 million in 2006 to EUR264 million in 2007. 3. Decisions
of the Board of Directors The Board of Directors decided to appoint
Messrs. Antoine BERNHEIM and Antoine VEIL as directors to replace
outgoing directors Mr. Thierry MARRAUD and BOLLORE Medias
Investissements, represented by Mr. Marc BEBON. These appointments
will be subject to ratification by the next Annual Shareholders'
Meeting on May 29, 2008. The Board of Directors further decided to
propose to the next Annual Shareholders' Meeting: - A dividend of
EUR 4 cents per share, an increase of 33% on the dividend paid in
2006. - The appointment of Messrs. Yves CANNAC and Pierre GODE as
new independent directors. An Audit Committee and a Compensation
Committee are to be created as indicated at the Annual
Shareholders' Meeting of June 11, 2007. - The appointment of
Longchamp Participations, represented by Mr. Jean de YTURBE, and
Financiere de Longchamp, represented by Mr. Herve PHILIPPE,
replacing EURO RSCG and HAVAS PARTICIPATIONS, represented by the
same individuals. APPENDIX 1: Financial Information The table with
the financial information is available on the Havas website:
http://www.havas.fr/havas-dyn/en/pressroom-pressreleases.1.html
APPENDIX 2: Biographies Mr. Antoine Bernheim Antoine Bernheim holds
degrees in science and law, and higher degrees in private and
public law. After serving as a partner in bankers Lazard Freres
from 1967 to 2002 and as Chairman and Chief Executive of insurance
company La France, in 1973 he was appointed a director of Italian
insurance company Assicurazioni Generali S.p.A. and of its main
subsidiaries, before becoming Vice President and then operating
Chairman. He is currently a member of the Supervisory Board of
Eurazeo and of the well-known Italian investment bank Mediobanca,
and as Deputy Chairman of the Supervisory Board of Intesa Sanpaolo
S.p.A. He is also Executive Chairman of Assicurazioni Generali
S.p.A., a director of its main subsidiaries and Deputy Chairman of
Alleanza Assicurazioni S.p.A. He is also involved in industry as
Vice President of L.V.M.H., Vice President of Bollore and a
director of Ciments Francais. Mr. Antoine Bernheim holds the
following honors and decorations: Grand'Croix de la Legion
d'Honneur and Commandeur des Arts et Lettres in France, Grand Cross
of the Order of Merit of the Republic in Italy and Commander of the
National Order of the Southern Cross in Brazil. Mr. Antoine Veil
Antoine Veil is a graduate of the Institut d'Etudes Politiques de
Paris and of the Ecole Nationale d'Administration. He is an
Inspector of Finances, 1st. Class (retired). After serving on the
staff of various ministerial offices until 1963, he became Delegate
General of the French shipowners' federation, the Comite Central
des Armateurs de France (CCAF), and Chief Executive of Groupe des
Chargeurs Reunis, positions which he held from 1964 to 1968. From
1971 to 1996, he served as Chairman of a number of leading air, sea
and rail transport companies. He has been Chairman of A.V.
Consultants since 1989. Mr. Antoine Veil holds the following honors
and decorations: Grand Officier de la Legion d'Honneur, Commandeur
de l'Ordre National du Merite, Officier de la Sante Publique,
Officier du Merite Commercial et Industriel, Chevalier du Merite
Agricole and Chevalier de l'Economie Nationale. About Havas Havas
(Euronext Paris: HAV.PA) is a global advertising and communications
services group. Headquartered in Paris, Havas operates through its
two worldwide networks, Euro RSCG Worldwide and Havas Media, which
are headquartered in New York and Barcelona respectively, and
through a number of independent agencies renowned for their
creativity, such as Arnold Worldwide Partners. A multicultural and
decentralized Group, Havas is present in more than 75 countries
through its networks of agencies and contractual affiliations. 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 which speak
only as of the date on which they are made. Forward-looking
statements relate to projections, anticipated events or trends,
future plans and strategies, and reflect Havas' current views about
future events. They are therefore subject to inherent risks and
uncertainties that may cause Havas' actual results to differ
materially from those expressed in any forward-looking statement.
Factors that could cause actual results to differ materially from
expected results include changes in the global economic environment
or in the business environment, and in factors such as competition
and market regulation. For more information regarding risk factors
relevant to Havas, please see Havas' filings with the Autorite des
Marches Financiers (documents in French) and, up to October 2006,
with the U.S. Securities and Exchange Commission (documents in
English only). 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. (1): Average Net debt Average Net debt
(quarterly or annually) is calculated for the main 4 countries
(France, USA, UK and Spain), as the difference between structured
gross debt (oceanes, credit lines, etc...) and treasury in bank
measured on a daily basis; concerning the other countries, the
average net debt is the debt accounted as of each quarter.
Contacts: Communications: Lorella Gessa Tel: +33(0)1-58-47-90-36
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
Elsa Cardarelli Tel: +33(0)1-58-47-90-58 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.fr/ DATASOURCE: Havas CONTACT:
Contacts: Communications: Lorella Gessa, Tel: +33(0)1-58-47-90-36,
; 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, ; Elsa Cardarelli, Tel: +33(0)1-58-47-90-58, ,
2 allee de Longchamp 92281 Suresnes Cedex, France, Tel
+33(0)1-58-47-90-00, Fax +33(0)1-58-47-99-99
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