PARIS: Global marketing holding company Havas reported strong growth in US corporate and healthcare communications during the first half of 2006, while traditional marketing and advertising services disappointed.
Total North America revenues were Euro 274 million ($374 million) for the first half of the year, an organic decrease of 5.3% from the previous year. The company blamed that figure on leading advertising agencies and marketing service firms failing to match 2005 levels.
But the company praised both healthcare communications and media consulting as providing "significant growth in Q2." Corporate communication, the statement added, "also sustained a good level of growth." It did not break down revenues into disciplines.
The Paris-based conglomerate reported that overall first-half 2006 earnings of Euro 719 million ($912.7 million) were up from Euro 700 million ($888.6 million) last year, an increase of 2.8% Excluding exchange rate variations, due mostly to a rise in the US and Canadian dollars, revenue growth would have been only 0.5 percent.
In terms of new business, the group saw first half increases across all divisions. The company no sizeable budgets were lost. By country, key contributors to second quarter growth were Spain, Italy, and Germany. In France, corporate communications and marketing services contributed to a 2.6% upswing after a slight downturn (1.4%) in Q1 2006.
Havas agencies include Euro RSCG Magnet, Euro RSCG Life PR, and Abernathy MacGregor.