PUTEAUX, FRANCE: Havas Group, the holding company that owns and operates Havas PR, reported 3% organic revenue growth in the first quarter of 2014 to roughly $542 million.
The percentage change was a marked improvement from the year prior, when it reported a 0.9% organic drop in revenue in the first quarter of 2013, compared with Q1 2012, to about $505 million.
In North America, the holding company saw a 3.7% organic revenue increase to $181.1 million in Q1, compared with the same period of the prior year.
In a statement, the firm noted that the positive impact from new client wins in North America, including Green Mountain, Keurig, Dish, and Liberty Mutual, is driving improved performance across all of Havas’ businesses.
The company did not break out results for Havas PR. Havas PR said it saw revenue gains of about 8% in 2013 in PRWeek's Agency Business Report.
In Europe, organic revenue growth increased 2.3% in Q1, year-on-year, which it said can be mostly attributed to the UK. France remained stable, and Germany, Italy, and Belgium contributed to the revenue increase. "Holding back" the firm’s growth in the rest of Europe, however, was Spain, the Netherlands, and Switzerland, it said in a statement.
As for the rest of the world – encompassing Asia-Pacific, Africa, and Latin America – the firm saw a 3.8% organic revenue increase, which it attributed to the media businesses and performances from its agencies in Australia, China, and the UAE.
"Growth was very satisfactory in the first quarter of 2014, driven by a solid recovery in North America, strong performances from our agencies in high-growth countries and stabilizing results in Europe, particularly in the United Kingdom and Germany, which recorded double-digit growth," Yannick Bolloré, Havas’ newly installed chairman and CEO, said in the statement.
Bolloré replaced David Jones as Havas' CEO in January, marking the holding company's third change in the position in less than three years.
Over the first quarter, Havas’ new client wins included: Pao de Açucar in Brazil, PayPal in North America, and Iglo in Europe. Net new business in Q1 amounted to $931.8 million, compared with $559.9 million in the comparable period in 2013.
However, the firm’s results were affected by the strengthening Euro and several South American currencies in Q1, which, according to the statement, had a negative impact on revenue of nearly $17 million.
A representative from Havas was not immediately available to comment about the PR side of the business.
Organic growth represents change in revenue without taking into account the impact of acquisitions or disposals.
Note: All figures were converted from euros to American dollars using the XE currency converter.