Arvind Hickman
Mar 9, 2023

Havas hails 'aggressive' acquisition strategy as annual profit jumps 20%

Solid performance across creative, media and health.

Havas hails 'aggressive' acquisition strategy as annual profit jumps 20%

An “aggressive” acquisition strategy and “strong” commercial performance across the board has fuelled near double-digit growth for the Vivendi-owned advertising group, Havas.

The ad agency group reported annual revenues grew by 9.2% (on a constant currency and perimeter basis) to €2.77 billion ($2.93 billion).

Organic growth was up by 6.8%, which placed it behind Publicis Groupe (10.1%), Omnicom (9.4%), Interpublic (7.0%) and WPP (6.9%).

Havas said it managed to improve its profitability despite a lower organic growth rate and higher staff costs in 2022 compared with a year earlier.

Its EBITA (profit) after restructuring charges grew by 19.7% to €286 million ($302 million) and its EBITA margin of 11% of net revenues, which is marginally higher than the 10.7% it achieved in 2021.

The two largest regional contributors Europe and North America grew by 7.6% and 5.2% respectively. Asia Pacific and Africa increased 5.8% and Latin America grew 13.6%.

Havas noted consistent growth across its three business lines of Creative (which accounts for 43% of revenue), Media (32%) and Health & You (32%).

This was partly due to organic growth, acquisitions and new business wins.

In the UK this included the Department for Education (Havas London) and Matalan (Havas Media Group).

On the acquisition front, Havas Media Group bolstered its digital, data and performance capabilities by acquiring Expert Edge, Additive+, Search Laboratory and Inviqa.

The group made eight acquisitions as part of what it called an “aggressive external growth policy”, which meant 2022 was its most acquisitive year since 2015 in terms of number of deals.

Vivendi, which also owns Canal+Group, Prisma Media and Gameloft, grew revenues by 5.1% to €9.6 billion ($10.2 billion).

Arnaud de Puyfontaine, chairman of Vivendi's management board, said. “Havas was particularly strong in 2022, with impressive and recurring growth rates from one quarter to the next.”

Campaign UK

Related Articles

Just Published

2 hours ago

Campaign's Agency of the Year 2023 open for entries

APAC’s most prominent agency awards return for its 30th year of celebration with brand new categories. Check out the key details here.

3 hours ago

Emma Montgomery takes CEO post at DDB Chicago

She exits as the CEO of Leo Burnett Australia to fill a position that has been open for seven months amid an exodus of DDB’s North American leadership team.

6 hours ago

How agencies are addressing mental health in the ...

Agencies are taking increased steps to support the mental health and well-being of their employees. But simply offering unlimited paid time off or adding a new ERG won’t cut it, according to creative talent.

13 hours ago

Tata Consultancy Services most valuable Indian ...

Interbrand India has released its 2023 ‘Best Indian Brands Report'