In its first-quarter financial report, Havas attributed its 24.7 per cent revenue plunge in Asia-Pacific – US$18.8 million from US$22.8 million in 2008 – to the loss of Dell’s regional account in June 2008. The report further noted Havas will continue to feel the impact of this loss in the second quarter. Excluding Dell, Havas fell eight per cent in the region.
The results also follow disappointing fourth-quarter figures in the region as organic revenue dropped 7.8 per cent year-on-year in Asia-Pacific, while the company as a whole experienced two per cent revenue growth worldwide.
“From a Havas Media perspective we see a much improved next quarter thanks to several wins that took place during the first quarter of this year. Notable among them were DBS Bank and MTS Telecom (India) and the growth of our digital business through the region,” said Vishnu Mohan, CEO of Havas Media in Asia-Pacific.
The Paris-based company also experienced a six per cent revenue decline worldwide, with revenue dropping to US$437.3 million from US$464.3 million one year earlier. Revenues fell 8.4 per cent on an organic basis.
The group attributed this loss to reduced spending by clients in the financial and healthcare sectors, particularly in the US, where spending slumped by 20 per cent and 11 per cent, respectively.
Net new business stood at $682.3 million during the first quarter compared to $686.3 million during the first quarter of 2008.
A Havas spokesperson added that the group had the least debt and strongest liquid cash situation among the holding companies.
