Havas Q3: Face-Saving Win on Danone in the U.S. Distracts From More Revenue Declines
Havas can breathe a sigh of relief: After pitching — and reportedly losing to WPP – the £25 million U.K. portion of Danone Groupe’s $500 million global media account, it has retained the $100 million North American business which WPP wanted.
The news will be a welcome distraction from Havas’ Q3 2009 results, which show revenue down 9.3 percent to €326 million.
There’s also another feel-good factor: While it was pointless for Havas to feel it could encroach on WPP’s U.K. Danone business because WPP’s customer relations operations are so embedded in the client over there, seeing off WPP in the West means that Martin Sorrell’s empire is not omnipotent just because he made one canny deal in France. (Omnicom got the lion’s share: the $150 million Asia business.)
Havas claims its nine-month profit margins were stable. Europe has lousy financial disclosure rules, and in “off” quarters like this one companies do not have to detail expenses and profits. But notably absent from Havas was any statement that Q3 profit may have been equally “stable.” Is a Q4 surprise on the offing?
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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