Havas Group Q2 2020: Organic revenue growth slumps to -18.3%
While all divisions of the company felt the impact of the pandemic, Havas Health & You continued to report positive performance
In its Q2 2020 earnings announcement, Vivendi-owned Havas Group revealed a negative organic growth of -18.3%. The lacklustre performance was attributed to the COVID-19 pandemic, which affected client businesses across the world.
"In these highly challenging times, for the first half of 2020, Havas Group reported revenues of €1,019 million, down 8.5%. Net revenues5 were €977 million, down 7.9% compared to the first half of 2019. Organic growth was -11.2% (-3.3% for the first quarter of 2020 and -18.3% for the second quarter); exchange rates had a positive impact of 0.9%, and acquisitions contributed 2.4%," announced the group.
Havas informed that all divisions of the company felt the impact of the pandemic, except for Havas Health & You, which continues to report positive performance due to the gains in market share achieved last year.
At the end of June, while North America put up a satisfactory performance due to "a resilient market and growth in health communications," Europe was severely impacted by the pandemic, informed the company. "However, the agencies in the United Kingdom and Germany have proven more resistant than others. Both Asia-Pacific and Latin America recorded sharp declines," it informed.
EBITA stood at €46 million for the first half of 2020, compared to €108 million for the same period in 2019. This change, Havas said, was due to the sharp downturns in activity reported by both the Media and Creative divisions.
The company implemented a cost-reduction plan in both divisions in the early weeks of the pandemic, and by June end. Havas informed that it had absorbed nearly half the decline in revenues.For more updates, be socially connected with us on
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