• by Larissa Faw , February 28, 2017

Havas Group reported a 4% gain in 2016 revenue to €2.276 million ($2.414 million) with organic revenue growth of +3.1% for the same period.

The fourth quarter was the network's strongest period, with 4.2% organic growth and revenue of €652 million ($692 million), up about 2% on a reported basis.

Havas is currently projecting 2017 organic growth of between 2% to 3%. "Q4 was a good surprise and this year we will have the same type of approach," CEO Yannick Bolloré told analysts and investors on an earnings call Tuesday.

Income from operations in 2016 was €329 million ($349.04 million), up 4%. The profit margin rose to 14.5%, up a tenth of a percentage point from 2015.

Organic growth in the Group’s North America region was 2.1% for the full year, but up sharply in the fourth quarter versus previous quarters to 7.3%.The company credited strong new business performance by Havas Media, Havas Chicago and Havas Health, as well more business from existing clients.

Europe posted growth of +5.1% for 2016. France and the UK slowed slightly in Q4, but posted what Havas termed “satisfactory” growth over the full year of 2.1% and 1.3%, respectively.

Both the APAC and Latin America regions posted organic revenue declines for the year (1.8% and 2.6%, respectively). APAC problems, per the firm, included “reduced investment by certain clients,” which affected China, Japan, Thailand, Malaysia and the United Arab Emirates. In Lain America, issues included a “sharp downturn” generally in Q4 and a number of client losses in Mexico.

Net new business wins in 2016 -- in terms of billings -- reached €2,189 million ($2,322 million). They were driven by the global media account for Swarovski (Havas Media), the global digital, advertising and content account for five consumer healthcare categories of GSK, media duties for Tracfone (Havas Media North America) Wallapop (Havas Edge), TD Bank (Havas Media North America), Tim in Italie and Brazil (Havas Italy) and Bourjois and Rimmel (BETC London).

Havas acquired a number of agencies in 2016 for €55 million ($58.35 million), accounting for earn-out and buy-out obligations, including full-service Lemz in the Netherlands and New Zealand's Mr Smith.

Havas expects 2017 to be similar to last year and has earmarked some €100 million ($106.08 million) for potential deals, CFO Francois Laroze said on the earnings call.

Using its so-called “village” model, the company continues to consolidate its agency operations in single-campus settings in cities around the world. It now has 47 villages and may add more. "They are the concrete illustration of our integrated and agile model that makes us better able to support our clients as they navigate in an increasingly complex media landscape," said Bolloré.