• by Joe Mandese  @mp_joemandese, May 10, 2005

Embattled agency holding company Havas Tuesday said it continued to improve during the first quarter of 2005, both in terms of organic growth and net new business, despite the loss of high-profile media assignments for Intel and Volkswagen at its MPG unit in the U.S. Gross new business rose 45 percent vs. the first quarter of 2004, and net new business was "positive," the company said in a first quarter earnings statement.

The results were especially encouraging for the U.S., which outpaced Havas' worldwide growth. Organic revenues rose 1.8 percent in the U.S. vs. 1.4 percent worldwide. The results did not reflect Arnold's April win of RadioShack's $250 million account, which should reflect positively on Havas' first half results when they are reported.

"Looking at the first four months of the year, the new business won brings Havas close to the net new business achieved in the same period in 2004, which is particularly encouraging," the company said, positioning the results as part of a financial turnaround that began in the first quarter of 2004, following a restructuring of its operations in late 2003.

Significant media account wins included: Autozone, Amica Insurance, EDF, Telepizza, P&O Ferries, Peugeot (Netherlands, Belgium), and Hasbro.

How Havas' improved results will factor into its own internal boardroom drama remains to be seen. While better, the results are not nearly as good as the first quarter earnings of other major agency holding companies. The management of Havas, the sixth largest agency holding company, is rumored to be fending off a creeping takeover by its largest shareholder, French corporate raider Vincent Bollore, and a showdown is expected at the company's annual meeting in June.