• by Steve McClellan , March 1, 2012

Paris-based holding company Havas reported a 5.6% revenue gain to $2.2 billion for full-year 2011, with a 9% boost in profits to $160 million.

Organic revenue growth (ORG) which excludes acquisitions and currency fluctuations, was up 5.9%, the company said -- near the high end of the spectrum for holding companies in 2011, but also from a much lower revenue base.

By comparison, both the Interpublic Group and Omnicom Group reported 6.1% ORG for the year, while Publicis said it posted 5.7% ORG for 2011. WPP reported full-year ORG of 5.3%. 

Currency fluctuations worked against the company in 2011, as the Euro appreciated in value against the U.S. dollar and British pound, producing a negative exchange rate impact on revenue of $39 million. That would explain why organic growth was higher than overall revenue growth for the year.

Havas said its digital and social media operations grew rapidly over 2011 and now make up 23% of overall group revenue -- driven by organic growth, as the company did not make any significant acquisitions in those sectors in 2011.

On a geographic basis, Havas generated its strongest organic growth outside of Europe and North America, where it averaged 16.5%. European ORG was just over 2% and North American ORG was nearly 7%.

Net new business totaled nearly $1.9 billion for the year with key wins including the digital business for Unilever’s Dove deodorant portfolio and the Sony PlayStation Network in the U.S.

David Jones, CEO of Havas, stated that the company’s 2011 results were “driven by aggressive growth in digital, double-digit results in emerging markets and the growth from our major global accounts.” 

Jones said the company also reduced costs while expanding its operating profit margin three-tenths of a percentage point to 13.4%. “Our new business performance and pipeline remain solid as we move into 2012,” Jones stated.