Havas today reported a revenue gain for 2015 of 17.3% to €2,188 million -- or $2.413 billion at today's exchange rate -- the first time the company’s revenue has topped 2 billion. Organic revenue growth, which excludes acquisitions and currency fluctuations, was up 5.1% for the year.
Havas CEO Yannick Bollore attributed the positive results to the firm’s “collaboration and integration” efforts in a bid to better serve client needs.
Income from operations was €315 million ($347.73 million) -- up 20% for the year -- and net cash was at €88 million ($97.12 million) as of December 31, 2015 compared to €43 million ($47.46 million) as of December 31, 2014. Exchange rate effects had a positive impact of €155 million ($171.11 million).
Creative services accounted for 63% of the company’s 2015 revenue, while 37% was attributed to media services.
North America reported full-year organic growth of 6.4%, while APAC experienced 7%, Europe 4.7%, and Latin America, 1.3%.
Net new business for the year amounted to €1,668 million ($1.84 billion). Havas has landed a new global account every quarter since the second quarter of 2013. In 2015, new creative accounts included Cola-Cola, Weight Watchers, Teva, and the global Kmart-Sears business, which agency executives said was a particular bright spot, since it underscored its "village global approach." New media business wins in 2015 included BBC and Electronic Arts.
Looking forward, Havas is focused on tightening up its operations. The 18,600-employee network is reducing its operating expenses by 40 basis points through salary reductions, limiting travel, and cutting back on stationary supplies.
Acquisitions remain a key priority. Havas spent €100 million on 13 acquisitions in 2015, up from six totaling €34 million ($37.53 million) in 2014. In 2016, these deals will either reinforce geographic footprints or strengthen certain business strategies. Above all, new acquisitions must be part of its "together strategy," says Bollore, rather than operate as a silo.
Havas believes its integrated strategy is critical to its continued success. The network currently operates 37 global "villages" — where the company has consolidated local operations into a single office complex — with 10 added in 2015.