AD Agencies
Havas hits 2025 targets, posts 3.1 per cent organic growth
Net revenue rises to €2.78 bn as AI push and acquisitions lift performance
PUTEAUX, FRANCE: Havas delivered a solid set of full-year results for 2025, beating its own guidance as steady organic growth, tighter cost control and an aggressive push into artificial intelligence lifted margins and cash flow.
The advertising and communications group reported organic net revenue growth of 3.1 per cent for the year, slightly ahead of its guided range of 2.5 to 3.0 per cent. Net revenue rose to €2.78 billion, while adjusted Ebit climbed to €358 million, translating into a margin of 12.9 per cent, up 50 basis points from last year.
Net income increased 11.1 per cent to €210 million, with group share of net income rising 9.2 per cent to €189 million. Operating cash flow after working capital jumped 53 per cent to €360 million, reflecting improved collections and disciplined spending.
The fourth quarter capped the year on a strong note, with organic growth of 3.7 per cent, driven by momentum across Europe and North America. For the full year, North America led with organic growth of 4.9 per cent, while Europe posted 2.0 per cent growth. Latin America returned to growth, and APAC and Africa were supported by India.
Chairman and CEO Yannick Bolloré, said 2025 marked a “transformative year” for Havas, its first full year as a listed company. He credited the rollout of the group’s Converged.AI operating system and a client-centric model for delivering on guidance in a highly competitive market.
Havas continued its acquisition spree, buying majority stakes in 11 agencies during the year across Europe, Australia and New Zealand, strengthening its media, creative, health and data capabilities. The group also struck strategic partnerships with AI players Vurvey Labs and Akkio to deepen its agentic AI capabilities.
Looking ahead, Havas guided for organic growth of 2.0 to 3.0 per cent in 2026 and an adjusted Ebit margin of between 13.2 and 13.5 per cent. The group plans to maintain a dividend payout ratio of around 40 per cent and pursue five to ten bolt-on acquisitions during the year.
Havas also confirmed its medium-term ambition of lifting margins to between 14 and 15 per cent by 2028, underlining confidence in its AI-led strategy and diversified geographic footprint.
AD Agencies
Publicis posts €4.19bn Q1 revenue, 6.4 per cent growth; backs FY outlook
Ad giant signals Q2 acceleration as AI and new deals power momentum
PARIS: Publicis Groupe continues to outperform the industry, delivering a strong start to 2026 under Chairman and CEO Arthur Sadoun. Despite a volatile global macro environment, the company has now outpaced the industry for nearly 20 consecutive quarters.
For Q1 2026, total revenue reached €4,191 million, up from €4,161 million last year, with organic growth of 6.4 per cent. Net revenue, which excludes pass-through costs, stood at €3,460 million, reflecting organic growth of 4.5 per cent.
Exchange rates had a negative impact of €268 million, mainly due to a weaker US dollar and pound sterling. Acquisitions, including Adge.AI and 160over90, contributed an additional €46 million.
Performance across regions was largely positive, with some variation:
- North America, accounting for 59 per cent of net revenue, grew 4.7 per cent
- Europe recorded growth of 3.9 per cent, led by the UK at 6.2 per cent, while France grew 1.6 per cent
- Asia Pacific posted 5.9 per cent growth, driven by China at 11.7 per cent
- Latin America grew 13.3 per cent
- Middle East and Africa declined 5.1 per cent due to geopolitical challenges
AI-powered marketing services, which now make up 86 per cent of the business, grew 5.6 per cent. However, the technology segment, representing 14 per cent of revenue, declined slightly as clients reduced spending on large-scale transformation projects.
Sharing his outlook, Publicis Groupe chairman and CEO Arthur Sadoun said, “Publicis had a very strong start to the year, outperforming the industry for almost 20 quarters in a row despite the volatile macro environment. Organic revenue growth reached 6.4%, leading to 4.5% in net and further increasing the gap with our peers.” He added that the company remains confident of delivering industry-leading performance. “We are confirming our industry-leading organic growth guidance of 4 to 5%, with the 4% rock solid, and a sequential organic growth acceleration in Q2 despite a higher comparable.”
Publicis continued its expansion with the acquisition of Adge.AI in March, followed by 160over90 in April to strengthen its sports and culture marketing capabilities.
Net financial debt stood at €1,156 million at the end of March, reflecting a seasonal shift from the net cash position at the end of 2025. Average net debt over the past twelve months was €1,035 million.
The company has reaffirmed its full-year guidance, expecting net revenue organic growth of 4 to 5 per cent in 2026. It also anticipates an operating margin slightly above 18.2 per cent and free cash flow of approximately €2.1 billion.
With expectations of stronger performance in the second quarter, Publicis remains well positioned to sustain its growth momentum.
