Havas Q3 net revenue rises 7.2 per cent as India bucks regional slowdown

MUMBAI: Havas has found growth in a mixed media market, with India holding its ground even as parts of Asia Pacific and Africa lost momentum. The Paris-headquartered advertising and communications group reported third-quarter net revenue of €703 million, up 7.2 per cent year-on-year, as acquisitions and strong North American performance helped offset regional weakness.

Organic growth, which excludes the impact of acquisitions and currency movements, stood at 2.4 per cent in the July to September quarter, down from 3.8 per cent in the corresponding period last year. Acquisitions contributed 3.2 percentage points to net revenue growth, while favourable currency movements added 1.6 percentage points.

For the first nine months of 2026, net revenue rose 3.1 per cent year-on-year to €2.065 billion, with organic growth at 2.5 per cent against 2.8 per cent in the same period last year. Total revenue increased 6.3 per cent to €724 million in the third quarter, while nine-month revenue grew 2.4 per cent to €2.14 billion.

India remained a bright spot amid a difficult regional picture. Havas reported a 6.7 per cent organic contraction across Asia Pacific and Africa in the third quarter, with China and the Middle East weighing on performance. India continued to perform well during the quarter and remained positive over the first nine months.

The pressure has partly reflected geopolitical tensions in the Middle East. Havas said around half of the region’s 5.5 per cent organic decline over the first nine months was attributable to weaker activity in the Middle East, with the other half linked to China.

North America provided the strongest regional performance, delivering 7.5 per cent organic growth in the third quarter. Havas credited its Creative and Media divisions, which continued to benefit from client budget wins secured in the previous year.

Europe recorded 1.7 per cent organic growth, supported by France, particularly its Media business, as well as Spain and Poland. Latin America, by contrast, contracted 4.3 per cent, with weakness in Mexico and Peru offsetting strong performance in Brazil and Chile.

Beyond regional performance, artificial intelligence remains central to Havas’s strategy. The group is advancing Converged.AI, its operating system designed to bring together data, technology and AI to deliver marketing solutions across the customer journey. The strategy also includes integrating the group’s talent, expertise and services more closely while preparing employees for changes in the industry.

Yannick Bolloré, chairman and CEO of Havas, said the group remained focused on deploying Converged.AI, investing responsibly in AI and developing its talent. He also highlighted acquisitions as a way to strengthen the capabilities offered to clients and support growth.

Acquisitions have played a significant role in the group’s expansion. Havas completed eight majority-stake acquisitions in the first nine months of 2026, including Acento in Spain, Eyesight in France, Styleheads in Germany and Archrival in the United States. In July, it acquired Dutch sports marketing agency SportVibes, strengthening Havas Play’s capabilities across the Benelux region.

The group said its acquisition strategy typically involves eight to 10 deals annually, representing around €40 million to €50 million in annualised net revenue. It added that acquired businesses generally have profitability levels above the group average, supporting its margin profile.

Havas maintained its full-year 2026 guidance, targeting organic net revenue growth of 2 to 3 per cent and an adjusted earnings before interest and tax margin of 13.2 to 13.5 per cent. It also retained its expected dividend payout ratio of around 40 per cent.

For 2028, the group continues to target an adjusted EBIT margin of 14 to 15 per cent, alongside a dividend payout ratio of around 40 per cent.

Havas said it did not anticipate a significant change in market conditions during the fourth quarter, while continuing to monitor geopolitical risks and client activity. With acquisitions bolstering reported growth and India remaining positive despite regional headwinds, the group’s next challenge will be to sustain organic momentum while delivering on its AI and profitability targets.