Havas posts €1.35 billion revenue in H1, organic growth at 2.3%

Havas Group reported solid financial results for the first half of 2025, driven by improved organic revenue growth and a rise in adjusted earnings. The group recorded a net revenue of €1,346 million, marking a 2.9% year-on-year increase, supported by organic growth of 2.3%. Adjusted EBIT rose 8.3% to €144 million, with a 50-basis point improvement in margin to 10.7%.

Organic growth accelerated in the second quarter to 2.6%, up from 2.1% in the first quarter. The group reaffirmed its full-year 2025 guidance, maintaining expectations for organic growth above 2.0% and an adjusted EBIT margin between 12.5% and 13.5%.

Regional performance varied, with North America leading at 3.9% organic growth for the half year, supported by double-digit growth in the Havas Health division. Europe reported modest growth of 1.3%, helped by stronger second-quarter performance in France and the UK. Latin America continued its upward trend with 8.6% organic growth, while APAC and Africa saw a 1.8% decline due to reduced client activity in China.

By business line, Havas Creative contributed 41% of net revenue, followed by Havas Media (36%) and Havas Health (23%).

Personnel costs increased 1.6% compared to the previous year, remaining below the growth in net revenue. Net income attributable to the group stood at €74 million, up from €71 million in the first half of 2024.

Operating cash flow before working capital reached €117 million, while the change in working capital remained negative at €183 million. Capital expenditure held steady at €15 million. Financial investments declined to €25 million from €76 million the previous year. Dividends paid to shareholders totalled €84 million.

Havas’ net cash position was negative €79 million as of 30 June, compared to a positive €124 million at the same point in 2024. Gross debt totalled €430 million, with liquidity available at €1.2 billion.

The group continued its M&A activity, completing five acquisitions across North America, Europe, and Latin America, including agencies in healthcare, retail media, and CRM. Strategic partnerships were also expanded, notably with Ostro and YouGov.

AI integration remains central to Havas’ transformation strategy, with the launch of Converged.AI marking a key milestone. The platform, which integrates AI into content personalisation, targeting, and production, is part of a €400 million investment plan running through 2027.

Creative achievements included 39 Lions at the 2025 Cannes Lions, with Grand Prix wins for Havas Paris and Havas Play. Havas India secured its first Gold Lion for the 'Ink of Democracy' campaign.

The company launched a share buyback programme in June, allocating up to €50 million. As of 30 June, 2.6 million shares had been repurchased at an average price of €1.5028 per share.

Havas also confirmed plans for a reverse share split, consolidating 10 existing shares into one, without altering the share capital. The change will be implemented in the autumn of 2025.

Looking ahead, Havas cited ongoing geopolitical and macroeconomic uncertainties but expressed confidence in achieving its 2025 and 2028 financial targets. The group maintained its medium-term guidance for an adjusted EBIT margin of 14.0% to 15.0% and a dividend payout ratio of approximately 40%.