Havas FY net down 22 pct on lower opg profit, higher tax charge UPDATE |
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Thu, 05 Apr 2007 17:52
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(Updates with detail on operating profit, quotes from press release)PARIS (AFX) - Advertising group Havas reported a 2006 net profit of 46 mln eur, down 22 pct on the 59 mln eur posted in 2005, reflecting a fall in operating profit and a higher tax charge.The net profit was below the 61 mln eur consensus compiled by Thomson Firstcall, although individual estimates ranged widely from 44 to 87 mln.Havas stressed the impact of an increased tax expense -- 25 mln eur compared with 14 mln a year earlier -- adding that pretax profit was 'virtually stable' at 83 mln eur.Operating profit was 121 mln eur, a 5 pct decline on the 2005 figure of 128 mln, which Havas said was 'severely affected' by 18 mln eur in goodwill and restructuring charges.This gave an operating margin of 8.2 pct, down from 8.8 pct in the previous year.Operating profit before special expenses and income was 12 pct lower at 140 mln, with Havas citing the impact of are cruitment and reinforcing of New Business staff'.The group also highlighted its 'optimised international organisation' thanks notably to the bringing together of all its MPG media agencies under the 'Havas Media' brand.Havas had previously reported a 0.8 pct rise in full-year revenue to 1.472 bln eur, its first rise since 2001, together with net new business of 1.931 bln eur.Havas reiterated that it was ranked number one for new business for 2006 in a widely known industry survey carried out by analysts at Lehman Brothers.The company said it will propose a dividend of 0.03 eur per share, the same amount as for 2005.It did not provide an outlook for this year in its press release.paris@afxnews.comgt/tw/gt/jsaCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Havas FY net down 22 pct on lower opg profit, higher tax charge 