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The three key acquisitions made by Havas Worldwide India Private Limited contributed to a stellar rise in the network’s operational revenues and profits in CY 2020, as reflected in the company’s financial statements. The operational revenue grew nearly threefold to reach Rs 106.12 crores as compared to Rs 35.63 crores in 2019. The total profit for the period amounted to Rs 55.28 lakh as compared to losses amounting to Rs 4.20 crores in 2019.
Havas had acquired a 61.22% share in full-service digital agency Langoor in September 2019, 63% share in experiential agency Shobiz in December 2019, and 98% share in Brood Creative LLP in June 2020. Additionally, the network had also acquired UX design firm Think Design in May 2019. While the consolidated statements of 2019 had contributions from these firms only for the quarters after their acquisition, the 2020 statements have seen a major push to the numbers because of their individual performances.
The network’s expenses for obtaining control of subsidiaries or other businesses were Rs 8.80 crores in 2020 and Rs 41.57 crores in 2019 respectively. Because of Shobiz, the revenue from operations for event management stood at Rs 60.06 crores in 2020. The creative and retainer revenues jumped by 7.51% to touch Rs 28.10 crore and digital revenues spiked by 159.67% to reach Rs 17.96 crores in 2020.
Some of the key accounts won by Havas in 2020 included ACC, ICICI Securities, DeBeers, Forevermark, and Dr Reddy’s. Globally, Havas Group’s revenues for 2020 fell by 10.1% to reach €2,137 million (approximately Rs 18,203 crores), compared to 2019. Net revenues were €2,049 million (approximately Rs 17,453 crores), down 9.2% compared to 2019 and organic growth was -9.9% compared to 2019. Exchange rates had a negative impact of -1.4% (+2.5% in 2019) and acquisitions contributed +2.1%.
The e4m team reached out to Havas Worldwide India Private Limited for their statement on the above news story. However, the company refused to comment.