- David Gianatasio

BOSTON As it prepares to move forward with a streamlined agency operations structure, Paris-based Havas today reported a 25 percent rise in full-year 2008 net income to $130 million on a nearly 5 percent improvement in organic revenue to $1.97 billion, based on the current rate of exchange.

Today, Havas CEO Fernando Rodes Vila said of the company's strong '08 performance: "Despite a much weakened economic environment, our ability to adapt, our creativity, our media expertise, growth in our digital business and the balanced geographic spread of our revenues enabled us to achieve these results." (Click here for complete Havas financials.)

Tight cost controls plus healthy net new-business gains totaling more than $2 billion drove the spike.

Though the overall results were positive, Havas -- like most of its competitors -- did slow somewhat in the second half, posting organic revenue growth for the last six months of about 1.75 percent.

In announcing its numbers, Havas praised gains by its Euro RSCG and MPG networks, but mention of its other key holding, Boston-based Arnold, was noticeably absent. In fact, that shop's big win of '08 -- Carnival Cruise Lines -- was lumped under the results for Havas' "other agencies."

Adweek's preliminary estimates show that Arnold's revenue was basically flat last year at about $255-260 million, a disappointing performance given the holding company's overall gains.

As the economy continues to sputter and pressure in the marketplace grows, Arnold now faces a new reality. That agency and all Havas creative units -- including digital, design and marketing shops -- will report to Euro RSCG CEO David Jones as part of an umbrella group called Havas Worldwide. Those shops represent roughly 70 percent of Havas' annual global revenue. The other 30 percent comes from Havas Media, which includes MPG.
 
"The overall idea is to streamline processes even further. The heads of the other Havas creative agencies now report into David Jones. No one has been displaced from any leadership positions," said a rep for Euro RSCG. Jones adds the title CEO of Havas Worldwide and remains chief executive of Euro RSCG and director general of the Paris-based holding company. Fran Kelly remains CEO of Arnold. All agencies at this time retain their brand identities.

In addition, Havas has long sought to bolster its operations through an alliance with U.K.-based Aegis Group, the owner of media shop Carat, interactive agency Isobar and research group Synovate. Some sources viewed the realignment as a harbinger of more management and organizational changes to come.

Aegis was said to be mulling a divestiture of Synovate and a possible alliance with Havas following the ouster last November of Aegis CEO Robert Lerwill, who supported keeping the firm intact. Havas chairman Vincent Bollore is also the largest single investor in Aegis, and has tried unsuccessfully on numerous occasions to place his operatives on the company's board of directors.