Havas CEO Yannick Bolloré Is Helping Displaced Ukrainian Employees, Suspending Investments In Russia

He also explains the agency’s two-year recovery following its year-end earnings call

Havas Group announced its annual revenue today, with the numbers trending up by 10.8% at $2.735 million (2.341 million euros). Net revenue in 2021 was $2.615 million (2.238 million euros), up 9.2% compared to 2020, while organic growth in 2021 was up 10.4% from 2020. Fourth quarter numbers were also strong, as Havas Group boasted organic growth in net revenues up 9.3%.

“I remember at the end of 2020 when we made the budget for 2021, we expected to come back to 2019 numbers somewhere around 2022—we had a two- year recovery plan,” Yannick Bolloré, chairman and chief executive officer of the Havas Group, told Adweek. “And finally, month after month, we have seen a huge recovery in the industry…And I’m proud to say that today, not only we are coming back to 2019 numbers, but we are even, in terms of EBIT (earnings before interest and taxes), overachieving from 2019.”

Bolloré cited many factors in Havas’ growth, but noted that overall the marketing and ad business is booming globally for all networks. And while the outlook for 2022 is positive, he said the company is concerned with Russia’s invasion of Ukraine, which has displaced hundreds of Havas employees and led the company to end investments in Russia.

Helping Ukrainian employees

Bolloré said that as the company entered 2022, he sent a letter to his people and his clients stating three possible threats to the business, including two ongoing issues—inflation and supply chain problems. The third threat he raised at the time pointed to the geopolitical risks with Russia and China.

“But honestly, I didn’t expect what happened in Ukraine two weeks ago. It’s a big blow,” said Bolloré, noting that Havas has 250 people in Ukraine, as well as 620 employees in a video game company called Gameloft which is located in the besieged city of Kharkiv. The Gameloft building was bombed, and although its people got out safely, they have been displaced.

“After two years of the pandemic, dealing with illness and sadness, now we have to deal with something even worse, which is war. And honestly, I had zero experience dealing with war, so it’s quite new,” he said.

Havas and parent company Vivendi, Bolloré said, has been very supportive of its people, and has given extra money to make sure they can relocate. “The act of solidarity and generosity has really moved me,” Bolloré stated, noting that it’s also difficult because other than providing financial support, there’s not much that Havas can do from outside the country.

In a business and humanitarian sense, the coming weeks could have real repercussions, Bolloré said, because when something like this starts, you don’t know where it ends, which is why Havas is taking everything day by day and hoping for the best outcome.

Havas also has dealings in Russia and Belarus, but Bolloré said that Havas doesn’t operate directly in Russia—it works instead through a local independent group that serves international clients. Therefore, Havas didn’t have to make the difficult decision that WPP made by ceasing operations there. Havas had been working on an investment in Russia; Bolloré said they have suspended until—and if—a peaceful resolution can be reached.

Where Havas has fared well

For Havas, he praised the group for its servicing of clients during the pandemic, launching new initiatives and offerings and on-boarding new clients, and noted the rapid growth of its Havas Health & You and Havas Media divisions. Some of those new 50-plus client wins included Beam Suntory, Polaris, Estée Lauder, Land O’Lakes and Cox Communications.

Havas agencies that fared very well in 2021 included Battery, with revenue growth of 700% in Q4 behind five competitive pitch wins; Camp + King with new business wins, organic growth and the creation of new revenue streams; Arnold, which grew by 66% and won eight pieces of business; and Havas New York, which won three out of four pitches in the final round and became B Corp Certified.

New services added included Havas AFK (away from keyboard), which integrates brands away from keyboard and into gaming culture; the Havas Social Center, that places social specialists side by side with clients to analyze, concept and create social work; and the newly launched Havas Studios, connected content studios built on technology. The group also expanded its Havas CX capabilities, a network committed to delivering meaningful brand experiences across the entire customer journey.

In 2020, Havas launched its Havas Market, an ecommerce offering that Bolloré calls a “fully aligned expertise to share best practices around the world” to help clients navigate the ecommerce world.

Bolloré also stated that during the pandemic, Havas kept its leadership intact. “We have the exact same executive committees as before the pandemic, and everybody has been working really well and efficiently, even if we were all in different locations,” he said. The network also had over 340 new hires with 22 new executives in 2021.

Havas Group acquired four majority stakes in 2021: BLKJ, a Singapore-based creative agency; Agence Verte, CSR communications in France; Nohup, a customer experience company in Italy; and Raison de Santé, a healthcare communications agency in France.

A continued commitment to DEI and the planet

Havas has made ongoing commitments to DEI and climate change, and those continued in 2021. Bolloré said that making those commitments came naturally to him, since as an “old millennial,” he and those of his generation have a natural sensitivity to those subjects.

“When I was appointed CEO of Havas, it was back in 2013, I was 33 years old…so it was easy, because it felt completely natural for me that the company should tackle bigger societal issues such as climate change or diversity and inclusion. So, we have been putting in place lots of program during the past nine years… it’s something that is really part of our DNA,” said Bolloré.

That commitment extends to the clients Havas works with, and Bolloré said that he doesn’t interact with any clients that don’t talk about how they can be more meaningful in order to thrive as a business. He noted Havas’ “Meaningful Index” and its Meaningful Brands Survey as proof of concept.