Havas, the parent company of pay-TV giant Canal Plus, has predicted 1993 results will show a 15% slide in profits compared to 1992.
Havas chairman Pierre Dauzier said year-end profits will be in the region of 700 million francs ($ 118 million), compared to $ 139 million for 1992.
Havas’ TV investments continue to pay dividends. Canal Plus, in which Havas has a 23.5% stake, will post 1993 profits of around $ 200 million, accounting for some 40% of Havas results.
On the downside, the continued slump in the advertising market has hit Havas’ stable of trade papers and ad billboards, while negotiations surrounding the contract of Havas’ advertising broker company, Information et Publicite, with Compagnie Luxembourgeoise de Telediffusion are believed to have hit Havas results by as much as $ 10 million.
Meanwhile, negotiations continue to rearrange Havas’ shareholder lineup. With waterworks services giant Generale des Eaux still expected to up its stake in Havas to around 20% — in return for allowing the latter to take control of 49% of Canal Plus — the search continues for new investors to balance Generale des Eaux’s position in Havas.