Daily Research News Online no. 13185 - Ipsos Break the Billion Barrier in 2010

Ipsos Break the Billion Barrier in 2010

February 23 2011

Ipsos has reported a 20.9% increase in 2010 revenues to EUR 1,140.8m, compared with EUR 943m the previous year, while for the period, net profit climbed 25.7% to EUR 66.2m.

During the year, Ipsos generated 14% organic growth (which now accounts for more than 30% of total revenues), but says this has been slowed by the consolidation of the US company OTX into its accounts as of 1 January 2010.

All regions contributed to Ipsos' revenue growth, with Europe and North America having nearly made up the declines of 2009. Latin America increased, despite its stagnation the previous year, and Asia-Pacific/Middle East was the most active region.

Contribution by geographic area (In millions of euros)	2010	2009	Change 2010/2009	Of which Organic growth	Breakdown 2010
Europe	472.2	435.8	8.4%	4%	41%
North America	362.9	270.7	34.1%	8%	32%
Latin America	148.5	119.2	24.5%	13%	13%
Asia-Pacific and Middle East	157.3	118.0	33.4%	21%	14%
Full-year revenues	1,140.8	943.7	20.9%	8.3%	100%

In terms of Ipsos' business lines, the firm suffered following the consequences of the spending cuts implemented by the British government. These budget cuts to UK public policy evaluation programmes cost Ipsos MORI one percentage point of organic growth in 2010, and the impact is expected to knock another 1.5 percentage points off organic growth in 2011. However, Ipsos says that its Opinion & Social Research business generated growth in all other regions.

Contribution by business line (In millions of euros)	2010	2009	Change 2010/2009	Of which Organic growth	Breakdown 2010
Advertising Research	252.6	203.2	24.4%	11%	22%
Marketing Research	529.6	451.9	17.2%	11%	47%
Media Research	115.6	72.4	59.6%	7%	10%
Opinion and Social Research	128.1	117.9	8.6%	-6.5%	11%
Customer Satisfaction Research	114.9	98.3	16.8%	10%	10%
Full-year revenues	1,140.8	943.7	20.9%	8.3%	100%

For 2011, Ipsos plans to focus on hiring staff to enhance quality of client service - particularly in the digital technology/social networking sphere. To this end, the Board has just approved a rise in staff target-led bonuses, while also agreeing to maintain free share award plans tied to individual performance.

The company says that acquisitions will continue to serve as a 'fundamental source' of growth during 2011, and it plans to create or acquire companies in emerging countries by the end of the year.

In a statement, Ipsos said: 'The research market is expected to grow by 5% or more in 2011, and Ipsos plans to expand at a faster pace and to lift its operating margin to at least 11%. Now is the time for growth.'

Web site: www.ipsos.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.