Daily Research News Online no. 14459 - Ipsos Makes the Most of 2011

Ipsos Makes the Most of 2011

October 26 2011

Ipsos - now the world's third largest market research company - has reported organic growth of 6.0% for the first nine months of the year, with revenue rising to EUR 845.8m. Growth slowed slightly in the third quarter and the firm is hunkering down for tough economic times ahead.

Reported 9-month growth was 4.1%, with currency effects off-setting organic growth. Third quarter revenue of EUR 287.6m represented a rise of 5.4% at constant scope and exchange rates, down from 6.2% in Q1 and 6.4% in Q2, which the firm says reflects 'a stabilisation in corporate research spending' as well as a very good third quarter in 2010.

Ipsos completed its £528.8m acquisition of Synovate just two weeks ago and none of the latter's figures are included in these accounts.

Today's results show a strong performance in emerging markets, which produced organic revenue growth of 15% and now constitute over a third of Ipsos' revenue - the Synovate buy should increase this further. Organic growth in developed countries was only 2%.

Looking at the firm's three regions, which overlap with the developed / emerging split, organic growth in EMEA was 3% (revenue EUR 370.7m), in the Americas 6.5% (EUR EUR 370.4m), and in Asia-Pacific 17% (EUR 104.7m).

Consolidated revenues by geographic area in millions of euros	2011 (9 months)	2010 (9 months)	Change 2011/2010	Organic growth
Europe, Middle East, Africa	370.7	362.4	+2%	+3%
Americas	370.4	361.6	+2.5%	+6.5%
Asia-Pacific	104.7	88.5	+18%	+17%
9-month total (at 30 September)	845.8	812.5	+4.1%	+6.0%

In terms of sectors, Media, Information & Technology Research grew 12% in the third quarter and Customer & Employee Relationship Management Research 17%.

Consolidated revenues by specialisation in millions of euros	2011 (9 months)	2010 (9 months)	Change 2011/2010	Organic growth
Advertising Research	182.1	180.8	+1%	+3%
Marketing Research	381.1	374.4	+2%	+7%
Media Research	100.0	81.4	+23%	+12%
Opinion & Social Research	89.6	96.2	-7%	-6%
Customer Relationship Management Research	93.0	79.7	+17%	+17%
9-month total (at 30 September)	845.8	812.5	+4.1%	+6.0%

Ipsos says the world situation and the acquisition of Synovate make forecasting complex and difficult and will have implications for growth in the near future, but the group does finish on a positive note: 'That said, this reduction in prospective growth does not call into question the objective of Ipsos (without Synovate) from reaching a record profit margin of at least 11% in 2011. Synovate on its own will report a positive operating profit for the final quarter of 2011.'

Detailed commentary can be found in the report, online at www.ipsos.com/sites/ipsos.com/files/Q3_2011_VA.pdf .

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