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Ipsos Reports 'Uneventful' Six Months

July 26 2017

Ipsos has reported what it has described as an 'uneventful' first-half year, with revenue of EUR 833.8m, almost unchanged from a year before, and organic growth of just 1 percent.

Ipsos Reports 'Uneventful' Six MonthsIpsos says slight positive currency effects (+0.5%) and negative scope effects (-0.6%) broadly cancelled one another out in the first half, leaving revenue flat. While adjusted net profit was up 9.0% to EUR 36m from EUR 33.0m, operating profit declined 5.7% to EUR 50.7m from EUR 53.8m in H1 2016. With regards to operating costs, payroll expenses rose 6%, with group headcount rising 1.5%, mainly in emerging countries, bringing the total permanent headcount to 16,845 at 30th June 2017.

Ipsos suggests flat revenue may have been caused by several issues, including clients' changing circumstances. Competitive pressures have affected CPG clients, driving down MR activity by 5% during the period, while clients from other sectors such as pharmaceuticals and financial services have increased spend 'significantly'. To achieve its 3% target for organic growth in 2017, Ipsos said its international CPG clients would have to regain their historical levels of activity in the second half of the year: should it decline further, growth will fall to between 1% and 2%.

By Region

The gap in growth between developed countries and emerging countries became significant again, according to Ipsos: turnover was down 1.3% and up 3.3% respectively. However there was variation within these categories: within emerging markets, Asia-Pacific and Eastern Europe drove growth while others such as the Middle East and Brazil were more 'difficult'. Likewise, within the developed markets, the UK maintained a high growth rate, while France was affected by a long electoral process.

Consolidated revenues by geographical area
(in millions of euros)
1st Half 2017
1st Half 2016
Change 2017/2016 Organic Growth
Europe, Middle East and Africa 360.4 360.0 0.1% 3%
Americas 318.5 330.4 -3.6% -5%
Asia-Pacific 154.9 143.1 8.2% 6%
Total revenues 833.8 833.6 0.0% 0.1%

By Business Line

Media and advertising research and marketing research revenues fell by 3% and 0.5% respectively, while in the opinion and social research arm they rose by 9%, and in client and employee relationship management by 1%.

Consolidated revenues by business line
(In millions of euros)
1st Half 2017 1st Half 2016 Change
Organic Growth
Media and Advertising Research 177.7 182.7 -2.8% -3%
Marketing Research 444.0 447.8 -0.9% -0.5%
Opinion & Social Research 92.5 85.8 7.8% 9%
Client and Employee Relationship
119.7 117.2 2.1% 1%
Total revenues 833.8 833.6 0.0% 0.1%

Summarising its optimistic outlook, the firm said: 'Ipsos operates in a growing market: the demand for information and analysis from companies and public institutions for better measurement and understanding of Society, markets and ultimately people, remains strong. It is also undergoing transformation as today, the combined use of new progress in human sciences, data sciences, technologies and know-how make it possible to better exploit information. It is by using the power of these sciences and technologies, but also the skills of its teams, that Ipsos is entering a new phase full of confidence: one where it can legitimately support its clients to achieve fair, clear, accessible and full understanding of their own markets'.

Web site: www.ipsos.com .
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