Daily Research News Online no. 9712 - Ipsos Posts 7.8% Organic Growth

Ipsos Posts 7.8% Organic Growth

March 18 2009

Ipsos has posted organic growth of 7.8% and operating margin up 8.2% for 2008, despite a financial crisis which it describes as 'unprecedented in its scale since the modern economy took shape'.

For the year, revenue was up 5.6% to EUR 979.3m from EUR 927.2m, while gross profit climbed 7.3% to EUR 602.5m from EUR 561.5m and gross margin rose 61.5% from 60.6% last year.

Net profit attributable to the group posted a significant improvement of 10.8% to EUR 51.5m (2007: EUR 46.5m), with adjusted net profit up 7.4% to EUR 61.0m (2007: EUR 56.9m). Adjusted earnings per share came to EUR 1.90.

Healthy cash generation over the 12-month period helped to finance EUR 70m in acquisitions, including two US companies Forward Research (marketing research) and Monroe Mendelsohn (media research), as well as Livra (online research) and Alfacom (loyalty research) in Latin America, B-Thinking in China and Strategic Puls in the Balkans.

In addition, during 2008, Ipsos posted a non-recurring gain of £1m following the WPP group's decision not to sell TNS' TV audience metrics assets.

Conversely, the firm shelled out EUR 1.4m in legal fees linked to the conclusion of a dispute between itself and Arbitron.

Ipsos said in a statement that the first few months of 2009 had been turbulent, and a number of research programmes have been pruned back, postponed or even cancelled. However, the firm believes it is well-protected against these negative trends owing to its global presence, and clients' desire to work with a limited number of suppliers.

For 2009, Ipsos forecasts organic growth below its historic average but above the market average. Its operating margin is expected to hold up, which the group says will protect its ability to continue to develop its range of products and services and to manage its client relationships.

Today the firm announced the acquisition of Punto de Vista in Chile.

Web site: www.ipsos.com .