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Ipsos Profits Soar 30% to EUR 86.1m
Ipsos has reported a 19.5% increase in revenues to EUR 1,362.9m for the full year 2011 following its acquisition of Synovate last October, while net profit soared 30% to EUR 86.1m. For 2012, the firm is anticipating what it describes as 'a year of construction'.
The EUR 599.7m Synovate takeover formed the third largest market research company in the world. Without taking the acquisition into consideration, Ipsos' revenues increased by 4.6% on a like-for-like basis and at constant exchange rates.
During the year, the group generated an operating margin of 11.8%, an increase of 130 basis points relative to 2010. This was positively impacted by the consolidation of Synovate in the fourth quarter of the year, which contributed 80 basis points to this improvement.
Costs relating to the acquisition of Synovate came to around EUR 10m, while expenses resulting from its integration totalled around EUR 13m.
The Asia Pacific region led the way with revenues up 17% to EUR 199.7m. By business line, the public opinion sector continued to be affected by public spending cuts in certain countries, while the ad research business saw a slowdown in growth from the mid-year, which Ipsos says was mainly due to a reduction in the number of client initiatives.
During 2011, Ipsos also acquired TMG in Central America and Espace TV in France, as well as buying up minority stakes in certain emerging markets, particularly China. Acquisitions cost a total of EUR 616m.
Looking to 2012, Ipsos said in a statement that it plans to 'conquer' the marketplace for consumer insight services - ie, 'all services that enable organisations to make decisions on the basis of precise, relevant and understandable information'.
To support this ambition, the firm plans to focus on a number of priorities including introducing 'innovative methodologies' based on the use of technology such as social networking and mobile platforms, and attracting and retaining 'talented people'. With regard to the latter objective, Ipsos has doubled its staff training budget and put in place a bonus and share option scheme.
For 2012, Ipsos is aiming for positive organic growth of around 2%, with an operating margin (excluding non-recurring costs relating to the Synovate merger) of around 10%.
Web site: www.ipsos.com .
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