Modest Q1 Rise, Fall in Orders for Ipsos

Ipsos has posted first quarter revenue of EUR 428.7m, up 1.6% from the same period last year; but says its order book in the three weeks from March 30th has seen a significant fall.

First quarter figures include the positive effect (+0.8%) of two acquisitions, which cost Ipsos around EUR 12m: Maritz group's Mystery Shopping business, and survey technology provider ASKIA. In addition, exchange rate effects were also positive (+0.8%).

Overall for the business, profitability was down around 100 basis points year-on-year. The firm says there has been a 'significant fall' in orders with the twin effect of fewer new orders than last year and a substantial level of cancellations, suspensions and postponements. In weeks 14-16 of the year (beginning 30th March), new orders were down 10% on last year, whereas the net order book (new orders net of cancellations and postponements during the period) was at 40% of what it had been in the same weeks of 2019.

Performance by Region

Growth was strong in the Americas and more specifically in the US (+5%). However, it fell 10% in Asia Pacific, due to a 'very negative' performance in China (-25%) caused by the early lockdown.




Performance by Audience

Revenue from services targeted at specific groups, such as customers and employees was down 5%. Many companies in sectors heavily impacted by the pandemic - such as hotels chains and airlines - discontinued their research work because of lack of customers; and services involving consumer research were also hit. But equally, there were rises in public authorities and pharmaceutical firms.



Earlier this month, Ipsos announced a series of cost-saving measures to protect its margins, liquidity and ability to work with its customers, as a result of the Covid-19 pandemic. The firm says it is closely monitoring the speed of market recovery and type of demand - new or not - in countries that were never fully locked down, such as South Korea, or that are coming out of lockdown, such as China.

Ipsos, which is led by CEO Didier Truchot (pictured) and online at www.ipsos.com, will provide further updates after its next general shareholders' meeting on 28th May.