More Modest Q2, but Excellent First Half for Ipsos

Ipsos has reported second quarter revenue of EUR 574.0m, representing organic growth of 2.1% (reported growth 8.9%). After exceptional results in Q1, the group cited global events and the end of Covid measurement contracts - as well as strong comparatives from Q2 2021 - for the lower figures.

Excluding the effect of the ending of Covid testing contracts with some Western governments, Ipsos said Q2 organic growth would have been 7.7% - such contracts were maintained at least in part until March 31st this year.

First half performance overall was still impressive: organic growth of 6.9% for revenue of EUR 1,217.1m, and reported growth of 12.9%, of which 5.4% was due to currency effects. Adjusted net profit ['attributable to the owner of the parent'] rose 19.8% to EUR 98m in H1, compared with EUR 81m in the first half of 2021.





Regionally, the Americas were the best performer with H1 organic growth of 16%, driven ipsos says by its large TMT (Technology, Media and Telecommunications) clients and by the Ipsos.Digital platform. Asia Pacific fared well despite renewed lockdowns in China, the rest of the region growing fast for a total of 10% organic growth. Notwithstanding the effect of the war in Ukraine, EMEA would have seen solid organic growth (6%), the firm said, but for the end of Covid contracts; whereas with these factored in there was a slight organic decline in revenue (1%).



Breakdown of Service Lines by audience segment:
1- Brand Health Tracking, Creative Excellence, Innovation, Ipsos UU, Ipsos MMA, Market Strategy & Understanding, Observer (excl. public sector), Social Intelligence Analytics, Strategy3
2- Automotive & Mobility Development, Audience Measurement, Customer Experience, Channel Performance (including Retail Performance and Mystery Shopping), Media development, Capabilities
3- Public Affairs, Corporate Reputation
4- Pharma (quantitative and qualitative)

The group's largest segment, consumer research, performed strongly with first half organic growth of 14%. 'Citizens' social and government research declined by around 12% as Covid work dropped away - although research among 'Doctors and patients' grew 8% - Ipsos says this in part reflects societies' need to 'learn to live with Covid-19'. Excluding the effect of losing the Covid measurement work, the group says Citizens would have grown 23%.

The global group's workforce continues to grow: as of June 30th there were 19,503 permanent employees. Cash flow from operations improved to EUR 172m from EUR 150m a year earlier, and Ipsos says its order book is stronger than a year ago: it is 'confident in its ability to achieve organic growth of more than 5% this year and to reach a level of operating margin comparable to that of last year, reaching 12.9%'.

The results announcement concludes: 'Our market is near $90 billion and Ipsos has a small fraction of it. No competitor now offers the range and diversity of services, or the sectoral cover we now have, giving us room to flex and adapt to new needs of thousands of our clients for reliable information, and to take advantage of opportunities quickly. Our digitisation and automation strategy continues and helps improve our margins'.

Group home page: www.ipsos.com .