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Ipsos Rolls on Amid Gloom
Despite painting a grim picture of an unfolding 'financial, economic and ideological crisis' around the globe, Ipsos has reported Q3 revenues of Euros 234.2m, a 5.9% increase compared with Q3 2007. Organic revenue growth was 8.2%.
In the first nine months of the year, Ipsos generated revenues of EUR 697m, up 4.9% from EUR 664.2m in the year-earlier period. Organic growth of 8.3% was boosted 3.3% by the effects of consolidation - resulting from the integration of Forward Research, Monroe Mendelsohn, Livra, B-Thinking, and Alfaco; but the reported figure is 6.8% lower due to adverse currency effects.
On the back of these results, the firm is maintaining its targets for the full-year and forecasting organic growth of at least 8%.
Results by Geographical Area
Growth remained very strong in developing countries, and moderate to weak in North America, Western Europe and Japan.
Consolidated revenues
by geographic area
(millions of euros) | 2008 (9 months) | 2007 (9 months) | Change 2008/2007 | Organic growth |
|---|
| Europe | 344.6 | 319.9 | 8% | 10% | | North America | 199.9 | 212.5 | (6%) | 1% | | Latin America | 81.1 | 67.7 | 20% | 20.5% | | Asia-Pacific / Middle East | 71.4 | 64.1 | 11% | 11% | | 9-month total (at 30 September) | 697.0 | 664.2 | 4.9% | 8.3% |
Results by Business Line
In advertising effectiveness measurement, the pace of growth slowed, mainly because of a shift to online data collection. However, Ipsos MediaCT - which specialises in media measurement and the analysis of convergence between traditional and new media - saw revenues climb 16% in organic terms. The creation of this division involved the transfer of about EUR 20m of annual revenues from the Ipsos Marketing division to Ipsos MediaCT.
Consolidated revenues
by business line
(millions of euros) | 2008 (9 months) | 2007 (9 months) | Change 2008/2007 | Organic Growth | | Advertising Research | 150.7 | 149.1 | 1% | 7% | | Marketing Research | 327.9 | 312. | 8.5% | 6% | | Media Research | 56.8 | 47.1 | 21% | 16% | | Opinion & Social Research | 92.4 | 90.2 | 2% | 12% | Customer Relationship
Management Research | 69.1 | 65.0 | 6% | 10% | | 9-month total (at 30 September) | 697.0 | 664.2 | 4.9% | 8.3% | |
Outlook for 2008 and 2009
Striking a somewhat apocalyptic tone, Ipsos says it believes that 'the world is seeing the beginnings of a financial, economic and ideological crisis the like of which has not been seen since the end of World War II'. However, it says it believes it can maintain its growth in 2009 and beyond, although growth may be slower than in the past. The firm is forecasting organic growth of at least 8% and an improvement in operating margin and net profit.
For 2009, Ipsos expects organic growth to be well above the market rate, while operating profit should rise at least as much as its revenues.
Shares were up 3.41% to EUR 19.11 this afternoon.
Web site: www.ipsos.com .
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