First Quarter Results at Ipsos

Ipsos Group's revenues for first quarter 2003 came in at Euro 118.6 million, up 9.5% on the first quarter of 2002. At constant scope and exchange rate, the group's Q1 revenues rose by 8.6%, continuing to significantly outperform its market and main competitors.

Ipsos' first quarter revenue performance was driven by contrasting trends in terms of organic growth, changes to the scope of consolidation and exchange rates. The consolidation of companies acquired in 2002 generated 15% revenue growth. However, currency effects reduced these revenues by 14% when translated in euros. At constant exchange rates, Ipsos' revenues for the first quarter of 2003 were up 22% to Euro 134 million.

Over the quarter, most currencies showed much weaker average exchange rates against the euro compared with the first quarter of 2002. This was particularly apparent in Latin America (-43%), North America (-23% for US dollar and -13.5% for Canadian dollar) and the UK (-8.5%). This downtrend began in spring 2002, but has had only a very limited impact on the group's margins, as most of its operating expenses are also denominated in local currencies.

Results from the advertising research business back up the company's view that it has made sound strategic choices (namely specialising, organising these activities worldwide, partnering global clients and offering a consistent range of products and services in its different markets). Accordingly, Ipsos-ASI, the company that measures the effectiveness of advertising campaigns, achieved record growth, which is set to continue over the coming quarters.

Ipsos also posted a very strong revenue increase in marketing research and customer satisfaction measurement. The media research business returned to slightly positive growth, while opinion research suffered temporarily from an unfavourable basis of comparison, as revenues in early 2002 were boosted by the run-up to the French and Brazilian elections.

A geographical breakdown shows excellent performances being posted by North America and Latin America. Despite the persistence of a strongly unfavourable impact in exchange rates, both these regions combined still account for almost 50% of the group's overall revenues (41% from North America and 7% from Latin America). The performance reflects the synergies and streamlining efforts achieved in these two regions over the past few years, both in terms of business operations as well in as the active management of the product and client portfolio.

Europe has seen a steady start to the year. However, over the coming quarters, performance should improve more sharply than in 2002.

For the full-year 2003, Ipsos has confirmed its targets of at least 8% organic growth and an improved operating margin.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.