Ipsos Q1 Revenues Down 5.3% in Q1

Ipsos has reported a 5.3% drop in first quarter revenues to EUR 359.6m, which equates to a 2.7% drop at constant scope and exchange rates. The firm says these figures reflect a decrease in commercial activity in the final quarter of 2012.

However, between January and March 2013, new business sales rose by 2%, which Ipsos claims is in line with its plan to generate higher revenues in 2013 than in 2012.

By region, a decrease in revenues was reported in all areas apart from South East Asia, the Middle East and Latin America, and across all business lines except Ipsos MediaCT. For the EMEA region, revenues were down 4.8% to EUR 167.8m, the Americas saw a 4% decline to EUR 134.4m, and Asia Pacific revenues dropped 9.9% to EUR 57.4m.

All business lines witnessed a decline during the quarter - Advertising Research revenues fell 2.7% to EUR 59.4m, Marketing Research dropped 6.5% to EUR 184.1m, Media Research was down 5.4% to 35.3m, Opinion and Social Research fell 6.5% to 35.3m, and Customer and Employee Relationship Management declined 5.3% to EUR 359.6m.

Ipsos says these figures can be attributed to its clients 'controlling their profitable growth with tight management of their innovation policies', which has resulted in them committing a stable or shrinking share of their revenues to their marketing budgets. Two months ago, the global group reported 2012 revenues of EUR 1.8bn, a disappointing result after the addition of Synovate's business the previous year - and put the blame on politicians, the integration process and competitor poaching of senior staff.

For 2013, Ipsos says that its own growth will be driven by a number of initiatives, such as the phased introduction of a single global platform for the collection and processing of data, the extension of the use of mobile handsets to reach respondents, and the simplification of survey protocols to enable the firm to produce and distribute information faster and more clearly. Other initiatives reflect the company's plans to extend the range of its services to the analysis and use of social networks, and to the active and passive measurement of content and digital channels.

The firm confirms its forecast of 'above-market growth' in 2013, with operating margin 100 basis points higher at 11%.

Web site: www.ipsos.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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