Daily Research News Online no. 17632 - Ipsos Revenue Levels Off in Q2

Ipsos Revenue Levels Off in Q2

July 25 2013

Following a 2.7% fall in first quarter revenue, Ipsos has reported a 0.4% rise in its second quarter figures. However, negative currency effects meant that total first half 2013 revenues fell by 4% to EUR 803.7m.

Ipsos Revenue is down for first half of 2013
Performance by region

Second quarter sales improved strongly in Europe, the Middle East and Africa, and in the Americas. However, the business remained 'sluggish' in the Asia-Pacific region, which Ipsos says reflects the 'snags' encountered in the Ipsos/Synovate integration process - a region where the firm's size doubled following the acquisition.

Consolidated revenues by region (in millions of euros)	1st half 2013	1st half 2012	Change 2013 / 2012	Organic Growth
Europe, Middle East and Africa	359.5	371.0	-3.1%	-1.0%
Americas	314.9	323.1	-2.5%	+0.8%
Asia-Pacific	129.3	142.9	-9.5%	-5.0%
First-half revenues	803.7	837.0	-4.0%	-0.95%

Revenues by business line

Ipsos Marketing swung from a drop of 3.5% in the first quarter to almost flat in the second, while at Ipsos MediaCT growth was 3% in the first half. In the Opinion & Social Research division, revenue fell 7.5% during the first half, but Ipsos says things are about to improve, following several large-scale contract wins in the last weeks of the period.

Consolidated revenues by business line (In millions of euros)	1st half 2013	1st half 2012	Change 2013 / 2012	Organic Growth
Advertising Research	131.6	136.5	-3.6%	-1.0%
Marketing Research	420.2	427.6	-1.7%	-0.45%
Media Research	79.2	86.4	-8.4%	+3.0%
Opinion & Social Research	70.0	80.6	-13.2%	-7.5%
Customer Relationship / Management Research	102.7	105.8	-3.0%	-1.5%
First-half revenues	803.7	837.0	-4.0%	-0.95%

With regard to the remainder of the year, Deputy CEO and group CFO Laurence Stoclet comments: 'It is very likely that Ipsos' revenue will show a significant increase in the second half of 2013. Overall, Ipsos should resume organic growth despite the uncertain macroeconomic situation and constrained market, with our performance gradually improving each quarter.'

In today's financial statement, Ipsos also referred to its legal dispute with former Synovate parent Aegis, over claims that the marcoms giant failed to disclose tax and fraud probes at Synovate, before it sold the company for £525m ($792m). As a result, Ipsos is seeking up to £65.8m ($100m) in compensation from Aegis. Stoclet said that the suit had been filed 'to make sure the company's rights and interests are respected'. Aegis denies the allegations.

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.