Daily Research News Online no. 19002 - Slow Organic Growth for Ipsos

Slow Organic Growth for Ipsos

April 23 2014

Ipsos has reported a 4.5% drop in revenue to EUR 343.3m in the first quarter of 2014, compared with EUR 359.6m a year previously. However organic growth - at constant scope and exchange rates - was 1.5%, in line with the performances recorded in the third and fourth quarters of 2013.

Slow Organic Growth for Ipsos During the quarter, currency fluctuations, which Ipsos had indicated would have an impact on the company's financial statements at least in the first half of the year, reduced business volumes in euro terms by 5.5%.

Consolidated revenues (In millions of Euros)	2014	2013	2012
First quarter	343.3	359.6	379.9
Second quarter	-	444.1	457.1
Third quarter	-	418.6	440.6
Fourth quarter	-	490.1	512.0
Full year	-	1, 712.4	1, 789.5

Ipsos says growth in emerging markets was 5.5% - at constant scope and exchange rates - while it remained slightly negative (at -0.5%) in developed markets due to the 'continuing delicate situations' in the eurozone and Japan.

Consolidated revenues by geographic area (in millions of Euros)	1st quarter 2014	1st quarter 2013	Year-on-year change	Organic Growth
Europe, Middle East and Africa	165.7	167.8	-1.2%	1.5%
Americas	124.7	134.4	-7.2%	2%
Asia-Pacific	52.9	57.4	-7.9%	0%
Quarterly revenues	343.3	359.6	-4.5%	1.5%

Looking at result for each business line, Ipsos described the underperformance of its media research division MediaCT as an 'artefact', relating to the stages reached on a certain number of major contracts. Apart from this, performance across all Ipsos specialisations was described as 'in line' with their business plans.

Consolidated revenues by business line (In millions of Euros)	1st quarter 2014	1st quarter 2013	Year-on-year change	Organic Growth
Advertising Research	55.7	59.4	-6.2%	1%
Marketing Research	177.9	184.1	-3.4%	2%
Media Research	30.0	35.3	-15.1%	-9%
Opinion & Social Research	35.4	35.3	0.3%	4%
Customer and Employee Relationship Management	44.3	45.5	-2.6%	4.5%
Quarterly revenues	343.3	359.6	-4.5%	1.5%

New services such as mobile research, neuroscience, web listening, and the activation of communities accounted for 5.4% of Ipsos' revenue in 2013; a figure which the firm predicts will climb to at least 7% in 2014 and 10% in 2015.

For 2014, Ipsos is anticipating organic growth of at least 3% and an increase in operating margin. The group will publish its first-half results on 23rd July.

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.