Daily Research News Online no. 19454 - Ipsos Q2 Revenues Drop

Ipsos Q2 Revenues Drop

July 23 2014

Ipsos has reported a 5.9% drop in first half revenue to EUR 756m, with currency effects responsible for most of the fall (5.1%). In organic terms, second quarter decline all but wiped out the modest gains of the first quarter, giving overall H1 organic growth of 0.1%.

The second quarter accounts for nearly 55% of total H1 revenue, according to Ipsos, and between April and June reported revenue fell 7.1% compared with the same period in 2013 - the first time since the Q1 2013 that Ipsos has reported a fall. Operating profit also fell around 20% to EUR 39.1m.

Consolidated revenues (In millions of Euros)	H1 2014	H1 2013	Change H1 2014 / 2013
Revenue	756.0	803.7	-5.9%
Gross profit	485.6	512.0	-5.2%
Gross margin	64.2%	63.7%	+50bp
Operating profit	39.1	49.0	-20.2%
Operating margin	5.2%	6.1%	-90bp

By business line, revenue grew in the Asia Pacific region; was more or less stable in Europe, the Middle East and Africa; and was described as 'very disappointing; in the Americas, where it shrank by 2.5%. In May and June, Ipsos' business levels were defined as 'mediocre' in both Latin America and the USA.

Revenue contributions by geographic area (in millions of Euros)	1st half 2014	1st half 2013	Change 2014 /2013	Organic Growth
Europe, Middle East and Africa	355.6	359.5	-1.1%	+1.5%
Americas	277.9	314.9	-11.8%	-2.5%
Asia-Pacific	122.5	129.3	-5.2%	+2.5%
First-half revenue	756.0	803.7	-5.9%	+0.1%

By business line, Ipsos MediaCT, which had lagged behind in the first quarter, recovered in the second, and finished the first half with revenue down 3.5%. Ipsos Loyalty enjoyed two consecutive good quarters, and Ipsos Public Affairs and Ipsos ASI saw a slight downturn at the end of the period.

Revenue contributions consolidated by business line (In millions of euros)	1st half 2014	1st half 2013	Change 2014 / 2013	Organic Growth
Advertising Research	120.3	131.6	-8.6%	0%
Marketing Research	390.6	420.2	-6.4%	-1%
Media Research	71.2	79.2	-10.1%	-3.5%
Opinion & Social Research	73.0	70.0	-0.1%	+3%
Customer and Employee Relationship Management	100.8	102.7	-1.8%	+5.5%
First-half revenue	756.0	803.7	-5.9%	+0.1%

In a statement, the company said: 'Over the next few months there should be no shortage of factors supporting growth. Despite the fact that volumes remain low, the new services Ipsos offers its clients are becoming an essential vector of support for our business and for strengthening client relations. Considering the trends of the first semester, we expect full year revenue to be stable or grow slightly at constant scope and exchange rate and an operating margin in line with 2013.'

Web site: www.ipsos.com .

You can review our reports of Ipsos' financials for the last six years here .

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