Daily Research News Online no. 21217 - Weak Euro Covers Flat Half Year for Ipsos

Weak Euro Covers Flat Half Year for Ipsos

July 23 2015

Ipsos has reported half-year revenues up 10.2% in Euros to EUR 832.9m. Given that the Euro has lost around 20% of its value against the dollar and 10% against the pound in the last 12 months, this equates to a real-terms decline of -0.4%. Profit measures showed a slight improvement.

Ipsos results mixed... In total, the group generated operating profit of EUR 46.8m, representing 5.6% of revenue, up slightly compared to last year. The firm says that changes in the scope of business activity have had a negligible effect on its results.

Financial Performance (in millions of euros)	H1 2015	H1 2014	Change H1 2015 / H1 2014
Revenue	832.9	756.0	+10.2%
Gross profit	536.4	485.6	+10.4%
Gross margin	64.4%	64.2%	+20 pb
Operating profit	46.8	39.1	+19.7%
Operating margin	5.6%	5.2%	+40 pb
Total of exceptional, non-recurring items	(11.2)	(7.9)	+6.8%
Finance charge	(12.1)	(11.8)	+2.4%
Tax	(4.5)	(4.2)	-
Adjusted net profit (attributable to the Group)	30.5	26.1	+16.9%

By geographical region, Ipsos said revenue increased in developed markets, especially in the US, the UK, Germany and Japan, while revenue in emerging markets fell by 2%. The EMEA (Europe, Middle East, Africa) region grew slightly, despite difficulties in Russia and the Middle East, thanks to 'strong performances' in the UK and in Africa. However, in certain markets across Asia-Pacific, in particular in China, Ipsos has decided to withdraw from some large-volume contracts that have generated recurring losses.

Consolidated revenues by geographical area (in millions of euros)	1st Half 2015	1st Half 2014	Change 2015/2014	Organic Growth
Europe, Middle East and Africa	369.5	355.6	3.9%	0.5%
Americas	326.4	277.9	17.5%	0%
Asia-Pacific	137.0	122.5	11.8%	-3.5%
Total	832.9	756.0	10.2%	-0.4%

By business line, both Ipsos Connect and Ipsos Loyalty have seen a decline in revenue - with the former described as 'short-term' following the division's recent overhaul. Ipsos Marketing has reported 'slightly better' half year results, and the firm says its Public Affairs division continues to occupy a 'strong position' in the marketplace - in particular in the UK, Canada, Australia, France and Mexico.

Consolidated revenues by business line (In millions of euros)	1st Half 2015	1st Half 2014	Change 2015/2014	Organic Growth
Media and Advertising Research	193.3	191.5	1.0%	-6%
Marketing Research	446.5	390.7	14.3%	1.5%
Opinion & Social Research	86.6	73.0	18.6%	8%
Client and Employee Relationship Management	106.5	100.8	5.6%	-2.5%
Total	832.9	756.0	10.2%	-0.4%

In a statement, the company said: 'The year is far from over. We believe that we will, as a minimum, reach our forecasts in developed markets. If we are able, which is currently not assured, to reduce the gap between the level of activity seen in developing countries and the budgeted level of activity, we will achieve our internal growth target. Ipsos' teams are ready and motivated to improve results in the second half of the year, whilst being aware that the environment in which they are working remains volatile and uncertain'.

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.