Daily Research News Online no. 22994 - Ipsos Reports First Half Organic Growth

Ipsos Reports First Half Organic Growth

July 26 2016

Ipsos has reported first half 2016 revenue of EUR 833.6m, equivalent to 3 percent organic growth once currency effects are excluded. The result is an improvement after a flat 2015.

During the period, all geographic regions experienced growth, including emerging markets which grew by 4.4% on average.

Consolidated revenues by geographic area (In millions of Euros)	1st half 2016 EUR	1st half 2015 EUR	Change 2016/2015	Organic growth
Europe, Middle East and Africa	360.0	369.7	-2.6%	1.5%
Americas	330.4	326.2	1.3%	3%
Asia-Pacific	143.1	137.0	4.5%	8%
First-half Revenues	833.6	832.9	0.1%	3.3%

Similarly, all business lines improved their performance compared with the previous period. Marketing research grew 4%, opinion research was up 4%, and services dedicated to customer relationship management rose 7% - which Ipsos describes as a 'record half-year improvement' for a business line since 2011. The Ipsos Connect business, focused on advertising content, digital and traditional media channels, had a 'difficult' start its first year of existence, with a 6.5% fall in revenue; but in the first half of 2016 has improved to what the group describes as 'almost stable', with organic growth of -1%.

Consolidated revenues by business line (In millions of euros)	1st half 2016 EUR	1st half 2015 EUR	Change 2016/2015	Organic growth
Media and Advertising Research	182.7	193.3	-5.5%	-1%
Marketing Research	447.8	446.5	0.3%	4%
Opinion & Social Research	85.8	86.6	-0.8%	4%
Client and Employee Relationship Management	117.2	106.5	10.0%	7%
First-half Revenues	833.6	832.9	0.1%	3.3%

Overall for the company, Ipsos reported gross profit growth of 0.1% to EUR 545.0m, from EUR 536.4m in the prior year period. The firm says gross margin growth was driven by both the digitalisation of data collection and growth in new services.

(in millions of euros)	1st half 2016 EUR	1st half 2015 EUR	Change 1st half 2016 / 1st half 2015
Revenue	833.6	832.9	0.1%
Gross profit	545.0	536.4	1.6%
Gross margin	65.4%	64.4%	-
Operating profit	53.8	46.8	14.9%
Operating margin	6.5%	5.6%	-
Total of exceptional, non-recurring items	8.7	(11.2)	-
Finance charge	(10.2)	(12.1)	-
Tax	(12.4)	(4.5)	-
Adjusted net profit * (attributable to the Group)	33.0	30.5	8.2%
* Adjusted net profit is calculated before non-cash items linked to IFRS 2 (share-based payments), amortisation of acquisition-related intangible assets (client relationships), deferred tax liabilities related to goodwill on which amortisation is tax-deductible in certain countries and the impact net of tax of other non-recurring income and expenses.

Ipsos says its outlook must be seen in the context of the complex macro environment in which companies operate, but notes that if this does not deteriorate further, 2016 will be a good year, its 'best since 2011'. The statement continues: 'It will be marked by several achievements in terms of market gains, an upswing from new services, strengthening the teams and a good cash flow generation. Lastly, the operating margin will be stable, at the same level as in 2015, after an additional EUR 10m in operating costs for the 'New Way' programme and a more aggressive variable compensation scheme'.

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.