Daily Research News Online no. 8738 - Strong Organic Growth for Ipsos

Strong Organic Growth for Ipsos

August 13 2008

Ipsos has posted a 4.5% increase in revenue to Euros 462.8m for the first half of 2008, and organic growth of 8.4%. Four of the firm's business lines reported double-digit organic growth during the period.

The firm says this performance was shaped by a negative currency effect of 7%, and a positive consolidation effect of 3.1% from companies acquired since 1 July 2007 - including Monroe Mendelsohn, which now operates under the Ipsos Mendelsohn brand.

Second-quarter growth was 7.3%, which Ipsos says outperforms the market and its main competitors.

Ipsos reported robust growth in the developing countries. In Latin America, organic growth was strong, while in AsiaPac and Middle East growth was above 10% despite a weak first quarter.

In Europe, the firm's strong first-half performance was driven not only by Central and Eastern Europe, but also by momentum in the UK.

However, in North America Ipsos reported no growth in the first half. Revenues picked up in March and April before slumping again in May, and rising again in June and July. Despite this, the firm is 'convinced' that its North American activities will make a significant contribution to overall growth in the second half.

Four of the firm's business lines reported double-digit organic growth during the period, including Opinion and Social Research which saw an increase of 14% for the first half of the year.

Consolidated revenues by geographic area (millions of euros)	H1 2008	H1 2007	Change 2007/2006	Organic growth
Europe	236.0	218.1	8%	10%
North America	132.1	141.7	(7%)	1%
Latin America	49.2	42.3	16%	20%
Asia-Pacific/Middle East	45.5	41.0	11.0%	11.5%
First-half revenues	462.8	443.1	4.5%	8.4%

Ipsos says half year operating margin and net profit are in line with its full-year 2008 target. At the end of July, order books showed organic growth of more than 10%, supporting management's full-year target of at least 8% organic growth.

Consolidated revenues by business line (millions of euros)	H1 2008	H1 2007	Change 2008/2007	Organic growth
Advertising Research	102.4	101.6	1%	10%
Marketing Research	214.8	209.6	2.5%	6%*
Media Research	37.7	30.6	23%	10%*
Customer Relationship Management Research	44.6	42.3	5%	11%
Opinion & Social Research	63.3	59.0	7%	14%
First-half revenues	462.8	443.1	4.5%	8.4%

The Monroe Mendelsohn and Forward Research acquisitions in the US were included in the period, while consolidation from the joint venture in Indonesia and the acquisition of Latin-American company Livra will be included from July 2008.

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.