Ipsos Confident Following Q1 Revenue Rise

Ipsos says it is confident in its ability to return to 'significant and profitable growth' in 2010, after reporting a 14% rise in first quarter revenue to EUR 236.9m, compared with EUR 207.3m in the prior year period.

In Q1, Ipsos returned to organic growth, which reached 6% and put the firm ahead of the target of 3% to 5% it has set for the year as a whole. The firm said the overall figure was assisted by positive currency effects, while changes in the scope of its activities had contributed 6.4%, reflecting the consolidation of OTX, which it acquired back in January.

During the quarter, the firm noticed that clients had started to look forward, get their growth plans back on track and undertake 'ambitious research programmes', aimed in many cases at guiding their innovation policies but also to help control marketing expenditure.

Growth was reported across all markets, but was stronger in emerging markets than in the developed nations.

However, the firm specifically noted that with total growth of 26% and organic growth of 8% (EUR 76.7m), the performance in North America was exceptional, after what it describes as a 'difficult 2009'.

Latin America reported a total revenue increase of 20% and organic growth of 10% to EUR 26.3%; while Asia Pacific/Middle East saw organic growth jump 24% to EUR 27.4m.

In Europe, total revenue growth was just 3% to EUR 106.5m from EUR 103.0 in Q1 2009.

By business sector, the strongest performances came from advertising research (up 17%, or 9% organically, to EUR 52.4m) and marketing research (up 13%, or 8% organically, to EUR 102.8m).

Total Media research revenue increased 36.5% to EUR 25.3m, while Opinion and Social Research rose 4% to EUR 33.0m and Customer and Employee Relationship Management revenue was up 8% to EUR 23.4m.

In a statement, Ipsos said that the euro crisis, fuelled by growing investor awareness of the enormity of the European public sector debt demonstrates that the crisis is not over yet.

'The prevailing uncertainty makes it impossible to confirm that the rate of growth at Ipsos will be ahead of the targets the company set at the beginning of the year,' the firm added. 'We would, however, be disappointed if the company did not confirm the good figures for the first few months of the year over the remaining quarters.'

Web site: www.ipsos.com .