Negative Currency Impacts Ipsos Third Quarter

Ipsos has announced a 5% drop in third quarter revenues to EUR 418m (Q2 2012: EUR 440m) - the result of a 6.8% negative currency effect. The decline was partly offset by 1.8% organic growth during the period.

In the first nine months of 2013, Ipsos' revenues fell 4.3% to EUR 1.22 billion, which it said was mainly due to a 3.8% negative currency effect caused by a rise in the euro's value relative to most of the currencies in which the firm bills its services. The decline also reflects a negative 'scope' effect of 0.5% arising from partial withdrawals from countries such as Portugal and Greece, and the sale of LA-based film script evaluation business Motion Picture Group to its management.

During the third quarter, the EMEA region, where revenues fell 1% in the first half of the year, returned to organic growth, supported by developing countries like Turkey and Russia, 'strong momentum' in Africa, and 'improved' performance in the UK. Q3 revenues in the Americas region were affected by economic uncertainty in Latin American countries, while performance in North America was described as 'relatively stable'. Asia Pacific revenues in the first nine months show an organic decline of 2%.



By business line, Ipsos noted a 'greater consistency' in the performance of divisions that were already performing well, such as Media CT, and those that were struggling or 'significantly underperforming' such as opinion and social research division Ipsos Public Affairs.



In a statement, Ipsos commented on the damage caused by the re-valuation of the Euro, although the company described the impact as 'manageable' given that its revenues and costs are denominated largely in the currencies of the countries in which the company operates.

For the fourth quarter, Ipsos is predicting growth at a 'faster pace' than in Q3, with sales up almost 5% on a constant scope and exchange rate basis.


Web site: www.ipsos.com .