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Ipsos Q2 Revenues Drop
Ipsos has reported a 5.9% drop in first half revenue to EUR 756m, with currency effects responsible for most of the fall (5.1%). In organic terms, second quarter decline all but wiped out the modest gains of the first quarter, giving overall H1 organic growth of 0.1%.
The second quarter accounts for nearly 55% of total H1 revenue, according to Ipsos, and between April and June reported revenue fell 7.1% compared with the same period in 2013 - the first time since the Q1 2013 that Ipsos has reported a fall. Operating profit also fell around 20% to EUR 39.1m.
Consolidated
revenues
(In millions of Euros) |
H1 2014 |
H1 2013 |
Change
H1 2014 / 2013 |
| Revenue |
756.0 |
803.7 |
-5.9% |
| Gross profit |
485.6 |
512.0 |
-5.2% |
| Gross margin |
64.2% |
63.7% |
+50bp |
| Operating profit |
39.1 |
49.0 |
-20.2% |
| Operating margin |
5.2% |
6.1% |
-90bp |
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By business line, revenue grew in the Asia Pacific region; was more or less stable in Europe, the Middle East and Africa; and was described as 'very disappointing; in the Americas, where it shrank by 2.5%. In May and June, Ipsos' business levels were defined as 'mediocre' in both Latin America and the USA.
Revenue contributions by geographic
area (in millions of Euros) |
1st half
2014
|
1st half
2013
|
Change
2014 /2013
|
Organic
Growth
|
| Europe, Middle East and Africa |
355.6 |
359.5 |
-1.1% |
+1.5% |
| Americas |
277.9 |
314.9 |
-11.8% |
-2.5% |
| Asia-Pacific |
122.5 |
129.3 |
-5.2% |
+2.5% |
| First-half revenue |
756.0 |
803.7 |
-5.9% |
+0.1% |
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By business line, Ipsos MediaCT, which had lagged behind in the first quarter, recovered in the second, and finished the first half with revenue down 3.5%. Ipsos Loyalty enjoyed two consecutive good quarters, and Ipsos Public Affairs and Ipsos ASI saw a slight downturn at the end of the period.
| Revenue contributions consolidated by business line (In millions of euros) |
1st half
2014 |
1st half
2013 |
Change
2014 / 2013 |
Organic
Growth
|
| Advertising Research |
120.3 |
131.6 |
-8.6% |
0% |
| Marketing Research |
390.6 |
420.2 |
-6.4% |
-1% |
| Media Research |
71.2 |
79.2 |
-10.1% |
-3.5% |
| Opinion & Social Research |
73.0 |
70.0 |
-0.1% |
+3% |
Customer and Employee
Relationship Management |
100.8 |
102.7 |
-1.8% |
+5.5% |
| First-half revenue |
756.0 |
803.7 |
-5.9% |
+0.1% |
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In a statement, the company said: 'Over the next few months there should be no shortage of factors supporting growth. Despite the fact that volumes remain low, the new services Ipsos offers its clients are becoming an essential vector of support for our business and for strengthening client relations. Considering the trends of the first semester, we expect full year revenue to be stable or grow slightly at constant scope and exchange rate and an operating margin in line with 2013.'
Web site: www.ipsos.com .
You can review our reports of Ipsos' financials for the last six years here .
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