Ipsos to Report Flat Third Quarter

Ipsos has issued an update with advance notice of flat third quarter revenue totalling EUR 591m. However, improvements in profit margins together with good organic growth outside the US (4.0% in Q3) mean the group remains confident and will continue with current major programmes of investment.

Reported revenue was up 0.5%, but in organic terms declined very slightly (-0.1%). In the first nine months of the year, revenue is up 3.3%, of which 2.4% is organic.

Ipsos said the Q3 figure was 'below expectations' and added 'we do not expect a significant rebound by the end of the year'. Its annual organic growth target has been adjusted to c.1%, but an improvement in gross margin (up by nearly 5% in the nine months) and 'good financial discipline' mean the firm can continue investments in platforms development and genAI solutions, while maintaining its annual operating margin target of around 13%.

Business in Continental Europe, the Middle East and Latin America has grown, while in France and some Asian countries macroeconomic and political uncertainties have led to a decline. Overall performance, 'like that of some major competitors in the sector', is being held back by what Ipsos calls 'a difficult situation in the United States' - but the firm hopes the new management in place since the summer should help it improve there in 2025.

Third quarter results in full will appear next week.

Web site: www.ipsos.com .