Strong Results for Ipsos After 9 Months

Global agency Ipsos has reported significantly improved performance for the first nine months of 2003 - consolidated revenues are 7.3% up on the same period last year, at 400.9m Euros. Organic growth and the impact of newly consolidated companies contributed about evenly to a rise which, excluding negative currency effects, would have been 18.9%.

Organic growth of 9.5% over the 9 months was three times higher than that of the overall market, with a particularly strong third quarter. The impact of newly consolidated companies generated a 9.4% growth in activity over the first nine months of 2003.

Revenues from non-euro zone countries and regions (the UK, Central Europe, North and Latin America, Asia-Pacific and the Middle East) are converted into Euros for the above calculation, resulting in a drop of 11.6% in total revenues. At constant exchange rates, Ipsos' first nine-month revenues would have come close to 445m Euros.

The Group set a target - at the time considered ambitious - of 8% organic growth for the year, which it now says is certain to be exceeded. This growth is quite evenly balanced between the various business lines, although stronger in advertising effectiveness research, which has benefited from the establishment of a global organisation able to work continuously with major international clients.

Growth is also becoming more evenly balanced between regions, with a modest but definite pick-up in Europe. This is set to accelerate, but it will remain below 5% for the full-year 2003, whereas double-digit growth is expected in North and Latin America, and in Asia-Pacific. The Group's operating margin is set to rise for the sixth consecutive year.

In 2004, Ipsos aims to combine further organic growth with selective acquisitions, especially in high-potential regions, such as Asia-Pacific, Central Europe and North America. One of its stated aims is to develop more customised services for advertising effectiveness research, along with projects that rely on models to simulate and predict consumer behaviour. The Group also intends to develop more sophisticated techniques for measuring customer satisfaction and the effectiveness of consumer loyalty schemes.

Tables and some more information are available at www.ipsos-pa.com/dsp_displaypr_us.cfm?id_to_view=1967

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.