Ipsos Bounces Back

Global research group Ipsos has reported a very strong performance for the first six months of 2010, with revenue up 18.1% to EUR 528.8m (organic growth 7.7%) and adjusted net profit up 33.7% to EUR 32.0m.

Ipsos, which had predicted a return to growth in its statement in February, says performance was good between January and March (organic growth 6%) and excellent between April and June (9.1%). Exchange rate effects added 4.7% to revenues over the first half as a whole, while acquisitions - including OTX, which became part of Ipsos' scope of consolidation on 1 January this year - contributed 5.7%.

Perhaps more significantly given that the first half of last year saw Ipsos' first fall in revenues since 1977, comparisons with H1 2008 are also good: business levels were 13% higher at current scope and exchange rates, the same increase as that seen between 2006 and 2008.

Organic growth in emerging markets was an impressive 16%, while the firm's Global PartneRing programme for major clients accounted for 28% of revenues, and achieved organic growth of 14%.

Among business sectors, Opinion & Social Research business was weakest, while media research revenue leapt 47.2% to EUR 50.6m. Geographically, slower growth in Europe (7.9% to EUR 229.2m) slightly offset rises of between 26 and 30% in each of the other three regions (N America, Latin America and Asia Pacific/Middle East). In organic terms, European revenue rose 3.5%, that in North America 6.5%, Latin America 16% and Asia Pacific/Middle East 21%.

The company says growth has been re-established without sacrificing margins: gross margin, operating profit and net profit all increased substantially in the first half. The rise in gross margin was driven by the ongoing shift to online surveys and the integration of OTX. Ipsos paid $71m for the entertainment and media specialist, of which $60m was paid in the first half of 2010, with $11m due in the first half of 2012.

Looking forward, Ipsos says 2010 organic growth 'will be much higher than initially forecast, and should be between 6 and 8%', giving business volumes, at constant scope and exchange rates that exceed 2008 levels.

The firm says caution is necessary and stresses that 'The global economy is unlikely to see a return to pre-2008 growth rates for some time to come.' However, it remains essentially positive, citing the facts that 'Countries have not turned protectionist, companies have remained active, and people of all income levels are still working, hoping and consuming' and only complaining that 'the gap... between the political, economic and moral elites on the one hand and citizens on the other has increased, or is perceived as increasing. This gap needs to be closed, and it remains to be seen what type of social
organisation will emerge to close it.'

The report concludes that 'the role played by research companies is becoming increasingly valuable', explaining: 'At a time when institutions and companies resemble people driving down icy roads in a hurry, Ipsos and its peers are well positioned.'

Web site: www.ipsos.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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