Daily Research News Online no. 20501 - Ipsos Plots 'New Way' after 'Unsatisfactory Year'

Ipsos Plots 'New Way' after 'Unsatisfactory Year'

February 26 2015

Ipsos has reported a 2.2% increase in fourth quarter revenue to EUR 500.7m - a rise it describes as a 'timid return to growth' reflecting more favourable foreign exchange trends - and 'slight' organic growth of 0.8%.

Three years of 'no financial progress' for Ipsos For 2014 as a whole, Ipsos reported a 2.5% drop in revenue to EUR 1.67bn and operating profit of EUR 173.1m, which the firm blames on negative foreign exchange trends and negative scope effects, only partially offset by 'small' organic growth of 0.3%. Ipsos said 2014 had been an 'unsatisfactory year', and that over the past three years it has not progressed in financial terms.

This position has prompted the introduction of an initiative it calls 'The New Way' project, which includes twenty measures relating to the firm's structure and governance, to be implemented over the next three years. For the year 2015, Ipsos is hoping that the programme will deliver organic growth of 1%-2%, increasing to 2%-5% in 2016 and 2017.

Consolidated revenues by geographical area (in millions of euros)	2014	2013	Change 2014 / 2013	Organic Growth
Europe, Middle East and Africa	760.9	752.2	1.2%	2%
Americas	634.1	675.6	-6.1%	-1.5%
Asia-Pacific	274.5	284.6	-3.6%	-1%
Full year revenues	1,669.5	1,712.4	-2.5%	0.3%

Ipsos said the EMEA region had been the 'most dynamic' in 2014, with organic growth of 2% stemming from emerging markets and from revenue increases in the UK, Belgium, the Netherlands and Spain. The Americas region showed a 1.5% decline, and the Asia Pacific region saw revenues drop 1%.

Consolidated revenues by business line (In millions of euros)	2014	2013	Change 2014 / 2013	Organic Growth
Advertising Research	257.9	274.5	-6.1%	0.5%
Marketing Research	864.5	891.0	-2.1%	0%
Media Research	157.1	169.7	-7.5%	-5%
Opinion & Social Research	163.1	152.0	3.1%	4%
Client and Employee Relationship Management	226.8	225.2	-0.1%	3.5%
Full year revenues	1,669.5	1,712.4	-2.5%	0.3%

Ipsos MediaCT (now combined with Ipsos ASI and called Ipsos Connect) saw its business levels 'lag' throughout the year, while the Public Opinion and Social Research division experienced 'real success' in 2014, after a flat 2013.

Financial Performance (in millions of euros)	2014	2013 Published
Revenue	1,669.5	1,712.4
Gross profit	1,072.2	1,098.8
Gross margin	64.2%	64.1%
Operating profit	173.1	182.1
Operating margin	10.4%	10.6%
Other operating income and expense	(17.2)	(18.2)
Finance costs	(22.8)	(23.4)
Income tax	(34.1)	(33.5)
Adjusted net profit * (attributable to the Group)	120.8	121.0

Looking to 2015, Ipsos said in a statement: 'We intend to leverage our competitive advantages: our size, presence in all major markets, our market knowledge and client relations, the diversity and expertise of our staff, our ability to innovate and our values of integrity, curiosity, collaboration, client focus and, of course, entrepreneurial spirit. We are confident in our ability to showcase our skills, experience, objectivity and flexibility, and to deliver reliable, real-time, clear and insightful information.'

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.