Growth for Confident Ipsos

Ipsos has recorded first quarter revenue of EUR 390.1m, representing organic growth of 1%, and says sales activity indicates this will increase in subsequent quarters. The group plans to announce a new programme of transformation at its June 6th Investor Day.

The Q1 result was driven by growth in what Ipsos categorises as New Services, which enjoyed organic growth of more than 18%. These services have been driven forward by the New Way project implemented from the end of 2015, and now represent 12.9% of Ipsos' total revenue.


Performance by Region

Growth was strong in Europe, in particular the UK and Central and Eastern Europe; very strong in most of Asia-Pacific; and good in Latin America. Revenue declined in North America, due the group says to 'a portfolio of contracts that is undergoing change and due to an unfavourable comparison basis'. Generally, revenues are becoming more dependent on 'large annual programmes' and less so on 'shorter and more ad hoc assignments'. This is leading to a lag in realisation of benefits of sales efforts in North America (sales here were flat in the first quarter, while revenue was down 6%).

Consolidated revenues by geographic area (In millions of Euros)	1st Quarter 2017	1st Quarter 2016	Change 2017/2016	Organic growth
Europe, Middle East and Africa	168.2	166.8	0.9%	4%
Americas	149.8	154.2	-2.8%	-5%
Asia-Pacific	72.0	66.0	9.2%	6%
Quarterly revenues	390.1	386.9	0.8%	1%

Performance by Business Line

Ipsos Public Affairs - with opinion polls prominent - saw an increase of 12% in the quarter (vs Q1 2016); while recently established Ipsos Connect posted a decline of 6% - however the latter figure again reflects the lag between sales and revenue, and Connect's sales are said to be satisfactory or even increased while Public Affairs' growth should slow a little.

Consolidated revenues by business line (In millions of euros)	1st Quarter 2017	1st Quarter 2016	Change 2017/2016	Organic growth
Media and Advertising Research	81.3	86.4	-5.9%	-6%
Marketing Research	208.6	206.4	1.1%	1%
Opinion & Social Research	44.7	40.2	11.1%	12%
Client and Employee Relationship Management	55.4	53.9	2.8%	3%
Quarterly revenues	390.1	386.9	0.8%	1%

Ipsos says gross profit 'continued to grow at a faster pace than revenue' due to the move towards New and online services, while profitability is 'in line with the objectives announced for the full year' given significant investment in 'New Way'. The initial success of New Way has encouraged Ipsos to 'accelerate its transformation' and the firm says that when the programme comes to an end in December it will implement a new growth plan, to be unveiled at its 6th June Investor Day.

Ipsos anticipates growth of 3% for the full year, roughly equivalent to 2016, with operating profit 'to improve slightly faster than in 2016'.

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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