Ipsos Thriving as Handover Approaches

Ipsos has posted third quarter revenue of EUR 526.3m, up 12.3% versus Q3 2020 and 5.4% - or 8.5% in organic growth terms - compared with Q3 2019. The firm says profitability is 'in line with the objectives for the year announced in July', with a slight improvement predicted in operating margin.

Allowing for small positive currency effects, like-for-like revenue growth was 11.4%. Looking at the nine months to date, Ipsos' growth at constant rate and scope was 24.0% versus 2020 and 12.0% versus 2019.

There is significant difference by region: Asia Pacific had been hit badly by the pandemic reaction and has almost recovered that ground in 2021 but no more. The Americas region has grown by around a quarter so far this year versus 2020, resulting in a respectable two-year growth rate overall of 7.3%. The EMEA region was very little affected by Covid economics - down by only 2.5% in the first nine months of 2020 - and has done phenomenally well so far in 2021, both in the region's developed and developing markets. Ipsos says the APAC decline 'does not concern China or India but applies to many other countries such as Japan and Australia, illustrating the lesson Ipsos has learned since the beginning of the pandemic: our business is less affected by the epidemic itself than by the lockdown measures put in place to limit its spread'.

Consolidated Revenue by Quarter

Consolidated revenue (In millions of euros)	Revenue 2021	2021 vs. 2020		2021 vs. 2019
		Total growth	Organic growth	Total growth	Organic growth
1st quarter	466.3	8.8%	14.1%	10.5%	14.1%
2nd quarter	527.0	47.5%	52.3%	9.5%	13.6%
3rd quarter	526.3	12.3%	11.4%	5.4%	8.5%
9-month total	1,519.6	21.1%	24.0%	8.3%	12.0%

Performance by Region

In millions of euros	9-month revenue	Contribution	2021 vs. 2020	2021 vs. 2019
			9-month organic growth	9-month organic growth
EMEA	731.9	48%	24.5%	21.9%
Americas	533.5	35%	25.5%	7.3%
Asia Pacific	254.2	17%	19%	-1.6%
Total	1,519.6	100%	24.0%	12.0%

Ipsos' Public Affairs and Corporate Reputation segment, 'Citizens', has enjoyed huge growth over the two years, totalling 44.6% (organic), while 'Doctors and Patients' also saw a very strong rise in 2021.

In the 'Consumers' segment Ipsos says its revenue fell sharply in the first half of 2020, but it is the firm's 'largest, oldest and most global audience' and the decline represented unavoidable practical problems with data collection methods required in the sector alongside spending cuts by many companies: 'how, for example, could people try a new ready-made meal or a new coffee capsule, when the technical solution designed and sold by Ipsos involves going to people's homes and showing them how to heat the meal or install the capsule before they test it themselves?' However the company says its clients 'took the time to assess the situation created by the pandemic and realized that unlike other crises, this pandemic would not result in a dramatic increase in poverty and a consequent fall in demand'. Consequently, a robust recovery is underway here, with a 2021 increase which 'compensates for, and exceeds, the fall in 2020'.

Performance by Audience

In millions of euros	9-month revenue	Contribution	2021 vs. 2020	2021 vs. 2019
			9-month organic growth	9-month organic growth
Consumers 1	664.7	44%	31.5%	9.0%
Customers and employees 2	314.9	21%	16%	-9.5%
Citizens 3	281.1	18%	15%	44.6%
Doctors and patients4	258.9	17%	27%	28.5%
Total	1,519.6	100%	24.0%	12.0%
Breakdown of Service Lines by audience segment: 1 - Brand Health Tracking, Creative Excellence, Innovation, Ipsos UU, Ipsos MMA, Market Strategy & Understanding, Observer (excl. public sector), Social Intelligence Analytics 2 - Automotive & Mobility Development, Audience Measurement, Customer Experience, Channel Performance (including Retail Performance and Mystery Shopping), Media development, Capabilities 3 - Public Affairs, Corporate Reputation 4 - Pharma (quantitative and qualitative)

The 'Customers and Employees' segment recovered in 2021 but is still well down on 2019 levels (almost 10%). Ipsos notes that 'As 2021 progresses, the negative consequences of the covid-19 pandemic diminish. Thus, 2022 could be the year of a return to growth for the Customers segment'.

Ipsos says an accelerating order book allows it confidence in forecasting organic growth for the year, which it now believes will be 'at least 17% compared to 2020 and 'around 10%' compared to 2019'. Operating margin is expected to rise above the 11% previously predicted, in the second half which is traditionally strong for the group.

Co-founder and outgoing CEO Didier Truchot (pictured) sums up by saying that Ipsos is 'an independent source of vital information, an efficient research company that has evolved significantly in recent years and will transform itself even further in the years to come'. The firm says it has 'a strong, profitable growth plan, driven by innovative and powerful developments that Ben Page, the new Chief Executive Officer of the company, starting November 15th, will develop and implement in the coming months with the support of the Board of Directors and the contribution from all Ipsos teams'.

Ipsos operates in 90 markets and employs 18,000 people. 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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