Ipsos Predicts Return to Growth in 2010

Despite a 3.6% decline in revenues to EUR 943.7m, Ipsos says it is 'ready for battle' in 2010, with plans to simplify management structures, increase effort in innovation, and extend its presence among a larger number of clients.

During the year, Ipsos sustained a fall in revenues for the first time since 1977. Sales fell by 1% in the fourth quarter, compared with a 5.0% fall over the first nine months of the year.

Gross profit declined 2.2% to EUR 589.4m, while operating margin (before non-recurring elements) rose 2.0% to EUR 101.7m.

In 2009, Ipsos reduced headcount by 400, and paid out EUR 12.9m in redundancy fees, which reduced salary costs by EUR 15.6m. This year, it plans to strengthen its teams through a 'selective recruitment policy' for management staff, as well as increased training efforts.

All business lines suffered but two proved more resilient than the rest. Opinion & Social Research saw a fall of just 2%, while ad effectiveness measurement research also sustained a drop in revenues of 2%.

Research relating to customer relations management experienced the greatest difficulty due to a customer base comprised primarily of car-makers, financial services and transportation companies.

By region, Asia-Pacific and the Middle East saw recovery in the fourth quarter with revenues up 9.5%, while as expected, revenues declined by 3% in North America in Q4.

The firm expects to grow by 3-5% this year, and to achieve operating margin of more than 10% compared with 9.4% in 2009.

Web site: www.ipsos.com .