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Ipsos First Half Revenues Rise 5.6%
Fresh from announcing its deal to buy Synovate, Ipsos has achieved organic growth of 6.3% in the first half of the year, reporting a 5.6% increase in revenues to EUR 558.2m.
Revenue growth was down slightly compared with the first quarter, because of an 'unfavourable' currency effect (0.9%), and because of the integration of Panamanian company TMG. Adjusted net profit rose 16.8% year-on-year to EUR 37.4m.
| In million euros |
H1 2011 |
H1 2010 |
Change |
Full-year 2010 |
| Revenue |
558.2 |
528.8 |
+5.6% |
1 140.8 |
| Gross profit |
361.8 |
333.0 |
+8.6% |
722.7 |
| Gross margin |
64.8% |
63.0% |
|
63.4% |
| Operating margin |
46.9 |
43.0 |
+8.9% |
119.5 |
| Operating margin / revenue |
8.4% |
8.2% |
|
10.5% |
| Net profit (attributable to the Group) |
27.6 |
23.4 |
+17.8% |
66.2 |
|
Adjusted net profit*
attributable to the Group |
37.4 |
32.0 |
+16.8% |
86.1 |
By Region
First half growth was 14.2% in emerging markets, and only 3.1% in developed markets. Following the tsunami and nuclear crisis in Japan in March, revenues in the country fell by 23%, but sales of new projects have since returned to a 'more or less' normal rate. In the UK, revenues fell 15% due to budgetary cuts in the public sector, while sales improved during the second quarter.
By region, Ipsos' performance did not vary much between the first and second quarters, with the Asia-Pacific region leading the way, despite the poor performance in Japan.
Consolidated revenues by geographic area
(In million euros)
|
H1 2011 |
H1 2010 |
Change
2011/2010 |
Organic
Growth
|
| Europe, Middle East and Africa |
247.7 |
242.1 |
2.3% |
2.5% |
| Americas |
245.4 |
232.1 |
5.8% |
8.5% |
| Asia-Pacific |
65.1 |
54.6 |
19.1% |
15.5% |
| First-half revenues |
558.2 |
528.8 |
5.6% |
6.3% |
|
By Business Line
By business line, the firm reports a 'strong overall performance', with the one exception of the Opinion & Social Research business, influenced by cuts in the UK.
Consolidated revenues by business line
(In million euros)
|
H1 2011 |
H1 2010 |
Change
2011/2010 |
Organic
Growth
|
| Advertising Research |
121.7 |
118.1 |
3.0% |
6.5% |
| Marketing Research |
253.6 |
242.2 |
4.7% |
8% |
| Media Research |
62.3 |
50.6 |
23.1% |
12.5% |
| Opinion & Social Research |
61.3 |
66.5 |
-7.8%
|
-9% |
Customer Relationship
Management
Research
|
59.3 |
51.4 |
15.4% |
14.5% |
| First-half revenues |
558.2 |
528.8 |
5.6% |
6.3% |
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The Synovate Acquisition
Yesterday, Ipsos agreed to acquire Synovate for £525m (EUR 595m), creating the world's third largest market research company. The deal is to be funded with cash, new debt financing, and a rights offering to Ipsos shareholders.
Ipsos says it is making the acquisition to better meet the new needs of its clients by improving its geographical coverage, and to expand its resources and become more efficient.
The company also says it needs to invest more in the use of technologies that allow for better measurement and understanding of people, and to offer its clients more experience, more professionals, more methodologies and more expertise.
In a statement, Ipsos states: 'Over the next few months, we will draw up our plans with the teams at Ipsos and our new colleagues from Synovate. Subject to the agreement of Aegis's shareholders and that of the antitrust authorities of certain countries, Ipsos' 10,000 professionals are preparing to welcome the 6,000 professionals from Synovate, working together to achieve one aim: to be our clients' partner of choice in our chosen areas of expertise.'
Ipsos, as it currently stands, is anticipating organic growth of more than 6% in 2011.
Web sites: www.ipsos.com and www.synovate.com .
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