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Synovate Integration Slows Ipsos Growth
Ipsos has reported a 46% increase in first quarter revenues to EUR 379.9m, reflecting the addition of Synovate's business. However, it admits the need to integrate the two businesses has slowed expansion: volume of sales was down slightly on Q1 2011, and organic growth of just 2% is expected this year.
Ipsos' £528.8m acquisition of Synovate took place in October, and formed the third largest market research company in the world. Since Synovate's financial figures weren't included in its financial systems until 1 October, Ipsos says it is impossible to calculate the organic component of this quarterly revenue. However, the company believes that the best indicator of activity levels is the volume of sales, which for the period, was down slightly by 3.5% compared with Q1 2011.
Consolidated revenues
(million of euros) |
2012 |
2011 |
2010 |
| 1st quarter |
379.9 |
260.1 |
236.9 |
| 2nd quarter |
- |
298.1 |
291.9 |
| 3rd quarter |
- |
287.6 |
283.6 |
| 4th quarter |
- |
517.0 |
328.4 |
| Full year |
- |
1,362.9 |
1,140.8 |
Revenues by geographic area and business reflect the contribution of Synovate to the new 'scope' of Ipsos. The firm says it was particularly satisfied with the strengthening of its position in the Asia Pacific region, where revenues soared by 126% to EUR 63.7m from EUR 28.1m in Q1 2011.
Across EMEA, consolidated revenues rose 51% to EUR 176.2m, while the Americas reported a 22% increase to EUR 140.0m.
Consolidated revenues
by geog area
(million of euros)
|
Q1 2012 |
Q1 2011 |
% change |
% constant rate |
| EMEA |
176.2 |
116.9 |
51% |
50.5% |
| Americas |
140.0 |
115.1 |
22% |
19% |
| Asia-Pacific |
63.7 |
28.1 |
126% |
118% |
| Quarterly revenues |
379.9 |
260.1 |
46% |
44% |
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By business line, consolidated customer and employee research revenue jumped 90% to EUR 46.8m, while revenue derived from what Ipsos defines as 'marketing research' was up 65% to EUR 196.9m.
Consolidated revenues
by business line
(million of euros)
|
Q1 2012 |
Q1 2011 |
% change |
% constant rate |
| Advertising Research |
61.0 |
57.5 |
6% |
4% |
| Marketing Research |
196.9 |
119.4 |
65% |
63% |
| Media Research |
37.3 |
29.5 |
26.5% |
23.5% |
| Opinion and Social Research |
37.8 |
29.1 |
30% |
27.5% |
| Customer and Employee Relationship Management |
46.8 |
24.7 |
90% |
88% |
| Quarterly revenues |
379.9 |
260.1 |
46% |
44% |
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Ipsos says the efforts made to integrate the two firms' businesses, staff, methodologies and business cultures temporarily slowed commercial expansion across the group. However, Ipsos is expecting to see moderate organic growth, of around 2% in 2012, with an operating margin before non-recurrent items of 10%.
In a statement, the firm said: 'The acquisition of Synovate represents a crucial success for Ipsos, which has become a leading player in the research industry as a result, and a pioneer in the definition and monetisation of consumer insight services.'
Web site: www.ipsos.com .
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