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Weak Euro Covers Flat Half Year for Ipsos
Ipsos has reported half-year revenues up 10.2% in Euros to EUR 832.9m. Given that the Euro has lost around 20% of its value against the dollar and 10% against the pound in the last 12 months, this equates to a real-terms decline of -0.4%. Profit measures showed a slight improvement.
 In total, the group generated operating profit of EUR 46.8m, representing 5.6% of revenue, up slightly compared to last year. The firm says that changes in the scope of business activity have had a negligible effect on its results.
Financial
Performance
(in millions of euros)
|
H1
2015
|
H1
2014
|
Change
H1 2015 / H1 2014
|
| Revenue |
832.9 |
756.0 |
+10.2% |
| Gross profit |
536.4 |
485.6 |
+10.4% |
| Gross margin |
64.4% |
64.2% |
+20
pb |
| Operating profit |
46.8 |
39.1 |
+19.7% |
| Operating margin |
5.6% |
5.2% |
+40
pb |
| Total of exceptional, non-recurring items |
(11.2) |
(7.9) |
+6.8% |
| Finance
charge |
(12.1) |
(11.8) |
+2.4% |
| Tax |
(4.5) |
(4.2) |
- |
Adjusted net profit
(attributable to the Group) |
30.5 |
26.1 |
+16.9% |
|
By geographical region, Ipsos said revenue increased in developed markets, especially in the US, the UK, Germany and Japan, while revenue in emerging markets fell by 2%. The EMEA (Europe, Middle East, Africa) region grew slightly, despite difficulties in Russia and the Middle East, thanks to 'strong performances' in the UK and in Africa. However, in certain markets across Asia-Pacific, in particular in China, Ipsos has decided to withdraw from some large-volume contracts that have generated recurring losses.
Consolidated revenues by geographical area
(in millions of euros)
|
1st Half 2015
|
1st Half 2014
|
Change 2015/2014 |
Organic Growth
|
| Europe, Middle East and Africa |
369.5 |
355.6 |
3.9% |
0.5% |
| Americas |
326.4 |
277.9 |
17.5% |
0% |
| Asia-Pacific |
137.0 |
122.5 |
11.8% |
-3.5% |
| Total |
832.9 |
756.0 |
10.2% |
-0.4% |
|
By business line, both Ipsos Connect and Ipsos Loyalty have seen a decline in revenue - with the former described as 'short-term' following the division's recent overhaul. Ipsos Marketing has reported 'slightly better' half year results, and the firm says its Public Affairs division continues to occupy a 'strong position' in the marketplace - in particular in the UK, Canada, Australia, France and Mexico.
Consolidated revenues by business line
(In millions of euros) |
1st Half 2015 |
1st Half 2014 |
Change
2015/2014 |
Organic Growth
|
| Media and Advertising Research |
193.3 |
191.5 |
1.0% |
-6% |
| Marketing Research |
446.5 |
390.7 |
14.3% |
1.5% |
| Opinion & Social Research |
86.6 |
73.0 |
18.6% |
8% |
Client and Employee Relationship
Management |
106.5 |
100.8 |
5.6% |
-2.5% |
| Total |
832.9 |
756.0 |
10.2% |
-0.4% |
|
In a statement, the company said: 'The year is far from over. We believe that we will, as a minimum, reach our forecasts in developed markets. If we are able, which is currently not assured, to reduce the gap between the level of activity seen in developing countries and the budgeted level of activity, we will achieve our internal growth target. Ipsos' teams are ready and motivated to improve results in the second half of the year, whilst being aware that the environment in which they are working remains volatile and uncertain'.
Web site: www.ipsos.com .
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