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Increase in Ipsos Earnings
Global agency Ipsos has reported a 37.3% rise in net profit for 2002 to Euro 23.7 million, whilst operating profit rose by 18.3% to Euro 43.6 million.
As previously reported revenues for the year rose by 12% to Euro 538.4 million. At a constant level, revenues grew by 8%. Operating margin was 8.1%, an increase of 0.4% relative to 2001. This improvement is mainly due to increases in profit levels at companies already in the scope of consolidation in 2001, including a particularly strong performance by the Ipsos-ASI division in all countries in which this brand is present.
Net financial charges totalled Euro 5.9 million, compared to Euro 8.8 million in 2001. This sharp fall was due to a decline in interest rates -- particularly Libor USD rates -- and lower debt levels. Ipsos had net debt of Euro 134 million at end-2002, versus Euro 153 million at end 2001, giving gearing of 69.7% as opposed to 76.2% a year earlier. There are two reasons behind this improvement in Ipsos' financial position. Firstly, operating cash flow rose by 49.5% to Euro 46.8 million in 2002. Secondly, the fall in the dollar reduced the euro value of Ipsos' debts. As a result of this improvement, Ipsos has substantial leeway for financing internal developments and continuing its acquisition programme.
Acquisitions in 2002 included:
- In the USA, acquisition of Vantis, specializing in modelling research and consulting.
- In Sweden, acquisition of Imri and Eureka and Intervjubolaget
- In Germany, acquisition of Sample-INRA.
- Acquisition of F-Squared, which operates in Russia, Poland and Ukraine.
- Acquisition of Chinese company FAMS, which was merged with Ipsos-Link to create Ipsos China.
Positive factors in 2003 include the launch of new services in most business lines, a stronger presence in online research, rapid expansion in new and fast-growing markets such as Russia and China and, more generally, the opportunity to build on the successes achieved in 2002. Ipsos confirms that it expects organic growth of 8% and a continued improvement in operating margin in 2003.
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