Tough Comparatives and Uncertainty Dent Ipsos' Q1

Ipsos has reiterated its forecast of higher organic growth this year than last, despite reporting Q1 decline of 1.8%. Scope and currency effects meant reported revenue was up 2.0% to EUR 568.5m. Revenues declined in the Americas, Asia Pacific and - partly for cyclical reasons - in the group's 'Citizens' segment.

Global CEO Ben Page says the results are 'in line with our expectations, which anticipate a gradual recovery in activity over the year considering the comparison basis and as the measures taken by the new management team in the United States bear fruit.' Targets for organic growth and operating margin remain in place for 2025. However Page notes that 'the environment remains very volatile and calls for caution.'





By Region

Total growth in the EMEA region was 6.1%, driven by the integration of Infas in Germany since January. Organic growth was also stable, from a combination of good results in Continental Europe with a 'temporary but sharp' decline in recent months in the group's public affairs business in France and the UK - which it says is due to the electoral cycle - and an unfavourable base effect (9.7% organic growth in the first quarter 2024).

An uncertain political situation in the US contributed to an organic decline of 1.7% for the Americas. Aside from the Public Affairs service line, Ipsos saysits verticals are 'showing encouraging signs' with organic growth of over 2%, with strong performance of activities related to consumer goods. In Asia Pacific growth is still held back by the lack of recovery in China, as well as a slowdown in activity with certain major international clients and governments. Here also there was an unfavourable base effect (9.2% organic growth in the first quarter of last year).





By Service Line

Service lines dedicated to consumers, customers and employees are stable and reflect sustained demand from consumer goods players, following a very strong performance in the first quarter 2024 (7.4%). The 'Citizens' segment has declined during the quarter, reflecting governments' wait-and-see attitude, according to the firm, as well as the impact of the electoral cycle in countries including Britain and France, with an improvement anticipated 'in the coming months.'

The doctors and patients audience is performing well with organic growth of over 5%, with the first signs of an apparent pick-up in demand from major pharmaceutical industry clients.





Breakdown of Service Lines by audience segment:
1- Brand Health Tracking, Creative Excellence, Innovation, Ipsos UU, Ipsos MMA, Market Strategy & Understanding, Observer (excl. public sector), Ipsos Synthesio, Strategy3
2- Automotive & Mobility Development, Audience Measurement, Customer Experience, Channel Performance, Media development, ERM, Capabilities
3- Public Affairs, Corporate Reputation
4- Pharma (quantitative and qualitative)


DIY platform Ipsos.Digital continues to drive growth with organic growth of c. 30% in the first quarter.

The Group says volatility in markets linked to the new American tariff policy 'has not had a significant impact on Ipsos' activity at this stage', and notes that its order book at the end of the first quarter is 'encouraging', with gross margin continuing to improve and cash generation is in line with forecasts.

Ipsos confirmed its financial targets for 2025, namely organic growth higher than that of 2024 and an operating margin of around 13% at constant scope, excluding the impact of acquisitions in 2025.

Web site: www.ipsos.com .