Third quarter of
2015
Market trend remains stable
Revenue:
January - September: 1,260.9 million
euros (+7.9%)
July - September: 428.0 million euros (+3.7%)
Paris, 21 October
2015 - From July to September 2015, Ipsos recorded 428 million
euros in revenue, up 3.7% over the same period of the preceding
year. At constant scope and exchange rates, revenues were down 2.2%
in the quarter. We anticipate an improved performance in the fourth
quarter.
For the first nine months of the
year, Ipsos saw revenue of 1,260.9 million euros, up 7.9%. Currency
effects remain positive (8.6%), even if they fluctuated favourably
in the early months of 2015 and then more moderately since the
summer, due to a stabilising of the euro-to-dollar rate and a
weakening of many emerging country currencies against both the US
dollar and the euro.
The effect of change in scope was
0.3%, owing to the consolidation of the American company RDA as
of
July 1. At constant scope and exchange rates, Ipsos' revenues were
down 1%. This disappointing performance, largely arising from the
emerging countries, should be seen against an improvement in the
ratio of gross profit to revenue. The value at constant scope and
exchange rates of gross profit - also called net revenue by some of
Ipsos' competitors - was almost stable over the nine months, and
this bears out the high value-added offer strategy set out in our
New Way programme.
Consolidated revenues (in millions of euros) |
2015 |
2014 |
2013 |
Total growth for the period 2015/2014 |
First
quarter |
379.6 |
343.3 |
359.6 |
10.6% |
Second
quarter |
453.3 |
412.7 |
444.1 |
9.8% |
Third
quarter |
428.0 |
412.8 |
418.6 |
3.7% |
Total for the period from
1 January to 30 September |
1,260.9 |
1,168.8 |
1,222.3 |
7.9% |
Fourth
quarter |
- |
500.7 |
490.1 |
- |
Full year |
- |
1,669.5 |
1,712.4 |
- |
Consolidated
revenues by geographical area
The change in revenues by
geographical area does not call for particular comment. Each region
has been affected by decreased volume in the emerging markets,
offset in full in the Europe, Middle East and Africa region and in
part elsewhere, by stable or rising revenues in many of the more
developed markets. Even if over the whole year the emerging markets
will remain below their potential (or at least below what we
estimate to be their potential for 2015), it is likely, based on
sales in recent weeks, that improved performance in some of these
countries will contribute in part to brisker business for Ipsos at
the year-end than during the third quarter.
In
millions of euros |
2015
(9 months) |
2014
(9 months) |
2013
(9 months) |
Change 2015/2014 |
Organic growth
(9 months) |
EMEA |
555.5 |
539.1 |
541.1 |
3% |
0,5% |
Americas |
493.1 |
438.3 |
482.8 |
12.5% |
- 2% |
Asia-Pacific |
212.3 |
191.3 |
198.4 |
11% |
- 2% |
Total for the period from 1 January to 30
September |
1,260.9 |
1,168.7 |
1,222.3 |
7.9% |
- 1% |
Consolidated revenues by business line
By business line, the data vary
from one quarter to the next, but the year's major trends are by
now well established.
Ipsos Connect is the result of the
merger early in the year of the business lines related to measuring
media and those whose purpose is to improve the effectiveness of
advertising campaigns and, more broadly, to work on "brand
expression". This combination was necessary now that the
digitalising of companies' marketing activities has become a major
part of their growth plans. As we have already indicated, the
creation of Ipsos Connect has resulted in a complete overhaul of
our services and of our teams. In 2015, the impact is negative but
we expect positive effects from it during coming years.
Ipsos Loyalty, the business line
dedicated to programmes to measure customer relationships and the
quality of services offered, will end the year showing growth.
Ipsos Marketing is also expected
to do better than the Group average, thanks largely to a client
base that has diversified into vehicle manufacturers,
pharmaceutical laboratories and financial institutions.
Lastly, Ipsos Public Affairs,
which focuses on studying public opinion and civic behaviour, is
experiencing a good year in 2015, and all the more so since it
recently signed large contracts that will provide additional
revenue in 2016.
In
millions of euros |
2014
(9 months) |
2013
(9 months) |
2012
(9 months) |
Change 2014/2013 |
Organic growth
(9 months) |
Media and
Advertising Research |
289.9 |
294.1 |
320.2 |
-
1.4% |
-
6.5% |
Marketing
Research |
667.6 |
601.8 |
628.7 |
10.9% |
0.5% |
Opinion
& Social Research |
129.0 |
114.1 |
112.2 |
13.0% |
4% |
Client
and employee relationship management |
174.5 |
158.8 |
161.2 |
9.9% |
0% |
Total for the period from 1 January to 30
September |
1,260.9 |
1,168.7 |
1,222.3 |
7.9% |
- 1% |
Other information
about operating conditions in the first nine months
Profitability is in line with the
full-year objectives announced, mainly due to about a 50 basis
point increase in gross profit.
The gearing ratio stood at 68% at
30 September 2015, down on the same date last year, despite the
rise in the dollar, in which around 60% of debt is denominated.
This decline was made possible by strong generation of surplus
cash, which continues to grow at double-digit rates.
2015
Outlook
The economic context of the third
quarter of 2015 did not bring many changes, either in the West or
the East. Nevertheless, the increase in migratory movements and
their prominence in the media illustrate, and even bring to the
fore, considerable tensions between peoples. Other causes for
concern are still present: the pressure on prices in many sectors
and markets, making stronger global growth unrealistic; the
persistence of financial imbalances, primarily but not exclusively
in China; and in addition, the persistent rumour that technological
and scientific progress will bring - if this has not already
happened - hardship, job losses and new points of reference.
Furthermore, nothing and no-one has managed to rein in the advance
of irredentist claims which are a reflection of an anxiety which is
paradoxical (after all, the world has never been as prosperous as
it is today), of frustration and of anger.
Between millennialist thinking and
the opportunity for an intellectual, economic and moral
renaissance, society's mood is neither stable nor bright. The
consequences that these anxieties and frustrations will have on
business activity are difficult to predict with any certainty
today, except insofar as they have led the owners of capital to
lessen their exposure to certain risks and notably to emerging
countries, leading to large swings on the currency markets. The bad
news is that 2015 will have seen a slowdown in growth in many
emerging economies, with a combination of recessionary and
inflationary features even appearing in some.
As for the companies and
institutions which are Ipsos clients, the quarter was rather
uneventful. Most of them are experiencing moderate rates of growth
and are pursuing, though not necessarily accelerating,
rationalisation plans on the one hand and acquisitions on the
other. They are nevertheless continuing, albeit sometimes
hesitantly, with the digitalisation of their marketing
practices.
It is true that quite a few of
them, now global, are also involved in negotiations, even disputes,
with national and/or international public bodies seeking to confine
and regulate their behaviours.
In this environment, the outlook
for Ipsos has barely changed.
Ipsos has mobilised to implement
its New Way programme. Launched in the summer of 2014, its aim is
to adjust Ipsos' service offering to meet the new needs of the
market and the fresh possibilities offered by science and
technology, and thus to re-position the company towards more
productive services with greater added value.
Ipsos' "new services" will exceed
their commercial objectives in 2015, enabling our company, despite
adverse and unexpected developments of its volume of business in
several emerging markets, to achieve two major objectives:
-
To strengthen its ties with its major clients in
new services with high added value;
-
To obtain, despite significant additional
investment in technology, R&D and expert teams, a strong
financial performance, notably with excellent free cash-flow
generation and a current operating margin stabilised at 10% of
revenue.
Next publication
of full-year 2015 results: 17 February
2016.
GAME CHANGERS
« Game Changers » is the Ipsos signature.
At Ipsos we are passionately curious about people, markets, brands
and society.
We make our changing world easier and faster to navigate and
inspire clients to make smarter decisions.
We deliver with security, speed, simplicity and substance. We are
Game Changers.
Ipsos is
listed on Eurolist - NYSE-Euronext.
The company is part of the SBF 120 and the Mid-60 index
and is eligible for the Deferred Settlement Service (SRD).
ISIN code FR0000073298, Reuters
ISOS.PA, Bloomberg IPS:FP
www.ipsos.com
Ipsos - Third Quarter of
2015
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: IPSOS via Globenewswire
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