Revenue:
January - September: 1,260.9 million euros
(+7.9%)
July - September: 428.0 million euros
(+3.7%)
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
http://hugin.info/143536/R/1960478/714677.pdf
HUG#1960478
CONTACT: Laurence Stoclet
Deputy CEO
E-mail: laurence.stoclet@ipsos.com
Tel.: + 33 1 41 98 90 20
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