First quarter of
2017
Fifth consecutive
quarter
of organic growth
Revenues: €390.1
million
Total organic growth, first quarter:
+1%
Organic growth of New Services: +18%
Paris, 27 April 2017 - From January to March
2017, Ipsos' revenue hit a record high of €390.1 million, up 0.8%
compared with the first quarter of 2016, which was the most
important ever recorded.
Currency and scope effects were
limited and almost offset one another, the first being positive and
the second negative to the tune of around 1%. Total growth at
constant scope and exchange rates amounted to 1%. It was once again
driven by the growth in New Services, which, moreover, exceeded 18%
on a like-for-like basis. In the first quarter of 2017, New
Services, whose development was accelerated from the end of 2015 by
the implementation of the New Way project, represented 12.9% of
Ipsos' revenue, compared with a weighting of 11% last
year.
Their performance demonstrates the extent of the transformations
shaping the market in which Ipsos operates and the crucial need to
implement protocols and innovative services enabling companies and
public and private institutions to better measure, understand and
predict the behaviour and attitudes of the public and
consumers.
Performance by
region and business line
Ipsos' performance by geographical
area was strong in Europe, in particular in the United Kingdom and
Central and Eastern Europe, excellent in Asia-Pacific in almost all
markets and also positive in Latin America. It was negative in
North America on account of a portfolio of contracts that is
undergoing change and due to an unfavourable comparison basis.
Today, large annual programmes are becoming more widespread than
before in Ipsos' revenues and replacing shorter and more ad-hoc
assignments. Under these conditions, revenue is recognised more
gradually and over a longer period after winning a given contract.
Consequently, and particularly in North America, where these
contracts are relatively more frequent than in previous years, we
are seeing a significant difference emerging between sales
performed and confirmed and revenue recognition.
For Ipsos as a whole, at the end
of March 2017, sales, at constant scope and exchange rates, were up
more than 3%, while revenue was up 1%. In North America, the
difference is even more marked, with sales almost stable while
revenue in the quarter was down 6%. These differences, by their
very nature, will ease and then disappear in the fourth
quarter.
Overall, it should be remembered
that the first quarter is the most important period of the year in
terms of sales - with around 50% of total sales, and conversely, it
is the weakest quarter in terms of revenue, with less than 20% of
annual volumes. This disparity holds true for all geographical
areas and businesses. In consequence, it is clearly necessary to
remain cautious about data published by geographical area and
business line and to avoid automatically extrapolating this data
across the whole year.
Consolidated revenues
by geographical area
(in millions of euros) |
1st quarter
2017 |
1st quarter
2016 |
Change 2017/2016 |
Organic growth |
Europe,
Middle East and Africa |
168.2 |
166.8 |
0.9% |
4% |
Americas |
149.8 |
154.2 |
-2.8% |
-5% |
Asia-Pacific |
72.0 |
66.0 |
9.2% |
6% |
Quarterly revenues |
390.1 |
386.9 |
0.8% |
1% |
There were very constrasted
differences in the development of activities from one business line
to another, notably for two of them, Ipsos Public Affairs and Ipsos
Connect. Ipsos Public Affairs, which manages services related to
public opinion polls, is looking very robust, with an increase of
12%. In contrast, Ipsos Connect, after having stabilised in 2016,
posted a decline of 6%. These two results do not reflect the
respective business volumes that Ipsos Public Affairs and Ipsos
Connect are expected to achieve across the full year. Ipsos
Connect, which brings together Ipsos' activities relating to the
performance of media and communication campaigns, is also affected
by the time lag between sales, which are at a satisfactory level,
and even posting an increase compared to the same period in 2016,
and the rate at which the value of these services is recognised,
which is slower and more gradual than in 2016. For Ipsos Public
Affairs, the pace of growth is expected to slow, even though sales
are very dynamic - if only due to the limits imposed by the time
needed to field more teams capable of performing, under proper
conditions, programmes to fulfil tenders won by Ipsos.
Consolidated revenues by business line
(in millions of euros) |
1st quarter
2017 |
1st quarter
2016 |
Change 2017/2016 |
Organic growth |
Media and
Advertising Research |
81.3 |
86.4 |
-5.9% |
-6% |
Marketing
Research |
208.6 |
206.4 |
1.1% |
1% |
Opinion
& Social Research |
44.7 |
40.2 |
11.1% |
12% |
Client
and employee relationship management |
55.4 |
53.9 |
2.8% |
3% |
Quarterly revenues |
390.1 |
386.9 |
0.8% |
1% |
Other information
about operating conditions in the first quarter
Gross profit continued to grow at
a faster pace than revenue due to the ongoing transition to online
activities, the high gross profit earned on New Services, and good
management of prices charged to clients.
Given the expected investment
under the New Way programme (€5 million in additional operational
expenses in 2017), profitability is in line with the objectives
announced for the full year.
Net gearing at 31 March 2017, at
53%, is down compared to that recorded at 31 December 2016 (58%).
This reduction was made possible by good free cash flow
generation.
Ipsos operates in a market that is
undergoing major transformation. In itself, this is nothing
unusual. On the contrary, it would be unusual if the market was not
changing while all other markets are being transformed
significantly by the effect of new technologies, the geographical
expansion of activities and an abundance of liquidity, which is
facilitating the introduction of new offerings for both existing
and new players.
Mid-2014, Ipsos decided that it
needed to offer its clients new solutions with the guiding
principle of making this the main focus of a strategy to achieve a
substantial improvement in the quality of its services and,
consequently, "profitable growth". Ipsos is currently growing more
rapidly than its principal competitors in specific markets in which
its direct competitors operate.
Boosted by this initial success, Ipsos has decided to accelerate
its own transformation and, following the New Way programme that is
due to end as planned at the end of 2017, to develop a new growth
plan to be unveiled for the first time at the Investor Day
organised by Ipsos on 6 June.
As a result, 2017 promises to be a
very busy year. The Group expects its growth to reach 3%, roughly
equivalent to that seen in 2016, operating profit to improve
slightly faster than in 2016, preparations to be made for the
implementation of Ipsos' new development plan, so that it can be
operational from the beginning of 2018, increased communication
about the relevance of the methods we have chosen to use -
including surveys - so as to provide all clients with accurate and
relevant information, always bearing in mind the crucial importance
of providing clear, understandable and interesting analysis and
dissemination of information. Finally, the Group expects to
advocate more, if necessary, to promote its values of openness,
partnership and uncompromising professionalism to both our clients
and our teams.
Investor Day 2017:
6 June 2017, Paris
Next publication:
26 July 2017, first-half results
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, simplicity, speed 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 - First quarter of
2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
Ipsos (EU:IPS)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Ipsos (EU:IPS)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024