Ipsos - First quarter 2019 sales
Press releaseQ1
2019On the right track Q1 2019
revenue: €422.1 million up +15.0% Quarterly organic growth:
2.4%
Paris, 25 April 2019
During the first quarter of 2019, Ipsos reached
a record high generating revenue of €422.1 million, which
represents a 15% increase on the same period last year. All areas
of the business contributed to this positive performance. The
integration of Synthesio and the four divisions of GfK Research
accounted for 10.2% of the surge in revenue. The exchange rate
effect, which last year had a considerable negative impact causing
Q1 2018 reported revenue to be down 8% on the year, resulted in a
lift of 2.6% in Q1 2019.Furthermore, organic growth (at comparable
scope and exchange rates) reached 2.4%, which falls within the
announced and confirmed annual target bracket of between 2% and 4%.
This level of growth is encouraging as it relates to a solid basis
of comparison (revenue was up 2% in Q1 2018), and reflects an
improvement on the three previous quarters (1%, 0% and 0% in Q2, Q3
and Q4 2018, respectively).
PERFORMANCE BY
REGION
Breakdown of consolidated revenue by region (in
millions of euros) |
Q1 2019 |
Q1 2018 |
Reported change |
Organic growth |
Europe, Middle East and Africa |
185.2 |
167.5 |
10.6% |
0.7% |
Americas |
155.4 |
129.4 |
20.1% |
0.4% |
Asia-Pacific |
81.4 |
70.1 |
16.2% |
9.9% |
Quarterly revenue |
422.1 |
367.0 |
15.0% |
2.4% |
Ipsos recorded very strong performance in
Asia-Pacific, while business in the other regions remained stable.
Results were also extremely positive in its main markets,
especially in the United States, the United Kingdom – where any
potential negative impact of Brexit-related disruption remained
limited – as well as in China, France and certain emerging
economies such as Turkey, Russia and India. However, other markets
less critical to Ipsos’ business model but nevertheless significant
are still struggling to settle into a reasonable level of activity,
in particular Germany, southern Europe and Latin America.
Unsurprisingly, Ipsos is enjoying a faster rate of growth in
emerging economies than in its more established markets, where
revenue increased 5.8% and 0.8%, respectively.
PERFORMANCE BY
SEGMENT
(in millions of euros) |
Q1 2019 |
Contribution |
Reported change |
Organic growth |
Consumers1 |
247.5 |
58.6% |
9.3% |
2.1% |
Clients and employees2 |
72.3 |
17.1% |
22.2% |
1.5% |
Citizens3 |
58.6 |
13.9% |
27.0% |
5.5% |
Doctors and patients4 |
43.7 |
10.4% |
23.6% |
1.1% |
Quarterly revenue |
422.1 |
100% |
15.0% |
2.4% |
Breakdown of each business line by
segment:1Audience Measurement, Brand Health, Clinics & Mobility
Labs, Creative Excellence, Innovation, Ipsos UU (excl. pharma),
Ipsos MMA, Market Strategy & Understanding, Observer (excl.
public sector), Media Development, Social Intelligence
Analytics2Customer Experience, Market Measurement, Mystery
Shopping, Quality Measurement, Retail Performance, ERM3Public
Affairs, Corporate Reputation4Healthcare (quantitative and
qualitative)
As in 2018, growth in Q1 2019 was driven
primarily by operations involving citizens. Ipsos works with
companies in order to support them in managing the effectiveness
and relevance of their position in society. This part of the
business is expanding in proportion to the increasing focus on the
effective contribution of private companies and sustainable and
socially responsible development. Furthermore, in the United
States, the United Kingdom and Europe, as well as in a number of
developing countries, both governmental and non-governmental
organisations are calling on Ipsos’ services more and more
frequently on matters relating to conduct and policy
assessment.
Revenue from research conducted among consumer
groups, clients as well as Doctors and patients registered more
modest rates of growth, which were nevertheless positive thanks to
the impetus provided by the “Total Understanding” project. Ipsos is
transforming and adapting its services to more specific requests
that place greater focus on data analysis, integration and
interpretation rather than mere data collection. Ipsos has
implemented programmes to update the services it provides, which
will start to have an impact over the coming quarters, in
particular in the Doctors and patients segment, where Ipsos is
enjoying considerable success in terms of business development. As
a result, business volumes will increase significantly by the end
of the year.
Other information regarding operations
in Quarter 1
Profitability was in line with the objectives
announced for the year.Net gearing at 31 March 2019 came out at
53.4%, down on 31 December 2018 (55.5%) but up on the same period
last year. At 31 March 2018, net gearing was recorded at just
47.1%. This increase can be attributed to the financing of the
acquisitions of GfK Research and Synthesio completed in
October 2018.
OUTLOOK FOR
2019
The industry in which Ipsos operates, which
seeks to improve people’s understanding of Society, Markets and
People, continues to evolve. For many years, it offered the only
reliable way of effectively measuring, identifying, understanding
and planning. Nowadays, it must create value where there is value
to create. This applies to Ipsos, one of the leading market
research companies, as much as it does to all others present in the
industry.
Ipsos focuses on two key objectives. Firstly, to
radically improve measurement tools, which need to become more
reliable, comprehensive and accessible. Secondly, to implement
procedures that, by integrating and analysing multiple data
sources, make it possible to effectively understand and forecast
changes in markets. As Ipsos has already identified, technological
progress is a powerful vector to boost operating performance in
industry. It is now possible to regularly put into practice
ground-breaking scientific expertise, especially expertise
developed through innovative technology. Tools such as artificial
intelligence, neuroscience, behavioural science and structural and
analytical metadata models are essential for anyone who wants to be
able to make the right decisions at the right time.
Ipsos sets itself apart from its competitors by
the range and depth of its expertise. It operates in 90 countries,
employs 18,000 people on unlimited contracts, works with 5,000
clients and undertakes 70,000 different projects each year.
Recently, as part of the “Total Understanding” project, which was
rolled out on 1 July 2018, Ipsos has bolstered its ability to
deploy its scientific knowledge, capitalise on technology and pass
on its expertise. Very few companies are able to mobilise such
extensive resources to learn about and understand changes in
markets and consumer behaviour, what binds them and why they do
what they do. Ipsos also leverages its size and the range of its
skills to expand its business.
The “Total Understanding” project was developed
by the desire of everyone at Ipsos to better meet the needs of
institutions and companies, which need to appreciate to be able to
act, understand to be able to decide and organise and align their
activities with their beliefs to be able to make progress. Ipsos’
new structure was designed with this in mind. The process was
supported by significant investment to improve operational
efficiency throughout the company, enhance the expertise of its
people and the suitability of its services. The new structure was
implemented on 1 January 2019.
The effective implementation of the “Total
Understanding” project over a period of several years must secure
Ipsos’ long-term growth prospects as well as its ability to improve
cash flow generation and margins. Based on the information it has
available, Ipsos stands by its previously announced objectives to
achieve organic growth of between 2% and 4% and a stable operating
margin at 10%+.
Next publication: 24 July 2019, 2019
Interim results
GAME
CHANGERS “Game Changers” is Ipsos’ tagline.At Ipsos we are
passionately curious about people, markets, brands and society. We
help our clients to navigate more easily within our deeply changing
world.We offer them the inspiration they need to make effective
strategic decisions.We guarantee security, simplicity, speed and
substance.We are Game Changers.
Ipsos is listed on the
Euronext Paris stock exchange.The company is also part of the SBF
120 and Mid-60 indices and is eligible for the Deferred Settlement
Service (SRD).Code ISIN FR0000073298, Reuters ISOS.PA,
Bloomberg IPS:FPwww.ipsos.com