Ipsos - Third quarter revenues 2019
Q3 2019Another period of
growth
9 months YTD Organic
growth: 3%Revenue: €1,402.7 million, up
15.5%
Q3
(July/September)Organic growth: 3%
Revenue: €499.4 million, up 16.7%
Paris, 24 October 2019 – In the
third quarter of 2019, Ipsos generated revenue of
€499.4 million, up 16.7% on the same period the previous
year.
Scope effects due to the acquisition of four
divisions of GfK Research in the final quarter of 2018 and
Synthesio, a platform analysing social media communication,
accounted for 11.7% of this excellent performance, a higher
contribution than in the first half of the year. The currency
effect was also positive, equalling 2%. Organic growth, which came
out at 3%, was stable compared with levels recorded in the first
six months of the year. Over the first nine months of the year,
Ipsos boosted revenue by 15.5% to €1,402.7 million.
Acquisitions accounted for 10.7% and the currency effect was
positive at 2%. Organic growth remained at 3%, in line with the
first half of the year.
Consolidated revenue (in € millions) |
2019 |
2018 |
2017 |
Total YOY growth |
Q1 |
422.1 |
367.0 |
390.1 |
15.0% |
Q2 |
481.3 |
419.0 |
443.7 |
14.9% |
Q3 |
499.4 |
427.9 |
434.0 |
16.7% |
Total YTD revenue |
1,402.7 |
1,213.9 |
1,267.8 |
15.5% |
Q4 |
- |
535.6 |
512.6 |
- |
Annual total |
- |
1,749.5 |
1,780.5 |
- |
Breakdown of consolidated revenue by
region
By region, both Q3 year-on-year (YOY) and
year-to-date (YTD) growth were similar to the figures published for
the first half of 2019. Business grew across all regions, yet
performance was stronger in Asia Pacific than in the Americas or
the EMEA region. Emerging markets were more buoyant over the first
nine months of 2019 than developed countries, recording growth of
4.6% and 2.2%, respectively. However, the gap in performance
between these two zones narrows as the year goes on. The gap stood
at 3.5 points at the end of June, which was reduced to only 2.4
points by the end of September, driven in particular by standout
performances in the United States and the United Kingdom.
Nevertheless, the countries in which our business is expanding the
quickest, as has been the case for several quarters now, are India,
China, Russia and other smaller “emerging” markets.
In € millions |
20199 months YTD |
20189 months YTD |
YOY Change |
Organic growth9 months YTD |
Europe, Middle East and Africa |
607.4 |
535.2 |
13.5% |
1% |
Americas |
529.3 |
440.7 |
20.1% |
3% |
Asia Pacific |
266.0 |
238.0 |
11.8% |
7% |
Total YTD revenue |
1,402.7 |
1,213.9 |
15.5% |
3.0% |
Revenue breakdown by
segment*
The year-on-year changes remain relatively
limited and immaterial. The research segment focusing on Citizens
(public opinion, social research and the assessment of public
policies) continued to grow at the fastest pace, ahead of the
Doctors and patients segment.
In € millions |
20199 months YTD |
20189 months YTD |
Contribution |
YOY Change |
Organic growth9 months YTD |
Consumers1 |
668.5 |
615.0 |
47.7% |
8.7% |
2% |
Clients and employees2 |
337.8 |
285.3 |
24.1% |
18.4% |
2% |
Citizens3 |
186.0 |
140.5 |
13.3% |
32.4% |
7% |
Doctors and patients4 |
210.3 |
173.2 |
15.0% |
21.5% |
4% |
Total YTD revenue |
1,402.7 |
1,213.9 |
100% |
15.5% |
3.0% |
Breakdown of each business line by segment: the
analysis of revenue by segment is considered to fall under the
category of non-financial data that is susceptible to change
regarding the evolution of Ipsos’ team organisation.
- Audience 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
Analytics
- Customer Experience, Market Measurement, Mystery Shopping,
Quality Measurement, Retail Performance, ERM
- Public Affairs, Corporate Reputation
- Healthcare (quantitative and qualitative)
Overall, all regions and segments expanded,
ensuring solid, long-term growth for Ipsos.
Other information regarding operations over the first
nine months of the year
Profit margin and operating cash flow progressed
in line with our expectations that took into account the
gradual integration of the businesses taken over from GfK
(“Customer Experience”, “Experience Innovation”, “Health” and
“Public Affairs”) between October 2018 and October 2019.
This transition period was key to ensuring the continuity and
quality of data provided to clients. It came to an end as
anticipated, bearing in mind that profitability for these divisions
was lower than the rest of the Ipsos Group in 2018. Nevertheless,
it is expected to fall in line by 2020.
Net gearing at 30 September 2019 came
out at 60%, stable on the prior period at 30 June 2019
(59%) and above the rate recorded at the end of Q3 last year
(30 September 2018: 51%) due to the acquisitions made at
the end of 2018 (GfK Research and Synthesio in particular)
The company had a good liquidity position at
30 September 2019, with cash of €106 million and
over €400 million in unused credit lines.
OUTLOOK FOR 2019
The new structure Ipsos put in place mid-2018,
which has been fully operational since 1 January 2019, is
having the desired positive impact. The Total Understanding project
has been designed to achieve a specific goal – to enable Ipsos, a
business specialised in collecting and processing data about
Society, Markets and People, to forge a place for itself as a
valued partner to companies and institutions seeking to effectively
control the flow of data they purchase or receive to tailor their
methods to enhance performance.
No company or institution can cut corners when
developing or implementing a transformation project.Society and
markets are changing fast; sometimes these changes are positive,
sometimes less so. The fragmentation of opinions and uses,
reshoring or de-globalisation of businesses, volatility of tastes
and regulations, the multiplication and dissemination of ideas and
rumours – which may be true or false as well as new or old – means
private and public organisations are eager to access solid and
understandable information. They are also looking for advice and
guidance to help them make decisions and act quickly.Ipsos, like
its competitors – market research companies both big and small as
well as consulting firms and tech platforms – finds itself in a
paradoxical yet positive position.The volume of requests it
receives for services is growing at the same pace at which the type
of requests is transforming.Ipsos must produce increasing amounts
of higher quality information in a shorter timeframe to meet
narrower specifications and more specific end uses at the lowest
price possible. Ipsos also has to ensure the information is valid,
analysed, integrated and understood, whether that information is
produced by Ipsos itself or obtained in large amounts from other
sources. This is the primary purpose of the market research
industry. The aim is simple – to offer companies and
institutions the competitive advantage brought by being able to
make well-informed decisions.
The purpose of the Total Understanding project
is reflected in its name.Ipsos gives its clients the means, tools
and human resources they need to fade out the noise and block out
received wisdom and red herrings as they are required to make
ever‑more decisions on a wider range of issues, spanning greater
distances in shorter periods of timeframe and in increasingly
competitive environments.
At the Investor Day that will be held in London
on 7 November, Ipsos will present case studies outlining the
success the Total Understanding project with the company’s existing
clients, meeting their expectations and helping them move
forward.
The efforts we have put in are starting to bear
fruit. Organic growth for full-year 2019 is expected to come out at
3% or above. If exchange rates remain stable between now and
end-December, Ipsos is anticipating total revenue for 2019 in
excess of €2 billion.
In 2010, we passed the €1 billion mark,
meaning we are set to double revenue in under 10 years. In
line with previous announcements, operating margin is expected to
remain stable year on year at around 10%.
Investor Day
Thursday, November 7th, 2019 - 9:00
am
Ipsos Mori, Ipsos MORI, 3 Thomas More
SquareE1W 1YW London
It will be broadcasted on
Ipsos.com
ABOUT IPSOS
Ipsos is the third largest market research company in the world,
present in 90 markets and employing over
18,000 people.
Our passionately curious research professionals, analysts and
scientists have built unique multi-specialist capabilities that
provide true understanding and powerful insights into the actions,
opinions and motivations of citizens, consumers, patients,
customers or employees. Our 75 business solutions are based on
primary data coming from our surveys, social media monitoring, and
qualitative or observational techniques.
“Game Changers” – our tagline – summarises our ambition to help
our 5,000 clients navigate with confidence our world of rapid
change.
Founded in France in 1975, Ipsos is listed on the Euronext Paris
since 1 July 1999. 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