Ipsos: third quarter of 2016 - Positive confirmation
(Thomson Reuters ONE) -
Third quarter of 2016
Positive confirmation
For the third quarter alone:
Revenue: ?431.7 million (+0.9%)
Organic growth: +3.2%
Paris, 26 October 2016 - For the third quarter of 2016, Ipsos' revenue amounted
to ?431.7 million, up 0.9% compared with the same period last year.
Exchange rates effects, which were positive in 2015, are now negative. They had
a downward effect of 2.4% in the third quarter alone. Fortunately, they were
offset by organic growth of 3.2%, a satisfactory rate falling between the first
quarter performance of 3.7% and the second quarter's 3%.
From January to September 2016, Ipsos' revenue was ?1,265.3 million. This was a
slight increase of 0.3% year-on-year. Here again, exchange rates held back
revenue growth expressed in euros. They were negative for 3.8%, while
consolidation scope, on the other hand, had a positive effect of 0.8%. It was
therefore the resumption of organic growth that accounted for Ipsos' revenue
growth. Over nine months, at constant scope and exchange rates, Ipsos grew by
3.3%. This was the best performance Ipsos has reported since 2011.
It can be attributed to a return to more balanced growth than in 2015 -
certainly between the developed markets (+2.9%) and the emerging markets (+4.1%)
- and by the boom in New Services provided by Ipsos since the launch of the New
Way programme in 2014. The growth in New Services revenue continued at a brisk
pace: +24% over nine months, in line with the growth rate in the first half
year. This accounts for three-quarters of Ipsos' total growth, showing how
rapidly the market is changing and the capacity of those services to answer the
new needs of many clients.
+-------------------------+-------+-------+-------+----------------------------+
|Consolidated revenues | 2016 | 2015 | 2014 |Total growth for the period |
|(in millions of euros) | | | | 2016/2015 |
+-------------------------+-------+-------+-------+----------------------------+
|First quarter | 386.9 | 379.6 | 343.3 | 1.9% |
+-------------------------+-------+-------+-------+----------------------------+
|Second quarter | 446.7 | 453.3 | 412.7 | -1.5% |
+-------------------------+-------+-------+-------+----------------------------+
|Third quarter | 431.7 | 428.0 | 412.8 | 0.9% |
+-------------------------+-------+-------+-------+----------------------------+
|Total for the period from|1,265.3|1,260.9|1,168.8| 0.3% |
|1 January to 30 September| | | | |
+-------------------------+-------+-------+-------+----------------------------+
|Fourth quarter | - | 524.4 | 500.7 | - |
+-------------------------+-------+-------+-------+----------------------------+
|Full-year | - |1,785.3|1,669.5| - |
+-------------------------+-------+-------+-------+----------------------------+
Consolidated revenues by geographical area
By major region, the trends at the start of the year are confirmed by the third
quarter alone. On a comparable basis, all regions showed growth. From July to
September, the gap between Europe/Middle East/Africa (EMEA), Ipsos' slowest-
growing region, and Asia-Pacific (APAC), the best-performing, shrank somewhat,
while the third region, the Americas, maintained its same growth trajectory.
+---------------+----------+----------+----------+---------------+-------------+
|In millions of | 2016 | 2015 | 2014 | Change | Organic |
|euros |(9 months)|(9 months)|(9 months)| 2016/2015 | growth |
| | | | | | (9 months) |
+---------------+----------+----------+----------+---------------+-------------+
|Europe, Middle | 543.1 | 555.9 | 539.1 | -2.3% | 2.5% |
|East and Africa| | | | | |
+---------------+----------+----------+----------+---------------+-------------+
|Americas | 501.6 | 492.7 | 438.3 | 1.8% | 3% |
+---------------+----------+----------+----------+---------------+-------------+
|Asia-Pacific | 220.6 | 212.3 | 191.3 | 3.9% | 6% |
+---------------+----------+----------+----------+---------------+-------------+
|Total for the | | | | | |
|period from | 1,265.3 | 1,260.9 | 1,168.7 | 0.3% | 3.3% |
|1 January to | | | | | |
|30 September | | | | | |
+---------------+----------+----------+----------+---------------+-------------+
Consolidated revenues by business line
By business line, Ipsos is particularly pleased to see the renewed stability of
Ipsos Connect. Since 2015, this team has managed research on advertising content
and on digital and traditional media. Its first full financial year, 2015, was
delicate, with revenue loss greater than 5%. We stated at the time - and it
indeed turned out to be the case - that 2016 would be a year of stabilisation,
before returning to growth in 2017. Keeping to this roadmap has proven the value
of the strategy of combining media research with content research in highly
fragmented markets.
The other business lines continue to expand though, in any single quarter, one
of them may turn in a higher or lower performance than the long-term trend.
Ipsos Marketing had an excellent quarter. For Ipsos Loyalty, our business line
that studies product and service quality and customer satisfaction, the quarter
was not as good. These two "variances" do not call into question our conviction
that the year-long performance will be satisfactory for both business lines.
+-----------------+----------+----------+----------+--------------+------------+
|In millions of | 2016 | 2015 | 2014 | Change | Organic |
|euros |(9 months)|(9 months)|(9 months)| 2016/2015 | growth |
| | | | | | (9 months) |
+-----------------+----------+----------+----------+--------------+------------+
|Media and | | | | | |
|Advertising | 277.2 | 289.9 | 294.1 | -4.4% | 0% |
|Research | | | | | |
+-----------------+----------+----------+----------+--------------+------------+
|Marketing | 677.7 | 667.9 | 601.8 | 1.5% | 5% |
|Research | | | | | |
+-----------------+----------+----------+----------+--------------+------------+
|Opinion & Social | 127.8 | 128.6 | 114.1 | -0.6% | 4% |
|Research | | | | | |
+-----------------+----------+----------+----------+--------------+------------+
|Client and | | | | | |
|employee | 182.5 | 174.5 | 158.8 | 4.6% | 3% |
|relationship | | | | | |
|management | | | | | |
+-----------------+----------+----------+----------+--------------+------------+
|Total for the | | | | | |
|period from | 1,265.3 | 1,260.9 | 1,168.7 | 0.3% | 3.3% |
|1 January to 30 | | | | | |
|September | | | | | |
+-----------------+----------+----------+----------+--------------+------------+
Other information about operating conditions in the first nine months
Profitability at the end of the first nine months of 2016 is in line with the
objectives announced for the full year, namely stabilisation compared to the
2015 operating margin, in particular due to the increase in gross profit by
around 60 basis points, offset by the additional investment announced in the New
Way programme and higher provisions for bonus payments.
Net gearing at 30 September 2016, at 55.6%, is down compared to the same date
last year (67.9%), despite the rise of the dollar, in which around 60% of debt
is denominated. This reduction is attributable in particular to the good
generation of surplus free cash flow, which remains at a similar high level to
that achieved in the same period last year.
2016 Outlook
There have been few major events in the middle of 2016. This does not mean that
nothing is happening. Quite the contrary, a few rather deafening signals have
shown that we are far from having a harmonious or happy or well-balanced
society, as we prefer.
Vulgarity, resentment and exclusion are on the rise in many countries and not
just in the West. At the same time, the macro-economic data are not bad although
we have as of yet no idea if we have escaped deflation thanks to the ultra-
accommodative policies of the central banks or if we are headed for the
formation and later bursting of significant bubbles as the appreciation seen in
certain asset classes might suggest.
For the moment, at least, despite heightened competition, persistent threats in
the socio-political environment and financial uncertainties, the market for
marketing expertise is making steady growth. Within it, the research industry
has made a solid recovery, due to its strengths. Ipsos and its competitors can
proclaim, quite rightly, the skills of their staffs, the sophistication of their
approaches, the reliability and usefulness of their work and their insights. The
individuals directing public policy or developing and executing marketing
policies and choosing when and how to introduce the next "big idea", know how
much they rely on the information, ideas and contextualising that they derive
from using the services of a research company. Ipsos would like to take this
opportunity to restate the confidence in its industry - in its ability to
evolve, branch out and diversify also to meet the ever more pressing need for
information, data and ideas on a daily basis.
And we would add, once again, that Ipsos has great confidence, and takes great
pride in the three characteristics that give Ipsos its competitive advantage.
Very few of Ipsos' competitors can claim to be simultaneously global (not just
in the number of markets or countries where they operate but in developing a
global culture and a diverse and multicultural staff), specialised (not just in
a particular approach but in a set of protocols that, taken together, represent
most of what is required to fuel the information systems decision-makers need)
and independent (not just in words but, more importantly, in maintaining
ownership structures that enable the professionals who have chosen to work for
Ipsos to have their say in the choices that explain the company's present and
design its future).
Ipsos' independence guarantees its neutrality, a cardinal virtue, while the
uncertainties ruling the digital markets, too many players find themselves at
once measuring and being measured.
Assuming the present environment persists, Ipsos - on the strength of its market
share gains, competitive position and the rise of its New Services - should
experience 2016 fourth quarter growth close to that shown since the beginning of
the financial year and thus set up the right conditions for launching 2017.
Moreover, in line with what has been projected and reported, operating margin
for 2016 will be equivalent to that of 2015.
Next publication of full-year 2016 results: 22 February 2017.
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 2016 - Positive confirmation:
http://hugin.info/143536/R/2051704/767754.pdf
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
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Datum: 26.10.2016 - 17:54 Uhr
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