Ipsos: first quarter of 2017
(Thomson Reuters ONE) -
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 |1(st) quarter|1(st) quarter|Change 2017/2016| Organic |
|area | 2017 | 2016 | | growth |
|(in millions of | | | | |
|euros) | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|Europe, Middle East| 168.2 | 166.8 | 0.9% | 4% |
|and Africa | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|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 |1(st) quarter|1(st) quarter| | Organic |
|business line | 2017 | 2016 |Change 2017/2016| growth |
|(in millions of | | | | |
|euros) | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|Media and | | | | |
|Advertising | 81.3 | 86.4 | -5.9% | -6% |
|Research | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|Marketing Research | 208.6 | 206.4 | 1.1% | 1% |
+-------------------+-------------+-------------+----------------+-------------+
|Opinion & Social | 44.7 | 40.2 | 11.1% | 12% |
|Research | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|Client and employee| | | | |
|relationship | 55.4 | 53.9 | 2.8% | 3% |
|management | | | | |
+-------------------+-------------+-------------+----------------+-------------+
|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.
OUTLOOK FOR 2017
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:
http://hugin.info/143536/R/2099776/795799.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
Unternehmensinformation / Kurzprofil:
Datum: 27.04.2017 - 17:32 Uhr
Sprache: Deutsch
News-ID 538897
Anzahl Zeichen: 12948
contact information:
Town:
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Kategorie:
Business News
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