Ipsos 2003 : continued strong growth

Revenues : 569.7 million euros
Organic growth: +9.4%

Paris, February 16, 2004. Ipsos' consolidated revenues totalled 569.7 million euros in 2003, up 6% with respect to the 538.5 million euros generated in 2002.

This growth is the result of three distinct factors:

  • Organic growth - at constant scope and exchange rates - was strong at 9.4%.
    This performance represents an improvement on the two previous years, when Ipsos achieved organic growth of 8%. Higher than the target announced at the start of the year, the growth figure is also twice that of the market growth rate. Ipsos increased its market share for the sixth consecutive year in 2003 and grew more quickly than the other international players in its industry.
    In the fourth quarter, organic growth was very close to the level seen in the previous nine months, at 9.3%. This shows that Ipsos maintains its solid growth trend going into 2004.

  • Changes in the scope of consolidation increased revenues by 6.5%.
    Most of the companies that Ipsos acquired in 2003 were consolidated either from July 1 or October 1, when their integration became effective.

  • Currency effects dragged down revenues by 10.2%.
    The rise in the euro against most of Ipsos' other currencies had a major impact in 2003. In today's context, the translation of foreign-currency revenues into euros has a substantial effect. At constant exchange rates, Ipsos would have generated revenues of around 625 million euros in 2003, up close to 16% with respect to 2002. However Ipsos' overall exposure to currency movements is very limited, since most of its costs are in the same currencies as its revenues.
    As regards industry rankings that are based on US dollar figures, Ipsos' 2003 revenues will be quoted at 644 million dollars as opposed to 509 million dollars in 2002, an increase of almost 27%.

In geographical terms, business volumes grew strongly in Asia-Pacific (particularly in China but also Australia), in Latin America (including Brazil, despite its mediocre economic environment) and North America. Europe is seeing a genuine recovery. Growth in Europe was 3% in 2003, as opposed to 1.7% in 2002. More importantly, however, European growth accelerated to 5% in the fourth quarter, from 2% in the first nine months of the year, on the back of strong performance in the UK, Southern Europe and Central Europe.

Revenues per geographic zone (in millions of euro)

2003

2002

Change
2003/2002

Organic growth

2003 revenue breakdown

Europe

289.7

261.7

11%

3%

51%

North America

210.3

210.7

0%

13%

37%

Latin America

45.2

47.7

(5%)

20%

8%

Asia – Pacific and Middle East

24.5

18.4

33%

23%

4%

Annual Revenues

569.7

538.5

6%

9.4 %

100%

N.B. Inra Belgium joined the scope of consolidation as of January 1, Partner Market Research in Taiwan, Marketing Metrix (specialising in CSM-CRM research) in the USA and Market Explorer (specialising in advertising research) in Canada as of July 1, and the research divisions of NCS Pearson and Mackay (specialising in opinion research) in Australia as of October 1.

Each business line achieved firm growth, including media research, where revenues had stagnated in 2002 due to the cyclical downturn in the advertising market. Growth is remarkable in advertising research, which, until the end of 2003, was the only specialisation to have a global, dedicated and integrated organisation, operating under the Ipsos ASI brand.

Revenues per business area
(in millions of euro)

2003

2002

Change
2003/2002

Organic growth

2003 revenue breakdown

Advertising Research

127.1

111.4

14%

20%

22%

Marketing Research

304.7

299.1

2%

7.5%

53%

Media Research

48.4

48.9

(1%)

5%

9%

Customer Satisfaction

45.9

44.4

3%

6%

8%

Opinion & Social Reserach

40.9

30.7

33%

8%

7%

Other 2.7 4.0 - - 1%
Annual Revenues 569.7 538.5 6% 9.4% 100%

2003 results and 2004 outlook.
As expected, full-year 2003 results will show a further rise in operating margin. In 2004, Ipsos expects to maintain comparable organic growth to 2003 and to achieve a further increase in operating margin.

There will be two main growth drivers. On the one hand, the market will recover, partly due to increased marketing activity in previously troubled industries like telecoms, technology and media. On the other, Ipsos intends to continue building its market share.

To achieve this, Ipsos has developed and implemented several major initiatives:

  • It is creating stronger and deeper relationships with major international clients, which want to work with companies that are able to offer a more consistent range of high-value services across their key markets.
    For the past three years, more than half of Ipsos' organic growth has been achieved with these clients through a permanent relationship managed on a global level. The extension of such a programme to a number of new accounts as well as the signing of new contracts with existing accounts will have a tangible effect on Ipsos' performance in 2004.

  • Ipsos is setting up integrated global organisations for each of the specialisations that it wants to promote to its customers, as it has already done in advertising research. In the spring, this kind of organisation will be in place for CSM / CRM research programmes, under the Ipsos Loyalty brand, and for services involving the use of market simulation and forecasting models under the Ipsos Novaction (consumer packaged goods) and Ipsos Vantis (services and durable goods) brands.

  • Ipsos is enhancing its data production and distribution systems through the use of high-performance digital networks, and broadband internet technology in particular. To this end, Ipsos has combined its specialist teams in North America and Europe under the Ipsos Interactive Services brand. Large numbers of research programmes are up and running in collaboration with leading customers, and enable Ipsos to take a strong position in a market where customers want information to be produced more quickly, with enhanced insightful and predictive information regarding consumer and customer behaviour.

N.B. FY 2003 results will be published on the evening of March 23, 2004
An International conference-call will be scheduled at 4PM (CET) on March 24, 2004.
Ipsos' schedule of forthcoming financial events in 2004 is available on this site.

99, rue de l'Abbé Groult
75739 Paris cedex 15
Tel : + 33 1 53 68 28 28
Fax : + 33 1 53 68 01 82

Contact : Laurence Stoclet, Ipsos CFO
Tel : + 33 1 53 68 19 45
Fax: + 33 1 53 68 01 82
e.mail : finance@ipsos.com