First half results 2004

Further improvement in results
Net profit up 14.3%

Paris, 21 September 2004. Ipsos continues to realise its ambition of combining revenue growth with higher margins.

Business levels
Revenues remained firm in all regions and all business lines. Overall, revenues came in at 286.0 million euros, an increase of 8.2% with respect to the first half of 2003.
Currency effects dragged revenues down by 4.2%, due to Ipsos' exposure to the dollar zone and Latin America. At constant exchange rates, revenues would have risen by 12% to 296 million euros.
The integration of new companies accounts for a 3.9% increase in sales.
Organic growth remained high at 8.6% in a market whose overall growth rate reaches 5% per year. We highlight the excellent performance in emerging-market regions - such as Asia (particularly China) and Latin America - where many customers are now investing and where Ipsos has an ever-stronger operating base.

In millions of euros

First half

Full year

June 2004
June 2003

Change

2003

Revenues

286.0
264.3

+8.2%

569.7

Gross profit

166.0
155.0

+7.1%

335.7

Operating Profit

Operating Profit / Revenues

Operating Profit / Gross Margin

22.8

8.0%

13.7%

20.9

7.9%

13.5%

+9.3%
50.7

8.9%

15.1%

Net Interest charge

(2.4)
(3.1)

(20.6%)

(7.1)
Net income, Shareholders' part*
13.4
11.7

+14.3%

30.3

*Results are stated before goodwill amortisation.

Profitability
During the first half, operating profit rose by 9.3%, slightly faster than revenues, and hit a record 22.8 million euros, equal to 8.0% of consolidated revenues. Currency movements had a significant impact. If exchange rates had remained at their first-half 2003 level, operating profit would have come in up 14% at 24 million euros.
Operating profit was pulled in two directions. On the one hand, it was boosted by organic growth. On the other, it was held back by Ipsos' active policy of recruiting customer-facing staff. The aim is to win market share through high-value-added solutions, particularly as part of international contracts. Ipsos has also strengthened its regional management teams, particularly in Asia, in order to ensure the smooth integration of recently-acquired companies in South Korea, Australia and now Japan.
The first half brought an extraordinary charge of 2 million euros, relating to the accelerated write-down of re-arranged obsolete office space consecutive to the decision to merge Ipsos operations in France into a single site in the Paris area. Despite this, net profit (group share) posted double-digit growth for the 10th consecutive half-year period, rising by 14.3% to 13.4 million euros.
At constant exchange rates, net profit (group share) would have grown by 21% to 14 million euros.

Financial position
Ipsos' debts ended the period at 162 million euros, the same as a year previously. This stability came despite the ongoing targeted acquisition programme and the seasonal rise in working cash requirements.

Outlook for 2004 and 2005
For the rest of 2004 and 2005, Ipsos will continue to grow faster than the market, with a good balance between Europe and North America and an excellent performance in other regions. Ipsos today announced the acquisition of Japan Statistics & Research, a major Japanese research company that leads the Japanese market in access panel-based research. This illustrates Ipsos' desire to act quickly to build a solid Asian organisation that is consistent with its business plan in terms of services and capacity.
In 2005, Ipsos will continue to develop, and will improve profitability at a pace that enables it to hit its target, i.e. generating revenues of 1 billion euros and operating margin of over 10% in 2007.
Ipsos has five priorities in attaining this objective.

  • · It will make selective acquisitions in Asia-Pacific, but also in the key markets of North America and the UK.
  • · It will pursue its programme of enhancing and differentiating its offering in its five business lines.
  • · It will step up its partnership strategy with major international customers.
  • · It will increase the proportion of research carried out online.
  • · It will continue to pay close attention to the quality and professionalism of its staff, thereby ensuring an excellent service and maintaining of its strong reputation.

 

* Based on an exchange rate of 1 euro to 1 US dollar

 

To download the Consolidated accounts as at June 30th, 2004, please click here.

To download the release in its PDF version click hereafter :
French version, English version.

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Contact: Laurence Stoclet
Phone : +33 1 41 98 90 20
e.mail : laurence.stoclet@ipsos.com