Strong growth in third quarter 2004

Nine months to September 30:
Revenues at 427.8 million euros
Organic growth at +8.2%

Paris, November 15th, 2004. Ipsos generated consolidated revenues of 427.8 million euros in the first nine months of 2004, an increase of 6.7% over the same period in 2003.

At constant scope and exchange rates, growth was 8.2%, once again ahead of the market growth rate and that achieved by other international research companies. Movements in exchange rates dragged revenues down by 4%.
The scope of consolidation has changed little since 2003, with newly-integrated companies accounting for 2.3% of total revenues. South Korean company Active Insights entered the scope of consolidation on January 1, 2004, and TQA (Australia) and Hispania Research (Puerto Rico) on July 1, 2004.

Consolidated revenues
(in millions of euro)

2004

2003

2002

Q1

127.1

118.6

108.4

Q2

158.9

145.7

136.1

Q3

141.2

136.6

129.1

Total from January 1 to September 30
427.8
400.9
373.6
Q4
-
168,8
164.8
Full-year
-
569.7
538.4

 

In Ipsos' various regions and business lines, trends seen in the first half of the year remained in place in the third quarter.

 

Contribution to revenues at September 30 according to sector of activity

Million Euros

2004
(9 months)

2003
(9 months)

% Change
2004/2003

Organic growth
2004/2003

Advertising Research

96.2

89.4

8%

13%

Marketing Research

232.1

213.6

9%

7.5%

Media Research

35.5

35.1

1%

2%

Customer Satisfaction

38.6

33.1

16.5%

9%

Opinion & Social Research

22.5

26.2

(14%)

4%

Other

2.9

3.5

-

-

Total from January 1
to September 30

427.8

400.9

6.7%

8.2%


Contribution to revenues at September 30 according to geographical area

Million Euros

2004
(9 months)

2003
(9 months)

% Change
2004/2003

Organic growth
2004/2003

Europe

211.1

200.8

5%

7%

North America

152.5

152.7

0%

6%

Latin America

37.1

32.8

13%

22%

Asia – Pacific / Middle East

27.1

14.6

85%

20%

Total from January 1
to September 30

427.8

400.9

6.7%

8.2%

 

- The renewed growth trend in Europe remained in place, despite a slight slowdown compared to the first half of 2004, due to a less favourable base for comparison. As previously announced, Europe will once again see a significant rise in revenues after two stable years, with revenue growth in excess of 5%.
- In North America, organic growth stabilised at 6%. The proportion of revenues coming from online data collection systems is continuing to rise, and is now above 50% in some businesses. This trend is putting temporary pressure on growth in billings.
- Other regions are continuing to post remarkable revenue growth. This highlights the strength of the Ipsos development model, which combines strong local positions in major countries in Latin America, Asia-Pacific and the Middle East with sustained integration efforts as regards both major international clients and substantial local and regional customers.

Outlook for end 2004 and 2005
Ipsos will benefit from the integration of JSR in Japan in the fourth quarter of 2004. Ipsos organic growth should be close to levels seen in the previous few quarters.
As regards 2005, Ipsos is confident about the effectiveness of its approach, which is based on three principles:

- To strengthen relationships with major international clients with which Ipsos has been working for many years.
- To focus on a specific and constantly evolving range of services, supported by an international organisation that is arranged by business line and covers today's major disciplines, i.e. advertising effectiveness measurement, brand management, innovation processes and customer relationship management.
- To build strong, specialised and highly-motivated teams that work closely with clients and are able to help them make marketing-related decisions.

Ipsos' pursuit of these principles has consistently paid off quarter after quarter, and will continue to do so in the long term. This should enable Ipsos to attain its business and financial targets in 2007. Ipsos' aim is to be recognised by its clients as one of the world's largest and best companies in its specialisations, as well as generating revenues of one billion euros (based on an exchange rate of 1 dollar to the euro) and operating margin of over 10%.