2005 Ipsos Revenues
This strong performance can be attributed to three factors:
- Organic growth was 8.6% for the full year, and 9.3% for the fourth quarter alone. For the seventh consecutive year, Ipsos has outperformed the market, which grew an estimated 6%.
- For the first time since 2001, the currency effect was positive due to the appreciation of the US and Canadian dollars and the currencies of Latin America against the euro. The positive effect was 1.8%.
- Changes in the scope of consolidation also had a positive effect of 8.4%, reflecting the consolidation of Descarie & Complices (Montreal) and Shifrin Research (New York) on January 2005, GDMR (Canton) on 1 April, Napoleon Franco (Colombia) on 1 July, MORI (UK) on October and Understanding UnLtd (Cincinnati) on November.
Ipsos' growth was strong in the emerging regions (Asia excluding Japan, the Middle East and Latin America). Vigour was restored in North America. In Europe, growth was still weak despite strong performances in the UK and in central and eastern Europe.
| Contribution bygeographical area(millions of euros) | 2005 | 2004 | Change | of whichorganic growth | 2005 breakdown |
| Europe | 331.2 | 299.3 | 10..6% | 4.5% | 46% |
| North America | 242.6 | 210.1 | 15.5% | 8.5% | 3.4% |
| Latin America | 69.4 | 50.9 | 36.4% | 19.5% | 10% |
| Asia-Pacific and Middle East | 74.6 | 44.2 | 6.0% | 26% | 10% |
| Full-year revenues | 717.8 | 604.5 | 18.7% | 8.6% | 100% |
Note: IFRS data for 2004 and 2005
Growth also differed from one business line to another under the double impact of the dynamics of each market and Ipsos' positioning within them. As in previous years, the strongest performance was in advertising research, through an integrated organisation operating under the Ipsos ASI brand.
| Contribution bybusiness line(millions of euros) | 2005 | 2004 | Change | of whichorganic growth | 2005 breakdown |
| Advertising Research | 163.6 | 138.5 | 18.1% | 15.5% | 23% |
| Marketing Research | 388.6 | 325.7 | 19.3% | 7% | 54% |
| Media Research | 50.2 | 49.0 | 2.6% | 0% | 7% |
| Opinion and Social Research | 51.3 | 35.1 | 46% | 11% | 7% |
| Customer Satisfaction | 61.2 | 53.2 | 15.1% | 7.5% | 9% |
| Other | 2.9 | 3.0 | - | - | - |
| Full-year revenues | 717.8 | 604.5 | 18.7% | 8.6% | 100% |
Note: IFRS data for 2004 and 2005
Ipsos' IFRS operating margin will rise over the full year at the same pace as in the first half of 2005. At the same time, Ipsos has considerably strengthened its balance sheet due to improvements in free cash flow generation and the new share issue that followed the MORI acquisition in early November 2005. As a result, Ipsos has the resources and vigour it needs to build its future in a dynamic and competitive market.
Outlook for 2006Market growth is expected to remain strong at over 5% in 2006. Ipsos is targeting organic growth equivalent to the 2005 level, but with a higher operating margin. Ipsos' strategy remains unchanged and can be divided along six lines:
- Selective acquisitions in regions where Ipsos lacks sufficient commercial presence, in the key US and UK markets and in fast-growing regions, as well as in business lines to deploy a global, specialised offer. The 9 February announcement of the acquisition of Camelford Graham, the Canadian market research company specializing in qualitative research, fits within this strategy.
- Improvements in the specific and differentiated offering in its core specialisations.
- Strengthening of partnerships with global key clients.
- Greater use of new technologies, specifically the development of digital networks to collect and circulate information.
- Ongoing improvements in the quality and commitment of the workforce.
- Worldwide rollout of the Ipsos brand, a guarantee of excellent quality services.
This strategy will require new initiatives, both internally and externally. Each year, Ipsos devotes a growing share of its budget to improving the quality of its workforce, a more effective use of operating resources and the development of new products and services, in keeping with its customers' evergrowing need for information. These decisions guarantee that Ipsos will have the capacity to pursue its policy of profitable growth in the years ahead.
In 2007, as announced regularly for the past three years, Ipsos is targeting revenues of one billion euros, based on 2005 exchange rates, and an operating margin of over 10%.
For more information, please contact: Laurence Stoclet Ipsos Group CFO Tel: + 33 1 53 68 19 45 Fax: + 33 1 53 68 01 82 99, rue de l'Abbй Groult 75739 Paris cedex 15 About IpsosIpsos is a leading global survey-based market research group, with revenues of 538.5 million euros in 2002. It offers a full suite of research services, guided by industry experts and bolstered by advanced analytics and methodologies in advertising, marketing, public opinion and customer loyalty research, as well as forecasting and modeling. Member companies also offer a full line of custom, syndicated, omnibus, panel, and online research products and services.
To learn more, visit: www.ipsos.com Ipsos is listed on the Euronext Paris Premier Marchй, and is part of the SBF 120 and Next Prime Indices as well as eligible to the Deferred Settlement System (SRD). Euroclear code 7329, Reuters ISOS.LN, Bloomberg IPS FP
