Strong Growth In H1 2006: Revenues Rise 26.7% to 407.7 Million Euros; Organic Growth: 8.6%

Wednesday, August 16, 2006

Paris, France - In the first half of 2006, Ipsos generated revenues of 407.7 million euros, an increase of 26.7%. This strong growth can be attributed to three positive factors:

  • At 8.6%, organic growth was stronger than the 7.8% reported in H1 2005. Ipsos continued to outperform the market and most of the main international research firms.
  • Changes in the scope of consolidation had a positive impact of 14.1%, thanks mainly to the integration of MORI in the UK and Ireland, Understanding Unlimited in the US and Camelford Graham in Canada. The very strong performances of these acquisitions reflect their inherent quality and rapid integration within the Ipsos group.
  • The currency effect was also favourable at 4%.

Growth by business line

All business lines contributed to the group’s revenue growth, from the biggest contributors – Marketing Research and Advertising Research – to the smaller business lines like Media Research. The performances of the Opinion & Social Research sector were remarkable, with organic growth of 24%, thanks in part to the numerous election campaigns in the first half of the year, notably in Canada, Italy and Mexico, but mainly because Ipsos is constantly strengthening its activity in several major markets.

Ipsos Public Affairs, the dedicated brand that encompasses Ipsos’ specialized activities in this sector, will become the third business line to report annual revenues of over 100 million euros in 2006, thereby attaining the critical mass necessary to affirm its worldwide reputation and reach.

Growth by area

Acquisitions in late 2005 and early 2006 had a positive impact on Ipsos’ business in Europe and North America, while in Latin America the group benefited from a very positive currency effect.

The breakdown of organic growth by area is relatively similar from one period to the next, with a slower pace in Europe, despite a respectable performance of 6% while growth was strong in the developing markets (Latin America and Asia -Pacific, excluding Japan). The 10% growth in North America is naturally very satisfactory. Although business in the US and Canada will remain very buoyant in the second half, this figure is nonetheless at the upper end of our full-year growth forecast for the area.

Outlook for 2006

The market continues to grow at a satisfying pace. The definitive figures for 2005, published recently, show a growth rate of 7%, close to the 2004 level, stemming from a combined price effect of 2.7% and a volume effect of 4.3%. Nothing suggests that things will be different in 2006, especially at a time when the battle between brands, commercial offers as well as ideas is intensifying.

Ipsos is in an excellent position to benefit from this favourable environment, pursuing revenue growth while boosting profitability, thanks to its presence in 45 countries, its determination to round out its network and offer of specialised services, and its loyalty to 5,000 customers.

Of course, Ipsos will be even more successful if its structure and offer evolve in accordance with the new needs of customers, who are seeking to work with fewer but more powerful partners capable of developing a broader range of more elaborate and effective services, thanks in part to digital technology.

It is in this spirit that Ipsos will present its 2007-2010 development plan on 20 September, following the release of its first-half earnings report.

Ipsos already confirms its full-year targets: consolidated revenue growth of at least 20% accompanied by an improvement in operatin g margin in 2006, and consolidated revenues of at least 1 billion euros and an operating margin of at least 10% in 2007.

Ipsos will publish its first half consolidated financial statements on 19 September 2006 at 5:45 pm (Paris time)

For more information on this news release, please contact:
Laurence Stoclet
Chief Financial Officer
Ipsos
+33 (0) 141989020
laurence.stoclet@ipsos.com

Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2005, Ipsos generated global revenues of €717.8 million ($853.8 million U.S.). Visit www.ipsos.com to learn more about Ipsos’ offerings and capabilities.

Ipsos, listed on the Eurolist of Euronext – Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP


Strong Growth In H1 2006: Revenues Rise 26.7% to 407.7 Million Euros; Organic Growth: 8.6%

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Contact

Laurence Stoclet
Chief Financial Officer
Ipsos Group
+33 (0) 141989020
laurence.stoclet@ipsos.com