Ipsos: Slowdown in activity in a more difficult business climate
Slowdown in activity in a more difficult
business climate
Paris, October 24, 2024 -
Ipsos, one of the world's leading market research companies,
achieved a revenue of 591 million euros in the third quarter, with
a growth of 0.5%, including -0.1% organic growth, 2.8% from
acquisitions, and -2.2% from currency effects. Over the first nine
months of the year, revenue amounted to 1,730 million euros, up by
3.3%, including 2.4% organic growth. Performance has been mixed
across different markets and hampered by an uncertain macroeconomic
and geopolitical context.
Ben Page, CEO of Ipsos, stated:
"Despite the slowdown in growth, we remain confident in the
robustness of our operational model and continue to invest in
future technologies and Artificial Intelligence. The improvement in
gross margin and effective management of our operating costs allow
us to maintain, for the fourth consecutive year, our operating
margin target of around 13%."
PERFORMANCE BY QUARTER
|
2024 vs. 2023 |
In millions
of euros |
2024
Revenue |
Total
growth |
Organic
Growth |
1st quarter |
557.5 |
4.8 % |
4.5 % |
2nd quarter |
581.0 |
4.7 % |
3.1 % |
3rd quarter |
591.0 |
0.5 % |
-0.1 % |
Revenue |
1 729.6 |
3.3 % |
2.4 % |
PERFORMANCE BY REGION
In millions
of euros |
2024
9 months revenue |
Contribution |
Q3
Organic growth |
Organic growth over 9 months |
EMEA |
793.1 |
46 % |
4.9 % |
6.7 % |
Americas |
638.6 |
37 % |
-5.9 % |
-2.5 % |
Asia-Pacific |
297.8 |
17 % |
1.4 % |
3.1 % |
Revenue |
1 729.6 |
100 % |
-0.1 % |
2.4 % |
Activity in the EMEA region
continues to show strong performance with 4.9% organic growth in
the third quarter, and 6.7% over the first nine months of the year.
The Middle East recorded double-digit organic growth. In
Continental Europe, some countries like Germany and Italy show very
good results. Conversely, a climate of uncertainty has persisted
since the summer in France, slowing client decisions and
spending.
Latin America has recorded solid growth since
the beginning of the year, but the Americas region
is penalized by an unfavorable situation in the United States.
Ipsos' situation is not isolated, and other major players in the
market research sector face difficulties in this area. Furthermore,
the performance of our service lines is uneven in the United
States: while activities with consumer goods players show good
results, others are in sharp decline, such as Public Affairs and
Health. The situation should improve in 2025 when the measures
taken by the new management team bear fruit and political
uncertainties dissipate. Excluding the United States, the Group's
organic growth stands at 5.6% since the beginning of the year and
4.0% in the third quarter alone.
Finally, the Asia-Pacific
region shows organic growth of 3.1% over the first nine months of
the year, including 1.4% in the third quarter. While the economic
context in China remains sluggish, the rest of the region is also
affected by the deterioration of the global context among major
international clients, who slowed spending.
PERFORMANCE BY AUDIENCE
In millions
of euros |
2024
9 months
revenue |
Contribution |
Q3 Organic growth |
Organic growth
over 9 months |
Consumers 1 |
846.8 |
49 % |
2.1 % |
6.0 % |
Customers and employees 2 |
358.4 |
21 % |
2.4 % |
1.1 % |
Citizens 3 |
273.6 |
16 % |
-6.4 % |
-1.6 % |
Doctors and patients4 |
250.7 |
14 % |
-4.2 % |
-3.1 % |
Revenue |
1 729.6 |
100 % |
-0.1 % |
2.4 % |
Breakdown of Service Lines by audience segment:
1- Brand Health Tracking, Creative Excellence, Innovation,
Ipsos UU, Ipsos MMA, Market Strategy & Understanding, Observer
(excl. public sector), Ipsos Synthesio, Strategy3
2- Automotive & Mobility Development, Audience Measurement,
Customer Experience, Channel Performance (Mystery Shopping and
Shopper), Media development, ERM, Capabilities
3- Public Affairs, Corporate Reputation
4- Pharma (quantitative et qualitative)
Our consumer research
activities are driving the Group's growth. This reflects the strong
performance of our service lines related to innovation, customer
experience, and advertising creation.
The citizens, doctors and
patients work is particularly hampered by the difficult
situation in the United States.
Finally, our new services
(platforms, ESG offerings, data analytics and advisory), which
account for 22% of the Group's revenue, achieved 10% organic growth
over the first nine months of the year. This growth is driven by
Ipsos.Digital, our DIY solution, which shows a 32% increase over
the same period.
PERSPECTIVES
As we announced on October 15, we now anticipate
organic growth of around 1% for this year.
The rise in gross margin, combined with good
financial discipline, allows us to maintain our annual operating
margin target of around 13%.
At the same time, the Group continues to invest
in the development of platforms and solutions using generative AI,
as well as in digital data collection processes, which are at the
core of our business. The development of Ipsos Facto, our secured
Generative AI platform, continues. As of today, 70% of our
employees are using it regularly. Generative AI is letting create
new solutions for our clients' evolving needs. This includes
innovative work with synthetic data and advanced solutions such as
persona bots and digital twins that are being piloted for product
testing and other applications.
The acceleration of our acquisitions has
strengthened our leadership position in several markets, notably in
Public Affairs. At the end of August, Ipsos launched a voluntary
public takeover bid for infas, a leader in public sector research
in Germany, to become one of the main players in the sector in that
country. To date, the operation has received approval from 89.6% of
shareholders.
Additionally, the Lac1 fund, managed by
Bpifrance, became a major shareholder of Ipsos in September. This
partnership reflects confidence in the Group's long-term growth
potential and supports its development ambitions.
Our strategic review, Horizons 2030, is now well
underway and we will announce our new plans before summer 2025.
ABOUT IPSOS
Ipsos is one of the largest market research and
polling companies globally, operating
in 90 markets and employing nearly 20,000 people.
Our passionately curious research professionals,
analysts and scientists have built unique multi-specialist
capabilities that provide true understanding and powerful insights
into the actions, opinions and motivations of citizens, consumers,
patients, customers or employees. Our 75 business solutions are
based on primary data from our surveys, social media monitoring,
and qualitative or observational techniques.
“Game Changers” – our tagline – summarizes our
ambition to help our 5,000 clients navigate with confidence our
rapidly changing world.
Founded in France in 1975, Ipsos has been listed
on the Euronext Paris since July 1, 1999. The company is part of
the SBF 120, Mid-60 indices, STOXX Europe 600 and is eligible for
the Deferred Settlement Service (SRD).
ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
www.ipsos.com
35 rue du Val de Marne
75 628 Paris, Cedex 13 France
Tel. +33 1 41 98 90 00
- Ipsos - Press release - Q3 Results - 2410 - EN
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