Editoria e Media
Ipsos: First-half 2016
- In the first half of 2016, Ipsos' revenue amounted to EUR833.6 million, almost stable compared with the first half of 2015. Exchange rate effects were negative, at 4.5% over the half-year, slightly more than offset by scope effects at 1.3% (attributed to the integration of RDA in Detroit on 1 July 2015) and in particular by organic growth of 3.3%.
Results for the second quarter alone (3% of organic growth) confirm the observation made at the end of the preceding quarter: in 2016, Ipsos is seeing organic growth in its revenue that is significant, both in terms of its size and duration, satisfactory in terms of content ("New Services" represent 2/3 of total growth) and healthy, since it has been accompanied also by an improvement in more strictly financial indicators such as generation of free cash flows.
In 2016, all geographic regions are experiencing growth. Performance in the regions has been satisfactory (EMEA), good (Americas), and even excellent (Asia-Pacific). This is also the case by market type: the most developed markets have grown by 2.8% at constant scope and exchange rates, buoyed by the United States, Japan and Australia, among others.
This also applies to emerging markets, which, in 2015, due to the effects of downturns in certain crisis-hit markets, particularly Russia, Brazil and the Middle East, impacted Ipsos' results. However, in the first half of 2016, the emerging markets have grown by 4.4% on average, seeing better growth than in the developed markets, as expected, and much better than the previous year, as was hoped.
Similarly, all business lines have improved their performance compared with the previous period. Those that grew in 2015, have seen their growth improve further in 2016. This is the case for marketing research, from +0.5% to +4%, opinion research, from +2% to +4%, and services dedicated to Customer Relationship Management (from +0.5% to +7%: a record half-year improvement for a business line since 2011!). Ipsos Connect, which manages since 2015 in a single organisation advertising content and digital and traditional media channels related research, had a difficult start its first year of existence, with a 6.5% fall in business at constant scope and exchange rates. 2016 will be a year of stabilisation. In the first half of 2016, its business is almost stable with organic growth of -1%, the low point of the expected change.
, which is calculated by deducting external direct variable costs attributable to contracts from revenues, grew by 1.6%. This continued growth (65.4%, versus 64.4% in the first half of 2015) is due to both the digitalisation of data collection and growth in New Services, where gross margins are often higher. It is also the sign of the ability to maintain prices in all countries.
As regards operating costs, expenses are up 1.0% and decreased slightly as a percentage of revenue and gross profit.
The cost of variable went from EUR5.9 million to EUR5.0 million. As expected, since the programme reached its peak in 2014, it no longer has an effect on the change in operating margin.
are under control and fell 2.4%.
In the second half of the year, some additional expenses are expected to appear in in relation to the "New Way" programme, for which Ipsos earmarked EUR10 million in additional current investments in 2016, of which EUR4.4 million was spent in the first half of 2016 (45% for payroll expenses and 55% for overheads).
Other consist mainly of the impact of exchange rate transactions on operating account items, which were a negative EUR0.2 million over the half-year period, whereas they were a positive EUR1.3 million in the first half of 2015.
In total, the Group's
was EUR53.8 million euros, or 6.5% of revenue, for an increase of
80 basis points over the same period last year, thanks to the re-establishment of strong organic growth for revenue and good gross profit.
Below the , the amortisation of intangibles identified on acquisitions concern the portion of goodwill allocated to client relationships during the 12-month period following an acquisition, recognised in the income statement over several years, in accordance with IFRS. This charge came to
EUR2.5 million, compared with EUR2.6 million the previous year.
The balance of was +EUR8.7 million, compared with a net expense of EUR11.2 million in the previous year. It comprises unusual items not related to operations, and includes acquisition costs, as well as the costs of the restructuring plans.
It includes in particular, in the first half of 2016, a net gain of EUR15.4 million in relation to the repayment from Aegis in February 2016 bringing an end to all claims and legal proceedings regarding the dispute arising from the acquisition of Synovate in 2011. In addition, a total of EUR6 million in restructuring and streamlining expenses were recognised, some of which are related to the "New Way" programme.
. The net cost of interest amounted to EUR10.2 million, compared with EUR12.1 million, down 15.4%, due to the drop in Group net debt and to a fall in its credit conditions.
. The effective tax rate on the IFRS income statement was 25.6%, compared with 25.2% for the previous year. As in the past, it includes a deferred tax liability of EUR2.2 million (compared with a deferred tax liability of EUR2.4 million in the first half of 2015), cancelling out the tax saving achieved through the tax deductibility of goodwill amortisation in certain countries, even though this deferred tax charge would fall due only if the activities concerned were sold, and which is restated accordingly in adjusted net profit.
totalled EUR35.2 million, an increase of 173.5% from the first half of 2015.
, which is the relevant indicator used to measure performance, came to EUR33.0 million, up 8.2% compared with the first half of 2015.
. Cash flow generated by operations, net of current investments, rose 3.3% to
EUR55.5 million, against EUR53.7 million in the first half of 2015. This was due to careful management of the change in working capital requirement, at a new record level since the Ipsos IPO some 17 years ago on
1 July 1999.
In detail:
- Operating cash flow stood at EUR62.4 million, against EUR55.4 million, up 12.6% in line with the rise in operating profit;
- The working capital requirement improved by EUR26.2 million;
- Current investments in property, plant and equipment and intangible assets, primarily consisting of IT investments, are EUR7.7 million, versus EUR12.2 million in the first half of 2015.
Concerning , Ipsos invested EUR36 million over the half year in acquisitions, primarily through the buyback of non-controlling interests in a US company and in certain emerging countries (including Russia and Indonesia).
Ipsos also invested EUR6.2 million in a share buyback programme in order to limit the dilution effects of its bonus share allocation plans.
Finally, the repayment from Aegis of £20 million (EUR26.2 million) in February 2016 was classified as a decrease in non-current investments in the cash flow table.
totalled EUR932 million as at 30 June 2016, compared with EUR945 million published as at 31 December 2015, after deduction of the EUR34 million in dividends paid on 5 July 2016.
totalled EUR503 million at 30 June 2016, compared with EUR552 million at 31 December 2015, thanks to the strong operating cash flows mentioned above.
The net gearing was 53.9%, compared with 59.8% at 31 December 2015.
.
at the end of the half-year period was EUR126.7 million, compared with
EUR151.6 million at 31 December 2015, giving Ipsos a good liquidity position. The Company also has over EUR300 million available through credit facilities.
China seems to be able to manage its progress on the difficult path from one economic model to another. It will be in India where FoxCOM will build its next eight factories and provide another million low-skilled jobs. China will be developing a 150-200-seat plane that will be a real competitor to single-aisle Boeing and Airbus aircraft.
Brazil is still facing a difficult situation but the Olympic Games will be happening as planned next month in Rio, with the Russian flag present among many others. It is hoped that they will be a success, and will prove that a great country, like a great team, is always very resilient.
The "United" Kingdom will leave the European Union, but will be more European than ever. Late night negotiations in Brussels will once again be on the agenda.
These constitute three of the main markets where Ipsos deploys significant resources, generates a large volume of business and grows with its clients thanks to New Services that are more immersive, more analytical, more connected, new relationships that are closer, more useful and easier to promote.
These three markets are symbols of a paradoxical time that presents immense challenges and extraordinary opportunities. There is no way to assert that all will go well, everywhere, all the time. There is however no reason for us to describe a world only in black terms, even if it has rarely been so anxiety-provoking, uncertain, dispersed even divided by emotions often understandable but sometimes dangerous. This is the paradox of a civilisation where information which is not always right and relevant is nevertheless, immediate, shared and omnipresent.
In summary, invention, diffusion, activation and fragmentation are the key themes of the times and they justify the maintain of marketing spending at a high level. Those who manage these budgets know that they will be efficient only if they understand the market well, know consumers and clients well, understand socially responsible approaches and their increasing influence on consumer behaviour, to better assess and anticipate how existing or new competition is behaving, as well as the likely consequences.
The research industry, in all its dimensions, is supported by the need to measure well, to better understand, and even to better anticipate what our reasoning, our experience, our emotions or our networks are going to make us do (or not). This industry, of which Ipsos is a proud member, has many assets. It is essential to its clients - businesses both large and small, institutions and organisations of all types - that operate and are willing to build their successes in those markets that are open, connected, volatile and competitive.
Thanks to its knowledge, its skills, its resources, including and above all thanks to its teams in 87 countries and 250 cities, Ipsos brings to its clients: its multiculturalism, its experience of working closely with its clients, its capacity to develop new services and make them accessible, created from a strong command of today's technology and sciences.
Moreover, Ipsos holds firm to its status - and its reality - as a business that is independent and neutral. At a time when everything becomes more fluid, competitive, and demanding, being a global business that is specialised and independent is it's a source of pride and its competitive edge.
Ipsos' outlook must be seen in the context of a complex "macro" environment in which companies operate won't deteriorate more. If this is the case, 2016 will be a good year, the best since 2011 for Ipsos. It will be marked by several achievements in terms of market gains, an upswing from New Services, strengthening the teams and a good cash flow generation. Lastly, the operating margin will be stable, at the same level as in 2015, after an additional EUR10 million in operating costs for the "New Way" programme and a more aggressive variable compensation scheme.
www.ipsos.com
www.ipsos.com
Ipsos is an independent market research company controlled and managed by research professionals, with offices in 87 countries. Founded in France in 1975, Ipsos ranks third in the global research industry. Ipsos has been listed on the Paris Stock Exchange since 1999.
Adjusted net profit is calculated before non-cash items linked to IFRS 2 (share-based payments), amortisation of acquisition-related intangible assets (client relationships), deferred tax liabilities related to goodwill on which amortisation is tax-deductible in certain countries and the impact net of tax of other non-recurring income and expenses and the non-monetary impact of changes in puts in other financial income and expense.
Copyright GlobeNewswire
Attachment(s)
http://hugin.info/143536/R/2030843/755495.pdf
Regulatory News
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: %s via Globenewswire