NEWS23 July 2020

Ipsos H1 revenue hit by Covid-19

Covid-19 Europe Financials News

FRANCE – Ipsos has posted revenue of €786m in the first half of the year, down 13% year-on-year, with performance in the second quarter ‘heavily affected’ by Covid-19.

Covid-19 coronavirus data graph_crop

The company’s organic growth in the first six months of 2020 was -13.5%, according to its H1 results statement. While its performance in the first quarter was close to flat, revenue in April to June was down by 25.8% year-on-year at €357m.

Sales were down across EMEA, the Americas and Asia-Pacific in H1, with the latter experiencing the biggest fall with a 19% decrease in revenue year-on-year.

The company’s operating profit was €25m, representing 3.2% of revenue versus 5.5% in the first half of 2019. Net profit was €1.3m, compared with €18.7m in the same period the year before.

Ipsos said it had been ‘adversely affected’ by the business performance of clients, uncertainty over the future, and obstacles preventing work requiring close contact between people.

Revenue from consumer research, including brand health tracking, was €335.6m, with organic growth down 19% year-on-year. Citizens research, including public affairs and corporate reputation work, was up 11.5% in terms of organic growth, while pharmaceutical research covering doctors and patients was down 5.5%.

The general shareholders’ meeting, held on 28th May, approved a dividend of €0.45 per share, totalling €19.8m and cut in half from the €0.89 per share initially considered.

According to the results statement, the company’s order book turned ‘slightly positive’ in June, with cancellations and postponements falling, and new public contracts associated with the pandemic. However, Ipsos said it is ‘impossible’ to accurately forecast its revenue for the remainder of the year.