NEWS11 November 2009

Third-quarter revenue down at Ipsos but firm confident for 2010

Europe Financials

FRANCE— Ipsos has reported a drop in revenue for both the third quarter of 2009 and the first nine months of the year.

Revenue for the first three quarters of the year was down 3.9% to €669.6m while the figure for the third quarter alone was down 5.3% to €221.8m. Like-for-like and at constant exchange rates, revenues fell by 5.2%.

By region during the first nine months of the year revenue in Europe fell by 9.5% to €311.4m, by 2% to €196.6m in North America and by 0.5% to €80.7 in Latin America. Better news came from Asia Pacific and the Middle East where revenue rose 13% to €80.9m.

Revenue also fell across most business lines, with media research seeing an 8.5% decline to €52m. Advertising research and marketing research each saw a drop of 4%, to €144.9m and €315.5m respectively while opinion and social research revenue was down 5% to €87.6m.

The only sector to see a revenue rise was customer relationship management research, which was up 1% to €69.6m.

Despite the revenue declines, Ipsos said it had “outperformed” the market, which it claim declined by around 10% and that its commercial activity “remained very robust but has not yet resulted in an upturn in client spending”.

Looking ahead, the firm predicted that 2010 would be a year of revenue growth and that economic conditions are likely to be “more favourable” than this year.

That outlook contrasts with a prediction CEO Didier Truchot (pictured) made in August, when he forecast 12 to 18 months of weakness, with 2010 flat “at best” as the firm announced a round of job cuts.