Q3 2020
An Example of Resilience
Q3 revenue: €468.6 million
Q3 YTD organic growth: (9.9)%
Q3 organic growth: (3.3)%
CONSOLIDATED REVENUE BY QUARTER
Consolidated revenue (in millions of euros) | 2020 | 2019 | Total Periodic Change 2020 / 2019 | Third quarter growth | |||
Q1 | 428.7 | 422.1 | 1.6% | 0 | |||
Q2 | 357.3 | 481.3 | (25.8)% | (25.3)% | |||
Q3 | 468.6 | 499.4 | (6.2)% | (3.3)% | |||
Q3 YTD revenue | 1,254.6 | 1,402.7 | (10.6)% | (9.9)% | |||
Q4 | - | 600.5 | - | - | |||
Annual total | - | 2,003.3 | - | - |
Performance by region
In this region, following +0.5% in Q1 and (9.5)% in Q2, Q3 saw growth of 11% eliminating the effects of exchange rates and scope of consolidation. This recovery may continue until the end of the year even if double-digit organic growth would remain a very ambitious target.The deterioration in the health situation is thus bad news from this perspective.
In the
PERFORMANCE BY REGION
In millions of euros | Q3 YTD revenue | Contribution (%) | Organic growth Q3 YTD | Reminder H1 2020 Organic growth |
EMEA | 589.0 | 47% | (2.5)% | (9.5)% |
449.0 | 36% | (14.5)% | (15.5)% | |
216.6 | 17% | (17.5)% | (19)% | |
Q3 YTD revenue | 1,254.6 | 100% | (9.9)% | (13.5)% |
Performance by audience
An analysis of the performance by audience confirms these findings. The Q3 YTD picture remains volatile even if revenue numbers are improving month-by-month in the services in which
The change in the value of contracts in the health and public opinion fields is highly indicative of the changes
In the services dedicated to surveying doctors and patients,
In the services through which citizens and citizen groups are surveyed,
We should remind that there are three barriers
- General uncertainty, which has an impact on planned investments and on the growth of private sector companies, particularly when they are global. For at least some time, they often withdraw into their home markets to the detriment of foreign markets, particularly developing countries;
- Some sectors have been hit head on by the health crisis, with lasting effects;
- Some services require the use of very well-defined protocols, involving personal interaction between
Ipsos interviewers or analysts on one hand and those who are interviewed or observed on the other hand. Here, the difficulties performing the contracts have led to delays, and even cancellations that ultimately dragged down, at least temporarily,Ipsos revenue levels.
While these barriers are still there, their negative effects have eased since June. On one hand, as further proof of its scientific and technical capabilities and agility,
Secondly, companies, public institutions or NGOs cannot stay on the sidelines. They must take action and, at a time when the consequences are huge, their access to fresh reliable information is key.
PERFORMANCE BY AUDIENCE
In millions of euros | Revenue Q3 YTD | Contribution (%) | Organic growth Q3 YTD | Reminder H1 2020 Organic growth |
Consumers1 | 518.4 | 41% | (17)% | (19)% |
Clients and employees2 | 283.5 | 23% | (22.5)% | (21)% |
Citizens3 | 244.1 | 19% | 27% | 11.5% |
Doctors and patients4 | 208.5 | 17% | 1% | (5.5)% |
Revenue Q3 YTD | 1,254.6 | 100% | (9.9)% | (13.5)% |
*Breakdown of Service Lines by audience segment: breakdown of revenue by audience segment is non-financial data, likely to change over time in line with changes in the structure of
1- Brand Health Tracking, Creative Excellence, Innovation, Ipsos UU,
2- Automotive & Mobility Dev, Audience Measurement, Customer Experience, Channel Performance (including Retail Performance and Mystery Shopping), Media development
3- Public Affairs, Corporate Reputation
4- Pharma (quantitative and qualitative)
OTHER INFORMATION ABOUT BUSINESS CONDITIONS IN Q3
In the first nine months of 2020, the Group’s net income and operating margin ratios were at similar levels to those recorded over the same period last year.
This follows a drop of around 230 basis points in the operating margin in the first half of 2020, as a result of the slowdown from mid-March caused by the pandemic. The suddenness of this slowdown meant that it wasn’t possible to immediately cut operating costs to the same extent, because they are in part fixed and were proportionate to the growth previously forecast for 2020.
The various cost-cutting measures put in place made it possible to largely make up for this shortfall, with the company being well on the way to achieving the €109 million cost-saving plan announced for full-year 2020 (including around €42 million in salaries - plus €29 million in government subsidies – and close to €38 million in general overheads).
Free cash flow was positive and in line with forecasts for Q3, following a record first half due to the twin effect of the cash received at the start of the year following the high level of sales in Q4 2019 and the lower working capital requirements due to the decline in revenue in 2020. It stood at €177 million over the first nine months of the year.
The company invested close to
Net borrowings stood at €435 million, down from
Cash position. The cash position stood at €215 million at
In September, the company met a private debt market maturity (USPP) of
OUTLOOK FOR 2020
From June to September, our sales (net of cancellations and postponements) increased by 6% at constant exchange rates and scope of consolidation compared with last year. The company is on a favorable path that should allow it to reduce the rate of decline in its revenue over the full-year.
At the current pace, the combination of maintaining a strong order book, a proven ability to maintain decent price levels and rigorous management of our cost base should enable the company to achieve solid financial results and a good cash flow generation.
The
Indeed, companies and institutions that choose to entrust us with some or all of their research programs on the state of Society and Markets and on people’s changing behaviors and expectations know that they must have access to reliable, consistent, fresh and understandable information. In our language, "Triple A" refers to solutions that are "Appropriate, Agile, Affordable".
Every day,
Ipsos’ outlook for the remainder of the year, and by extension for 2021, is good. There is, however, one obvious caveat. It was expected that the COVID-19 pandemic would still be around for many months until effective treatments for doctors and citizens were available to counter the effects of the virus and vaccines available to stop or even prevent its spread.
It was not necessarily expected that the pandemic would increase in intensity as is currently the case in
The lesson from the spring wave of the pandemic is clear.
As of the date of publication of this press release, no major country has reintroduced widespread lockdowns. As a result, the level of new orders remains strong. No one can predict today what decisions will be taken by the health authorities in the countries most affected by the new wave of the pandemic.
In reality, our only certainty is that our business will be affected if many countries reintroduce widespread lockdowns for several weeks or even months.
That said, the various scenarios, from the most restrictive to the most optimistic, do not call into question the financial and operational strength of our company.
ABOUT
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
ISIN code FR0000073298, Reuters ISOS.PA,
Attachment
- Ipsos_Q32020_VEN
Source:
2020 GlobeNewswire, Inc., source