IPSOS

First quarter of 2014 - Seite 2

Consolidated revenues by business line (in millions of Euros)	1st quarter 2014	1st quarter 2013	Year-on-year change	Organic growth
Advertising Research	55.7	59.4	-6.2%	1%
Marketing Research	177.9	184.1	-3.4%	2%
Media Research	30.0	35.3	-15.1%	-9%
Opinion and Social Research	35.4	35.3	0.3%	4%
Customer and Employee   Relationship Management	44.3	45.5	-2.6%	4.5%
Quarterly revenues	343.3	359.6	-4.5%	1.5%

  
Other information about operating conditions in the first quarter

The operating margin was in line with the improvement targets announced for 2014. Net gearing was stable at 64%, its 31 December 2013 level, while free cash flow from operations was significantly higher in the first quarter of 2014 than in the same period last year.
  
Outlook for 2014

There has been no shortage of bad news in recent weeks, particularly in Europe, where a narrowing of bond spreads cannot hide the constant pressure on the prices of goods and services. We can only hope that after the European elections, which look likely to be a testing time for the European project itself, everyone will take note of the need to act to avoid deflation and to give the region's citizens new reasons to believe in a shared future.

We will also have to keep our fingers crossed when looking at China, which is working on a different growth model, at Brazil, a future global giant where it is sometimes extremely difficult to overcome the challenges to healthy business management, and at the Arab nations who are still living on oil revenues that are threatened - in the future if not straight away - by the development of shale gas and oil and by alternative energy sources.

This said, the business climate has changed recently. Making companies more efficient, improving cash flow and continuing to return cash to shareholders are still on the agenda, but there is a 'but' that was not around in 2013. This year, many companies, including Ipsos' clients, are beginning once again to work on growth plans.
After five years which saw many projects put on ice, a rebalancing of priorities is emerging, bringing more ambitious projects, a rebirth of advertising spending and a greater appetite for risk. The aversion to risk that has shaped so many decisions since 2009 seems to be out of fashion.

Our teams are receiving more approaches than before, and better approaches than before, to help develop the systems and protocols that will be used to drive new initiatives, new ideas and new markets. If this rebalancing gathers pace, companies that sell services in marketing, media, customer relationship management, brand and communication management and the development of "socially responsible companies", will find it easier to develop their own business.