(AOF) – Ipsos announces the acquisition of Omedia, a multi-specialty research company based in Senegal, Côte d’Ivoire and Mali. This company carries out a wide range of marketing studies, as well as audience measurement, and advertising monitoring for press and digital media. Its client portfolio includes international companies (including large French organizations), institutions and local clients. Omedia previously belonged to Mediametrie, the French leader in media audience measurement.
By investing in Omedia, Ipsos will develop its business in French-speaking African markets, with its existing clients, and build on strong operational capabilities in the region.
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Key points
– Second worldwide market research and public studies created in 1975;
–
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revenue of €2.4 billion generated 43% in Europe-Middle East-Africa, 40% in the Americas and 17% in Asia-Pacific;
– Activity divided between 4 major audiences: consumers for 74%, customers and employees (20.5%), citizens (16%) and doctors and patients (16.5%);
– “Total understanding project” economic model: aiming to generate annual growth higher than that of the market (3%), extension of the network in the United States, China, the United Kingdom and France, by broadening the customer base and improving the competitiveness of services;
– Split capital (10.52% of the shares and 18.93% of the voting rights for the founder and the managers), the founder Didier Truchot chairing the board of directors of 12 members and Ben Page ensuring the general management;
– Very healthy balance sheet with €1.5 billion in shareholders’ equity against €69 million in debt and €866 million in cash.
Challenges
– 2025 plan “Best people and best technologies”:
– recruitment of the best experts, those in data, increasing from 1,500 to 2,000,
– organic (5 to 7% per year) and external growth and doubling of investments in data analysis,
– operating margin above 13%;
– Global Innovation Strategy Program to fight competition from IT and communication services companies in data collection:
– via neurosciences and information repositories, offer of 4 services: Measuring differently, Having the data in real time, Analyzing Big data, Offering support-based services,
– via the Ipsos Knowledge Center (analytical R&D, value-added analysis, etc.),
– via the major platforms Ipsos Digital, Simstore, Communities, Askia, Infotools and Synthesio;
– Environmental strategy defined in the annual “Taking Responsibility” programs covering almost all of the group’s subsidiaries and aiming for carbon neutrality by 2035, with 2023 as a milestone: 15% reduction, vs. 2019, in CO2 emissions per employee;
– Continued acquisitions of small digital businesses;
– Good visibility with an order book for 2023 up 8% at the end of September.
Challenges
– Lack of visibility and seasonality of the activity (57% of revenues in the 2nd half);
– Impact on the operational profitability of investments in automation;
– Supply disruptions and inflation at customers: rebound in demand for information;
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Confirmation of expectations of a rebound in activity from the spring;
– After a 6.3% increase in revenues, 2023 objective: 5% revenue growth and operating margin rate of around 13%;
– 2022 dividend up to €1.35 and share buyback program of €50m.
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A healthy global market
According to Magna (Interpublic Group), growth in the global advertising market was limited to 1% year-on-year during the first quarter against a dynamic start to the year in 2022. However, for the full year, the company expects much higher growth, driven by digital. This performance is the result of China’s economic rebound since the end of the “zero Covid” policy. In the first quarter, advertising spending jumped in this country by 6% over one year. Elsewhere, the expected performance is lower for 2023: 4.2% growth in Europe (including 2.8% in France) and 2.5% in North America (4.2% if we exclude falling political advertising without an election). The good results of the three world leaders (the French Publicis, the British WPP and the American group Omnicom) in the first quarter reflect this market development.