Ipsos sees subprime crisis helping research firms

PARIS (Reuters) - French market research and opinion poll firm Ipsos (ISOS.PA) sees the U.S. subprime mortgage crisis bringing more business as financial services companies seek to avoid repeating mistakes.

Ipsos, which has bought a 70 percent stake in South African market research firm Markinor, also said on Wednesday it would continue to grow through targeted acquisitions and in North America.

Asked if the subprime mortgage crisis presented a risk for Ipsos, which makes 7 percent of its revenue from clients in the financial services sector, co-chairman and founder Didier Truchot said: "There is no immediate impact on the business of research firms."

He added: "For research firms, it is on the contrary a great opportunity to work with clients, notably in France, Britain and also China to help the management of these companies implement development plans and avoid finding themselves in situations as absurd as the one we currently face."

On Tuesday, Ipsos reported a 15.5 percent rise in first-half operating profit, due to higher revenue and cost control.

It also kept its 2007 goals for underlying sales growth of at least 9 percent and a further improvement in operating margin from 9.3 percent in 2006.

Ipsos achieved underlying revenue growth of 10 percent in first-half 2007, outpacing British rival Synovate's AGS.L 9.3 percent rise and the sector's average of 6 percent.

Truchot would not give a precise revenue goal for 2007 saying it hinged on acquisitions and foreign exchange rates.

"There will be other acquisitions before the end of the year," he said without elaborating.

Chief Financial Officer Laurence Stoclet said with a cash position of 63.2 million euros at the end of June and credit lines of some 60 million, Ipsos had the means to finance its future acquisitions.

Jim Smith, chairman and CEO of Ipsos North America, said "acquisitions will play a major role in North America".

With revenue of over 300 million euros, North America makes a third of Ipsos's global revenue, he said.

North American operations revenue growth including acquisitions was 20 percent in 2006 and will again be above market growth in 2007, Smith said.

Ipsos targets group revenue growth of some 15 percent per year between now and 2011, half of it coming from underlying growth, and an operating margin of 12 percent by 2011.