YouGov Confident For Rest Of Year As US & UK Drive Profit Growth

LONDON (Alliance News) - Market research and data firm YouGov PLC reported on Monday a sharp increase in profit for its first half on positive performance in both the US and the UK.

Pretax profit for the six months to January climbed to GBP4.5 million from GBP2.5 million, and on an adjusted basis this figure rose 69% to GBP10.7 million.

YouGov's revenue for the period increased 10% year-on-year, and 12% at constant currency rates, to GBP56.3 million from GBP51.4 million.

Revenue in the UK increased 15% to GBP14.5 million, and in the US by 18% at reported rates and 25% at constant rates to GBP23.3 million. Operating profit in the regions rose 89% to GBP5.8 million and 56% to GBP7.9 million respectively.

YouGov said is progressing well in its five-year growth plan laid out in 2015. Two goals, it said, were to increase the proportion of revenue from its higher margin Data Products and Data Services segments and to increase profit margins in Custom Research.

Both of these aims are on their way to being achieved, with Data Products and Data Services revenue 49% of group revenue in its first half compared to 32% in its year to July 2014. Margins in Customer Research have increased in the period to 24% from the 11% at the end of 2014.

Adjusted operating profit in Data Products and Services combined rose 58% to GBP8.3 million in the period, and the figure was up 60% in Custom Research to GBP6.9 million.

Data Products includes YouGov's flagship BrandIndex tracking service, while Data Services includes Omnibus, its fast turnaround service.

Two geographies that did not do so well in the period were Germany, the Nordics, and the Middle East. Germany adjusted operating profit fell 33% on a revenue drop of 15%, Nordic adjusted operating profit fell 34% though revenue was up 7%, and Middle East adjusted operating profit rose 14% though revenue fell 20%.

YouGov said it has been exiting businesses across these regions during the period as well as enacting restructuring programmes.

The current Data Products pipeline is robust, YouGov said, and trading since the period end has been positive, with its geographically diverse revenue streams offsetting uncertainty in the UK and Europe.

Chief Executive Stephan Shakespeare said: "We continue to deliver to the goals we set out in our five-year plan, and as we move into the penultimate year of that plan we are on track for delivering growth well ahead of our industry.

"By increasing our investment in technology we are getting more out of our data engine and our profit is growing at a higher rate. We have enjoyed a particularly strong first half. Trading during the second half has continued positively, we are accelerating our investment in technology and geographic expansion and remain confident in our prospects for the year."

Shares were up 3.0% on Monday at a price of 376.00 pence each.