REG - YouGov PLC - Full-Year Trading Update

YouGovAnnouncement

06/08/2024 07:00

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RNS Number : 2677Z  YouGov PLC  06 August 2024

 

6 August 2024

YouGov plc

 

("YouGov" or "the Group" or "the Company")

 

Full-Year Trading Update

 

FY24 results expected to be slightly ahead of revised guidance

Streamlining operations for efficient capital allocation while investing for
growth

Yabble acquisition and CPO appointment to strengthen our Data Products
strategy

 

YouGov, the international research and data analytics group, today issues a
trading update for the full year ending 31 July 2024.

 

Current Trading

 

YouGov now expects Group reported revenues for FY24 to be approximately
£327-330 million and Group adjusted operating profit to be £43-46 million,
slightly ahead of our revised guidance communicated on 20 June 2024.

 

Our Research division saw strong growth in Custom Research, offset in part by
declines in Data Services as expected, resulting in the division recording
mid-single-digit growth on an underlying basis(1) for the full year. The CPS
business is continuing to perform well, in line with expectations and the
integration is progressing well. Revenue in our Data Products division was in
line with the prior year on an underlying basis(1), given stable renewal rates
and the addition of several new client wins, and we expect to return to growth
through a focussed sales approach in FY25.

 

As of 31 July 2024, the Group remains well capitalised, with approximately
£70 million in cash and cash equivalents on the balance sheet and €16
million of the revolving credit facility remains undrawn. Excluding the impact
of IFRS 16, the Group's leverage ratio(2) as of the end of the financial year
was approximately 1.8-2.0x and the Company remains well within the loan
covenants.

 

Cost optimisation plan

 

Following the trading update in June 2024, the Company accelerated a strategic
review of the core YouGov business and commenced a cost optimisation plan to
ensure efficient capital allocation going forward. As a result of the
strategic review, the Company identified several initiatives including a
reduction in support functions, discontinuing under-performing products,
scaling back in certain non-core regions and curtailing third-party supplier
costs. We expect these streamlining measures to lead to annualised cost
savings of £20 million, of which the Company has taken initial action on
approximately £15 million. It is anticipated that about 70% of the annualised
cost savings will be realised in FY25, weighted towards the second half of the
year.

 

The Board is confident these measures will allow the Group to focus on its
long-term strategic plan, continue to invest in key growth areas and we expect
to meet current market expectations for FY25.  Moving into FY25, enhancing
our core Data Products and further development of AI capabilities will be our
key investment areas as we continue to strengthen our high-quality global
panel and proprietary dataset.

 

Recent Developments

 

In support of this plan, YouGov announces the acquisition of Yabble, a New
Zealand based company pioneering the use of generative AI to deliver audience
insights. YouGov has been working closely with the Yabble team over the past
year on the development and launch of the Group's first client-facing AI
product.

 

Yabble has been developing cutting edge generative AI-powered tools
specifically for the research industry since 2019. Its products are trusted by
a range of Fortune 500 customers and major international brands, including
some of YouGov's largest clients. Further details on the transaction are
outlined in the accompanying announcement.

 

Additionally, YouGov has appointed Marc Ryan as its Chief Product Officer
(CPO) to lead YouGov's industry-leading suite of audience intelligence, brand
tracking and behavioural products. He joins in September 2024 from SCUBA
Analytics where he was Chief Product Officer and previously served at Kantar
as both its Chief Data Officer and Chief Product and Technology Officer.

1 Defined as growth in business excluding impact of current and prior period
acquisitions and movement in exchange rates.

2 Defined as net debt calculated as a multiple of the last 12 months Adjusted
EBITDA including acquisitions.

 

Enquiries:

 YouGov plc

 Steve Hatch, CEO                                                     020 7012 6000

 Alex McIntosh, CFO

 Hannah Jethwani, Investor Relations Director

 FTI Consulting                                                       020 3727 1000

 Charles Palmer / Valerija Cymbal / Jemima Gurney

 Deutsche Numis (NOMAD and Joint broker)                              020 7260 1000

 Nick Westlake / Iqra Amin

 Berenberg (Joint Broker)                                             020 3207 7800

 Mark Whitmore / Richard Andrews / Alix Mecklenburg-Solodkoff

 

 

About YouGov

 

YouGov is an international online research data and analytics technology
group.

 

Our mission is to offer unparalleled insight into what the world thinks.

 

Our innovative solutions help the world's most recognised brands, media owners
and agencies to plan, activate and track their marketing activities better.

 

With operations in the UK, the Americas, Europe, the Middle East, India and
Asia Pacific, we have one of the world's largest research networks.

 

At the core of our platform is an ever-growing source of consumer data that
has been amassed over our twenty years of operation. We call it Living Data.
All of our products and services draw upon this detailed understanding of our
27+ million registered panel members to deliver accurate, actionable consumer
insights.

 

As innovators and pioneers of online market research, we have a strong
reputation as a trusted source of accurate data and insights. Testament to
this, YouGov data is regularly referenced by the global press, and we are the
most quoted market research source in the world.

 

YouGov. Living Consumer Intelligence.

 

For further information, visit business.yougov.com

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