Sparks - YouGov

YouGov has published results for the year to July slightly ahead of those indicated at the earlier trading update and which reflect the more difficult market trading conditions as well as internal factors. There is some encouragement in the figures from the UK and US, the latter being key to delivering on the new medium-term growth targets of £650m of revenues and an adjusted operating margin of 25%, from the £335m and 15% just reported. The acquisition of the Consumer Panel Services was a substantial undertaking, and it looks as if this is contributing at least as well as anticipated. Some aspects of the original YouGov operations have been more affected by market conditions, which in turn have highlighted areas of internal inefficiency, now being addressed. We see the more recent acquisition of Yabble having considerable potential, bringing in additional capabilities in AI that can leverage YouGov’s greatest asset – its extensive resource of consumer data from its global panellists.

Trading into the new financial year has started as the prior year closed, subdued, as marketers assess prospects against lacklustre consumer demand. With a cost reduction programme underway in the original YouGov operations, full-year expectations are unchanged, with the proviso that profitability is likely to be second-half weighted.