YouGov Shares Rise with Modest Revenue Growth
LONDON - International research and data analysis group YouGov plc reported an increase in revenue for the financial year ending July 31, 2024, according to unaudited preliminary results published today; however, it experienced significant declines in operating profit and pre-tax profit. The company's revenue rose by 30% year-on-year to £335.3 million, registering a modest underlying growth of 3%. Adjusted operating profit increased by 1% to £49.6 million.
In response to this news, YouGov's shares rose, showing a 10.7% increase at 11:31 AM London time.
However, the company's operating profit dropped by 75% to £10.9 million, primarily due to exceptional expenses related to the acquisition of Consumer Panel Services (CPS) from GfK GmbH and restructuring costs. Adjusted pre-tax profit fell by 21% to £45.0 million, while statutory pre-tax profit plunged by 91% to £4.0 million. Adjusted basic earnings per share decreased by 29% to 29.4p, while statutory basic earnings per share turned negative at 2.0p.
Despite variable performance across regions, YouGov maintained a strong balance sheet with £73.6 million in cash and a net debt/EBITDA ratio of 1.7x at the end of the period. The company also reported a 21% decline in operating cash generation, totaling £53.9 million, and announced a dividend of 9.00p per share, representing a 3% increase compared to the previous year.
Key operational highlights for the year included the acquisition of CPS, a leader in household purchasing data, for a purchase price of €315 million. YouGov also completed the acquisition of Yabble post-period, which is expected to transform the Data Products segment through Yabble's artificial intelligence platform.
YouGov launched a cost optimization plan on August 6, 2024, aiming for annual cost savings of £20 million and making initial steps of approximately £17 million. The company expects to achieve 70% of these savings in FY25, primarily in the second half of the year.
Steve Hatch, the company's CEO, acknowledged that FY24 was a challenging year but expressed confidence in the strategic progress made, including acquisitions that strengthen YouGov's product offerings and technology. Despite slower order intake and a challenging macroeconomic environment in the second half of FY24, YouGov expects to meet current market expectations for FY25, with growth predicted to be weighted towards the second half.
This financial update is based on a press release from YouGov plc.