23rd Mar 2015 10:16
LONDON (Alliance News) - Market research firm YouGov PLC Monday posted a swing to a pretax profit in its first half, boosted by a strong performance in US on the back of the mid-term congressional elections, and cited the upcoming UK general election as a growth opportunity.
YouGov posted a pretax profit of GBP16,000 for the half year to end-January, compared to a pretax loss of GBP427,000 a year before, as revenue rose to GBP36.2 million from GBP32.6 million.
In the UK revenue growth was up 6%, as its BrandIndex and Omnibus products helped offset a decline in Custom research. Operating profit in this segment was reduced as a result of investment ahead of the launch of its YouGov profiles product last November.
The first UK Profiles subscription sales were made to advertising and media agencies in early 2015, YouGov said. It will launch the product in the US and Germany later in the year.
Revenue in the Middle East fell 3% in the half year, as strength in the Dubai and Saudi operations was offset by a decline in Kurdistan caused by changes in client requirements.
In Germany and France, the depreciation of the euro held back results, although both segments saw a rise in revenue at actual exchange rates.
In its Nordic business, revenue fell 7% as YouGov continued to take steps in improving the profitability of the business.
YouGov's newly formed Asia Pacific operations posted GBP500,000 in revenue for the half year. The company has bolstered investment in the region, opening a fourth office in Indonesia last September and recruiting staff.
The company provides its information by getting responses from groups of internet users it calls its "panels". The company saw its total panel size rise to 3.29 million as at the end of January, compared to the end of July 2014.
It proposed an interim dividend of 0.8 pence, up from 0.6 pence, in line with its progressive dividend policy.
"The second half has started well and we are on track for the full year. Looking beyond the current year we have a strong base from which to deliver our ambitious plans for organic growth over the next five years," said Chief Executive Stephan Shakespeare in a statement.
The company noted that the UK general election should should offer it more opportunities to demonstrate its products, and provide media and public exposure for its brand.
Edison Investment Research analyst Fiona Orford Williams agrees, saying that the forthcoming UK election will "make sure that the brand stays clearly in the forefront here in the coming weeks".
Shares in YouGov are trading up 3.6% at 128.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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