29th Oct 2024 11:23
(Alliance News) - YouGov PLC on Tuesday reported revenue ahead of expectations as it reaffirmed its guidance for 2025.
In the year to July 31, the online research data and analytics technology group said its revenue increased by 30% to GBP335.3 million from GBP258.3 million the prior year, owed to the increased contribution from Consumer Panel Services.
YouGov acquired CPS from Nuremberg, Germany-based GfK GmbH in January this year for EUR315 million.
This performance surpassed the previous guidance given in August of full-year revenue expectations of between GBP327 million and GBP330 million.
Shares in the YouGov climbed 13% to 450.00 pence on Monday morning in London.
Pretax profit for the firm dropped 91% to GBP4.0 million from GBP44.7 million on-year after the firm accounted for separately reported costs, including acquisition-related costs amounting to GBP17.3 million.
Adjusted profit before tax fell 21% to GBP45.0 million from GBP57.2 million the year prior with this owed in large part to interest expense on the new debt facility entered into this financial year.
In line with its progressive dividend policy YouGov recommended a 2.9% increase in its dividend to 9.0 pence a share, up from 8.75p the previous year. This is to be approved by shareholders at the firm's annual general meeting on December 5.
Following on from its cost optimisation plan announced in August, YouGov anticipates that 70% of its annualised cost savings will be realised in financial year 2025, but will be second-half weighted.
YouGov Chief Executive Steve Hatch said: "Financial year 2024 has been a year of transition, challenge and change. We have made significant strategic progress in the financial year.
"We completed the acquisitions of CPS and KnowledgeHound which strengthen our product offer and technology as well as increasing our addressable market. Consistent with this, post-period end we acquired Yabble, which will transform our Data Products segment using generative AI.
"Our clients continue to value the quality of our products and services, this is reflected by our high renewal rates and strong customer relationships. As we enter financial year 2025, we anticipate that momentum will build throughout the year, weighted towards the second half, as the benefits of our cost optimisation plan and new commercial leadership are realised.
"The macroeconomic environment remained challenging across the wider market research industry and for YouGov, while internal execution also contributed to the challenges we faced. We acted quickly over the summer and I am confident that we have put the right initiatives in place as we focus on the execution of our long-term strategic plan.
"We consequently expect YouGov to achieve growth for financial year 2025 in line with current market expectations, and remain confident in the group's ability to deliver on its long-term ambitions."
By Christopher Ward, Alliance News reporter
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