YouGov — Trading update and acquisition

YouGov (AIM: YOU)

Last close As at 22/05/2024

902.00

−34.00 (−3.63%)

Market capitalisation

990m

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Research: TMT

YouGov — Trading update and acquisition

YouGov has issued a detailed trading update ahead of its full year results, now set for publication on 19 October, post a slight delay on finalising the tax position. Revenues of £169m are up 18% on an underlying basis, with an improvement in adjusted operating margin from 14.3%% to 15.1%, broadly as expected. YouGov also announced the acquisition of UK adtech company Rezonence (price undisclosed), which should facilitate data acquisition from a wider range of participants beyond panel, at lower cost. We will update our numbers and add FY23 forecasts post the formal results. The group is making good progress across all geographies, but notably in the key US market.

Fiona Orford-Williams

Written by

Fiona Orford-Williams

Director, TMT

TMT

YouGov

Trading update and acquisition

Trading update

Media

12 October 2021

Price

1165p

Market cap

£1,298m

Net cash (£m) at end January 2021

27.5

Shares in issue

111.3m

Free float

89.4%

Code

YOU

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

Business description

YouGov is an international research data and analytics group. Its data-led offering supports and improves a wide spectrum of marketing activities of a customer base including media owners, brands and media agencies. It works with some of the world’s most recognised brands.

Analyst

Fiona Orford-Williams

+44 (0)20 3077 5739

YouGov is a research client of Edison Investment Research Limited

YouGov has issued a detailed trading update ahead of its full year results, now set for publication on 19 October, post a slight delay on finalising the tax position. Revenues of £169m are up 18% on an underlying basis, with an improvement in adjusted operating margin from 14.3%% to 15.1%, broadly as expected. YouGov also announced the acquisition of UK adtech company Rezonence (price undisclosed), which should facilitate data acquisition from a wider range of participants beyond panel, at lower cost. We will update our numbers and add FY23 forecasts post the formal results. The group is making good progress across all geographies, but notably in the key US market.

Year end

Revenue
(£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

EV/EBITDA
(x)

P/E
(x)

07/19

136.5

20.4

13.8

4.0

39.8

84.4

07/20

152.4

24.7

15.7

5.0

32.1

74.2

07/21e

170.0

30.6

17.4

5.5

26.4

67.0

07/22e

185.0

37.0

21.3

6.5

23.3

54.7

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Within the results, Data Products (34% group revenues) started to see the benefit in the second half of the new sales structures, with underlying revenue growth of 18% implying a strong rebound in H221 (H121 revenue growth was 6%). There was a slight dip in margin from 35% to 33%, reflecting the additional costs. Data Services (27% group) was up 22% underlying as clients increased their spend on tactical work around marketing campaigns, with the US performance notably strong, up 35% underlying. Custom Research (39% group) was up 12% underlying, adjusting for the planned withdrawal of the Kurdistan project. The US was again a particularly strong market, up 24% underlying.

Investment in panel was higher at £11.7m (FY20: £8.9m), as the group expanded into new territories and the software development spend was £9.4m (FY20: £8.6m). The broader range of touchpoints with the public to knowingly share their data with YouGov is bringing down data acquisition costs and should allow the group to scale further and faster.

Management reports that the good momentum has continued into FY22 and that there continues to be a healthy sales pipeline.

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