Last close As at 05/08/2026
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Market capitalisation
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YouGov |
Premium growth story |
Interim results |
Media |
22 March 2016 |
Share price performance
Business description
Next events
Analysts
YouGov is a research client of Edison Investment Research Limited |
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Half-year results show more strong progress in data products and services, driving group revenue growth well above market levels. Between them, key brands BrandIndex and Omnibus should account for over one-third of FY16 revenues. The US and UK markets provide the model for operations in other regions for penetrating these key products and for growing profitable custom business. The group has the cash resource to continue to invest in its offer and in delivering it efficiently, underpinning projections for continuing premium growth, readily justifying the valuation.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
07/14 |
67.4 |
7.6 |
5.8 |
0.8 |
22.9 |
0.6 |
07/15 |
76.1 |
9.1 |
6.7 |
1.0 |
19.9 |
0.8 |
07/16e |
83.5 |
10.7 |
7.6 |
1.2 |
17.6 |
0.9 |
07/17e |
91.8 |
12.1 |
8.4 |
1.4 |
15.8 |
1.1 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
BrandIndex and Omnibus continue to lead the way
YouGov’s concentration on building its value-adding syndicated products and services is meshing well with its clients’ requirements for in-depth information on their own customers and markets. BrandIndex and Omnibus are powering ahead, growing revenues 45% and 28% respectively, with the US and UK markets still fertile territory. Profiles is starting to gain meaningful traction with media planners, in line with expectations. The heavier investment phase in Profiles is working through and margin in Data Products picked up from 19% to 24%. Data services’ margin was dampened by investment in France. Custom research is also growing above market levels, with the margin notching up as a greater standardisation is built in. In Germany, the balance of business is more heavily skewed to Custom Research for historical reasons, and this has been a more difficult market. Germany is now to be run with the Nordic businesses under a regional CEO.
Reversion to normal cash conversion
Our adjusted profits and earnings forecasts are unchanged. Although implied H2 growth rates are more subdued, there is some phasing effect and the stronger US dollar has boosted revenue. H116 cash conversion reverted to more normal levels than a year ago at 90%, with working capital not suffering from the spike it faced in H115. £2.6m investment in H116 was a little under H115 and the group ended January with £10.1m net cash. Our model shows year-end net cash of £12.3m.
Valuation: Price reflects premium growth
The share price has drifted back from the highs it reached in November 2015. The quoted US-based peers are the most highly rated of the international cohort; YouGov lies at the median on 11.5x calendar 2016 EV/EBITDA, with the European players more lowly rated. The market is looking for revenue growth from the quoted sector of 5.1% in CY16 followed by 4.7% for CY17, but a further tick up in margins. YouGov is set to outstrip both indicators, justifying its comparative rating.