YouGov expects revenue of £327-330mn in FY 2024, confident for FY25

2 min read | August 06, 2024 07:26 PM AEST | By Team Kalkine Media

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YouGov expects revenue of £327-330mn in FY 2024, confident for FY25 — Image source: shutterstock.com

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YouGov (LSE:YOU), the international research and data analytics group, has released a trading update for the fiscal year ending 31 July 2024. The company now expects Group reported revenues for FY24 to be approximately £327-330 million, with Group adjusted operating profit projected to be between £43-46 million. This performance slightly exceeds the revised guidance issued on 20 June 2024.

Division Highlights

The Research division experienced strong growth in Custom Research, which was partially offset by anticipated declines in Data Services. Overall, the division recorded mid-single-digit growth on an underlying basis for the year. The CPS business continues to meet expectations, with integration progressing well. The Data Products division maintained stable revenue compared to the prior year, driven by steady renewal rates and several new client acquisitions. The company expects this division to return to growth in FY25 through a focused sales strategy.

Financial Position

As of 31 July 2024, YouGov remains well-capitalised, holding approximately £70 million in cash and cash equivalents, with €16 million of the revolving credit facility undrawn. Excluding the impact of IFRS 16, the Group's leverage ratio at the end of the financial year was approximately 1.8-2.0x, well within loan covenants.

Cost Optimisation Plan

Following a trading update in June 2024, YouGov accelerated a strategic review of its core business and initiated a cost optimisation plan to ensure efficient capital allocation. This review identified several key initiatives, including:

Reduction in support functions
Discontinuation of under-performing products
Scaling back operations in non-core regions
Curtailing third-party supplier costs

These measures are expected to result in annualised cost savings of £20 million, with initial actions already taken to realise £15 million of these savings. Approximately 70% of the annualised cost savings are anticipated to be realised in FY25, predominantly in the second half of the year.

Strategic Focus and Future Outlook

The Board is confident that these optimisation measures will enable YouGov to focus on its long-term strategic plan and continue investing in key growth areas. For FY25, the company plans to enhance its core Data Products and further develop its AI capabilities, aiming to strengthen its high-quality global panel and proprietary dataset. YouGov expects to meet current market expectations for FY25.

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