Online data offers irresistible insights for brands and marketers. Growing numbers are turning to YouGov (YOU), which conducts surveys, forms focus groups, measures brand perception, tracks media consumption and polls industry experts for the likes of Vodafone (VOD) and ITV (ITV). The group's first-half adjusted operating profit climbed 16 per cent to £3.3m.
Sales of data products and services jumped 15 per cent to nearly £12m, reflecting double-digit revenue growth at BrandIndex, its brand perception product, and Omnibus, its online fast-turnaround service. Data product turnover was also buoyed by the UK launch of YouGov Profiles, a data-rich online platform that helps clients such as mobile carrier EE plan advertising campaigns.
YouGov's US revenues leapt 28 per cent, and operating profit nearly doubled to £3.1m. That reflected the group's growing public profile, brisk adoption of its data offerings and boisterous demand for political polling due to the US Congressional elections. Management expect overseas progress to continue this year. Sales at the fledgling Asia Pacific business have already topped £1m.
However, total operating cash flow plunged 91 per cent to just £0.3m, sending net cash down 39 per cent. Management blame that on a very large client debt in the Middle East - now repaid - and increased project activity in the US, which increased client receivables. They expect cash generation to return to normal levels this half.
Broker Numis expects pre-tax profit of £9.0m, giving EPS of 6.7p (2014: £7.7m and 5.8p).
| YOUGOV (YOU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 130p | MARKET VALUE: | £ 131m | |
| TOUCH: | 127-132p | 12-MONTH HIGH: | 132p | LOW: 100p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | NA | |
| NET ASSET VALUE: | 60p* | NET CASH: | £3.7m | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 32.6 | -0.4 | -0.4 | nil |
| 2015 | 36.2 | 0.0 | -0.3 | nil |
| % change | +11 | - | - | - |
*Includes intangible assets of £48.2m, or 48p a share | ||||
