It’s a good time to be in the data opinion and analysis business. YouGov (YOU) has continued to generate more revenue and cash profits, as it shifts away from a rigid focus on standard market research activities in favour of real-time data analytics. The group has taken a “big bet”, according to chief executive Stephan Shakespeare, on the willingness of clients to pay for detailed access to personal information such as live banking data. “It lets you do things that would be creepy, if it wasn't for the fact that actually the person selling it is wanting to do that,” he said.
YouGov Direct is a relatively new division aimed at linking people with companies who want to utilise specific data. Mr Shakespeare said that out of a group of 800 people, 250 said they were happy to share live banking data with a third party in exchange for a cash payment – another manifestation, perhaps, of the Facebook era.
Looking at the more established YouGov divisions, the data products section saw the biggest growth year on year, with revenue climbing 36 per cent to £41.5m, outperforming the customs research division, where revenue was up 2 per cent to £60m. However, a pointer to the evolution of the product offering is provided by data services, which comprises fast-turnaround research services. Revenue here rose 28 per cent to £37.2m.
YouGov, in true Soviet style, is now into its second five-year-plan. The first set higher revenue and profit goals and a reshaping of the business around the data products and services division. The new objectives centre on doubling revenue and the adjusted operating profit margin by 2023, while targeting adjusted earnings growth at a compound rate of 30 per cent a year.
Mr Shakespeare said this would partly come from clients using more of their product range, ergo cross-selling opportunities. “The most important thing is that... we get more and more clients using two or three of the pieces, not just one,” he said.
Broker Numis forecasts adjusted EPS of 16p for the year to July 2020, rising to 18p in FY2021, with respective adjusted cash profits at £150m and £162m.
| YOUGOV (YOU) | ||||
| ORD PRICE: | 535p | MARKET VALUE: | £561m | |
| TOUCH: | 532-538p | 12-MONTH HIGH: | 611p | LOW: 380p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 38 | |
| NET ASSET VALUE: | 104p* | NET CASH: | £38m | |
| Year to 31 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 76 | 2.7 | 3.2 | 1.0 |
| 2016 | 88 | 5.5 | 3.3 | 1.4 |
| 2017 | 107 | 7.9 | 4.4 | 2.0 |
| 2018 | 117 | 11.8 | 7.7 | 3.0 |
| 2019 | 136 | 19.5 | 14.2 | 4.0 |
| % change | +17 | +65 | +84 | +33 |
| Ex-div: | 05 Dec | |||
| Payment: | 16 Dec | |||
| *Includes intangible assets of £82m, or 78p a share | ||||
