YouGov Shares Down 43% on Profit Warning

Polling firm lowers profit forecasts for the financial year

Alliance News 20 June, 2024 | 1:05PM
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YouGov (YOU) shares lost more than 40% of their value on Thursday after reporting sales growth has been below expectations.

Shares in the London-based market research and data analytics firm plunged 43% to 465 pence each in London, giving the company a market value of £548 million.

Since half-year results for the six months to January 31, released in March, YouGov said it has seen lower sales bookings than anticipated.

As a result, YouGov now expects reported revenue for the 2024 financial year to be around £324 million to £327 million, up from £258.3 million in financial 2023.

YouGov said it had invested to boost growth in the second half of the financial year, but this was below expectations.

As a result, it now expects full-year group adjusted operating profit to be between £41 million to £44 million, down from £48.3 million in financial 2023.

Peel Hunt analyst Jessica Pok said this indicated downgrades to forecasts for financial 2024 of around 6% to revenue, and 38% to adjusted operating profit.

"This was a disappointing statement from YouGov, given the high visibility reported at the interims," she said.

YouGov on Thursday said it continues to see increased demand for its customised research solutions.

However, sales in the Data Products division have remained slow and YouGov said it continues to see a decline in fast-turnaround research services.

The Consumer Panel Services business is continuing to perform well, in line with expectations, following completion of the acquisition in January.

But YouGov said aligning CPS's revenue recognition policies with its own, meant some contribution from CPS will shift slightly into financial 2025.



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