- Operating profit below expectations
- Slowdown in data products sales
- Challenges in Europe, Middle East and Africa
Shares in YouGov (YOU:AIM) were down 38% to 518p in morning trading as the market research and polling outfit said it had seen lower bookings than anticipated following its half year results and cut its full year 2024 guidance.
The company now expects group reported revenue for full year 2024 to be in the range of £324 million to £327 million compared with consensus forecasts of over £340 million.
PROFIT FORECAST CUT
Although the international online research and data analytics group saw an improvement in trading in the second half, growth was below expectations and the company now expects full-year group adjusted operating profit to be between £41 million and £44 million.
Analysts had been forecasting between £57 million and £68 million of EBIT (earnings before interest and taxes) for the year to this July.
The company blamed slow sales of its data products alongside challenges in the EMEA (Europe, Middle East, Africa) region, although it said the CPS (consumer panel services) business performed ‘in line with expectations’ and it continued to see increased demand for customised research solutions.
EXPERT VIEW
AJ Bell investment director Russ Mould commented: ‘Casual observers of YouGov might assume the company would enjoy a bumper time during the election but its polling operation makes a relatively modest contribution to group revenue.
‘The data analytics side is more important, and this is where the company is struggling. The company invested for an expected acceleration of growth in the second half of its financial year which, in classic fashion, failed to materialise.
‘This may reduce some of the clamour for the company to move its listing to the US in search of a higher rating. The one reassuring element of the announcement is the recently-acquired consumer panel business is performing as expected.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Ian Conway) own shares in AJ Bell.
