YouGov reports 63% surge in annual profits

Research and data analytics group YouGov saw annual profits surge as it reiterated its confidence in hitting market forecasts for the current year in spite of a "difficult trading environment".

The company said revenues rose 17% in the year to 31 July to £258m, with strong growth in its Data Products and Customer Research divisions, up 16% and 27% respectively, offsetting weakness in Data Services, down 6% as "market softness continues to impact more discretionary spend".

In terms of its regional performance, YouGov said it saw strong growth across all regions, though trading in the US was affected by a slowdown in the tech sector. Meanwhile, the adjusted operating margin jumped 230 basis points to 18.7%.

Adjusted pre-tax profit totalled £56m during the first half, up 63% year-on-year, helped by operating gearing and disciplinied cost management, YouGov said.

The company's summer acquisition of GfK's Consumer Panel Business in Europe is said to be on track and expected to close in the coming months,.

"Building on the momentum we saw in the first half of the year, YouGov has delivered another year of strong performance in FY23 against a challenging macroeconomic backdrop. We have continued to invest for sustainable growth, in line with our strategy, while delivering further margin expansion and robust cash generation," said chief executive Steve Hatch.

"Demand for YouGov's products and services remains strong with continued new business momentum, high renewal rates and sticky customer relationships. As a result, we remain confident in the group's prospects for FY24 and beyond, aiming to maintain the strong sales momentum seen over the past year."