Half-Year Trading Update and Notice of Results
Half-year revenue grew modestly; Data Products returned to growth; CEO Steve Hatch stepped down.
vs expectations: in line
- Data Products growth low-single-digit on underlying basis
- Research division growth low-single-digit on underlying basis
- Cost optimisation plan £20m annualised savings
- Savings achieved in FY25 70% expected
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YouGov, the international research and data analytics group, today issues a trading update for the half year ending 31 January 2025.
Current Trading
In the first half of the financial year, the Group has delivered modest growth on an underlying basis1 reflecting stabilisation in our core business, with strong growth on a reported basis due to the inclusion of the CPS acquisition. This performance is in line with management expectations given the previously communicated slowdown in sales booking that we witnessed towards the end of the last financial year.
Our Data Products division has returned to low-single-digit growth on an underlying basis1, owing to stable renewal rates and good performance within our media agencies sector. Our Research division also saw low-single-digit growth on an underlying basis1 during the period, as continued momentum in the technology sector and strong growth with academic institutions was offset by declines in government spending during elections and sustained weakness in the gaming sector. The CPS business is continuing to perform in line with expectations and investment in several new growth initiatives has commenced.
The previously announced cost optimisation plan to realise annualised cost savings of £20 million remains on track, with 70% of those savings expected to be achieved in FY25. The majority of the savings will be weighted towards the second half of the financial year, with the headcount reduction having been implemented in Q1 FY25.
Looking ahead, we are encouraged by the stabilisation we have seen and therefore the Group is expecting to deliver continued modest year-on-year revenue growth on a reported basis over the course of the second half of FY25. While our Data Products division, has returned to growth, we are mindful that market conditions remain challenging with pressure on client budgets and protracted sales cycles. The Group is continuing to invest in key growth areas such as its Data Products and AI-enabled capabilities to drive growth in the medium term.
Recent Developments
Separately, Steve Hatch and the Board have mutually agreed that he will step down as Chief Executive Officer (CEO) with immediate effect, with Stephan Shakespeare appointed as CEO on an interim basis. Further details on the directorate changes are outlined in the accompanying announcement.
Notice of Results
YouGov will publish its results for the six months ended 31 January 2025 on 31 March 2025.
1 Defined as growth in business excluding impact of current and prior period acquisitions and movement in exchange rates.
YouGov /Research Reality
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