Yougov Plc · LSE:YOU
Yougov — H1 2011 Earnings Presentation
24 slides from Yougov's earnings presentation, Apr 4, 2011
Slide 1: YouGov plc: US becomes YouGov's largest region
YouGov plc US becomes YouGov’s largest region Driven by successful acquisitions and good organic growth Interim results to 31 January 2011
Slide 2: Overview
Overview § US becomes YouGov’s largest region - driven by successful acquisitions and good/strong organic growth § Turnover of 27.0m, up 27% on prior year - 8% organic growth § US acquisitions continuing to accelerate the growth of our US corporate business. The US is now our largest market in te
Slide 3: Focusing on Strengths
Focusing on Strengths ü Bespoke technology platforms delivering benefits ü Integrated and streamlined operations across the Group ü Exporting proven core model into new territories: ü SixthSense - reports business launched in UK ü BrandIndex – revenue growing globally; enhancements in developme
Slide 4: Financial Overview
Financial Overview § Half year turnover 27% to £27.0m § Operating profit 57% to £2.2m § Adjusted profit before tax 64% to £2.3m § Reported profit before tax £0.4m (2010: Loss of £0.5m) § Adjusted earnings per share 110% to 2.1p § Initial contribution from Harrison - revenue of £3.9m and profit
Slide 5: Segmental Analysis - Revenue
Segmental Analysis - Revenue Organic H1 2011 H1 2010 Change Change Revenue Revenue % % £m £m UK 6.4 5.4 19 Middle East 3.7 3.8 (3) Germany 6.4 7.3 (12) Scandinavia 3.9 3.3 18 USA 7.1 1.9 274 66 Corporate & Consol Adjs (0.5) (0.4) Group 27.0 21.3 27 8 5
Slide 6: Segmental Analysis - Operating Profit
Segmental Analysis - Operating Profit H1 2011 H1 2011 H1 2010 H1 2010 Operating Operating profit* Margin profit* Margin £m % £m % UK 1.3 20 1.2 22 Middle East 0.8 22 0.7 21 Germany 0.2 3 0.7 10 Scandinavia 0.2 5 (0.2) (1) USA 1.0 14 0.1 5 Corporate & Consol Adjs (1.3) (1.1) Group 2.2 8 1.4 7 * Opera
Slide 7: Group Income Statement
Group Income Statement Half Year Half Year to 31 Jan to 31 Jan § Half year revenue up 27% 2011 2010 § Gross margin down by 1% to £m £m 76% Group Revenue 27.0 21.3 § Operating margin up 1% point Cost of sales (6.6) (4.9) § Adjusted Earnings per share of 2.1p Gross Profit 20.4 16.4 § Headcount in
Slide 8: Balance Sheet
Balance Sheet 31-Jan-11 31-Jan-10 £m £m Assets Goodwill 36.8 34.3 Intangible assets 11.4 17.3 Other non-‐ current assets 5.3 4.8 53.5 56.4 Current assets Trade and other receivables 19.9 14.5 Cash and cash equivalents 10.9 14.9 Total current assets 30.8 29.4 Total assets 84.3 85.8 Liabili9es Trade
Slide 9: Cash Flow
Cash Flow 6 months 6 months to to 31-Jan-11 31-Jan-10 £’m £’m § Cash flow from operating activities: £1.1m (2010: £2.4m) Cash flows from operating activities Profit after taxation 0.8 (0.0) § Debtor days reduced to 76 days Adjustments for: Non cash movements 1.8 1.9 from 82 days at 31 January 2010
Slide 10: Getting more out of the engine we've built
Getting more out of the engine we’ve built Sector Brand expertise Technology & Analytics Operations High Large response panel Engine range of clients 10
Slide 11: UK - Operational Review
UK - Operational Review § Revenue up 19% Half year to Half year to § Operating Profit up 8% to £1.3m 31-Jan 31-Jan 2011 2010 Change § Omnibus international services £m £m % expanded - revenues up 18% Revenue 6.4 5.4 19% § Planned investment across the business to strengthen sales and Operating P
Slide 12: US - Operational Review
US - Operational Review § Revenue growth of 274% (organic Half year to Half year to growth of 66%) making the US our 31-Jan 31-Jan Organic largest market by revenue 2011 2010 Change Change £m £m % % § Harrison acquisition performing Revenue 7.1 1.9 274% 66% above expectations § US mid-term electi
Slide 13: Harrison Group Acquisition Update
Harrison Group Acquisition Update § Harrison is a leading US market research agency based in Connecticut which we acquired in August 2010 § Initial revenue contribution of $6.2m (£3.9m) and profit of $1.1m (£0.7m) § Integration underway - leveraging the YouGov panel will improve US margins § Com
Slide 14: Germany - Operational Review
Germany - Operational Review § Custom research services down by Half year to Half year to 17% 31-Jan 31-Jan 2011 2010 Change § Restructuring in progress to address £m £m % the business’ poor performance Revenue 6.4 7.3 (12) § Sale of Great Place to Work subsidiary, led by the German CEO. Operatin
Slide 15: Scandinavia - Operational Review
Scandinavia - Operational Review § Scandinavia maintained profitability Half year to Half year to from H2 2010 31-Jan 31-Jan § Revenue up by 18% 2011 2010 Change £m £m % § Launch of Swedish political opinion Revenue 3.9 3.3 18% service in February 2011 § Annual Nordic Food and Health Operating P
Slide 16: Middle East - Operational Review
Middle East - Operational Review § Growth of local generated business now offsetting expected reduction in revenue Half year to Half year to 31-Jan 31-Jan from long term contract 2011 2010 Change § Profit up 14% due to cost savings made £m £m % 12 months ago Revenue 3.7 3.8 (3) § Regional online
Slide 17: Products Strategy
Products Strategy § Our core strengths are enabling us to evolve to a panel-and-product driven business with a consultancy overlay § We have great products that can stand alone… § …but they become more powerful when aligned into a cohesive product suite § Continued innovation is at the heart of
Slide 18: Multi-platform Product Range
Multi-platform Product Range Dashboard Reports Custom Research 18
Slide 19: Leveraging the Business Model
Leveraging the Business Model Panel Technology/Ops/Support Products (BrandIndex, SixthSense etc.) 19
Slide 20: Group Outlook
Group Outlook § Positive momentum expected to continue into the second half § German turnaround continues to pose challenges § Continuing growth of the Group’s US presence § Maintaining investment in new product development § Expansion of business activities into new territories § Current trad
Slide 21: Appendices
y eon oN ver fe a ey wi \~ om \ AOR ied) na 2) What the world thinks
Slide 22: The most quoted market research company in the UK
The most quoted market research company in the UK 22
Slide 23: Fourth most quoted market research company globally
Fourth most quoted market research company globally 23
Slide 24: Our Key Products
Our Key Products § BrandIndex extension § SixthSense § Specialist/Local Trackers, including: § Debt Tracker (UK) § American Pantry Study (US) § Hospital Index (US) § Harrison Wealth Study (US) § Health ‘n’ Food Tracker (Nordics) § The Role of Social Media in Financial Services (Germany) §