Yougov Plc · LSE:YOU
Yougov — FY2009 Earnings Presentation
21 slides from Yougov's earnings presentation, October 2009
Slide 1: YouGov plc – Preliminary results
YouGov plc Good operational progress in tough market conditions Well positioned to benefit from continued growth in online Preliminary results October 2009
Slide 2: Overview
Overview • Tough 12 months for the market research industry as a whole • Impact of economic slowdown most noticeable in: • the investment management business which saw demand drop considerably • Scandinavian market which faced considerable pricing pressure • Normalised PBT of £3.9m lower primarily d
Slide 3: Good operational progress
Good operational progress • Three main goals: 1. Establishing an integrated global technology platform • Rolled out “G”, our “best of breed” integrated online research platform • Supports seamless global research operations 2. Leveraging our geographic spread and our range of skills and experience •
Slide 4: Positioning YouGov for the future
Positioning YouGov for the future • Market conditions remain difficult but online research will continue to be a growth area • We believe YouGov continues to grow market share • We are investing in the next stage of real-time data products • YouGov will benefit from the shift to online research due
Slide 5: Market dynamics – the trend to Online continues
Market dynamics – the trend to Online continues Online research penetration 60% 50% 40% 30% 20% 10% 0% 2000 2007 2012E US EU • The US and European online research market will potentially be worth $6.4bn by 2012 compared to some $2.8bn in 2007 (Source: Ernst and Young estimates) • European online mar
Slide 6: Strength of YouGov's brand
Strength of YouGov’s brand Analysis of media coverage in the UK 18,000 16,000 15,574 14,000 12,000 Article count 10,000 7,824 8,000 6,099 6,000 3,720 4,000 3,259 1,865 2,000 1,020 0 YouGov ICM TNS Ipsos MORI Populus Gfk NOP Harris Interactive Source: Meltwater News 01 August 2008 - 31 July 2009 6
Slide 7: Financial overview
Financial overview • Turnover up 10% to £44.3m (2008: £40.4m) • Normalised operating profit of £3.1m (2008 £8.7m) • Normalised profit before tax of £3.9m (2008: £9.5m) • Reported loss before tax was £0.7m (2008: profit of £4.0m) • Normalised earnings per share of 2.7p (2008: 9.1p) • Good operating c
Slide 8: Segmental analysis
Segmental analysis Revenue Revenue Operating Operating £m growth % profit £m* margin UK 11.1 (12)% 2.0 18% Middle East 8.4 10% 2.8 34% Germany 14.8 23% 0.7 5% Scandinavia 7.4 14% (0.2) (2)% USA 3.5 23% 0.2 5% Group 44.3 10% 2.7 6% * Operating profit before amortisation and exceptional items 8
Slide 9: Group Income Statement
Group Income Statement 2008/09 2007/08 £’m £’m • Revenue up 10% to £44.3m (2008: £40.4m) Group revenue 44.3 40.4 • Gross margin decreased from 83% to Cost of sales (10.6) (7.0) 76% Gross Profit 33.8 33.4 • Operating expenses increased by 22% reflecting recruitment of additional staff Operating expen
Slide 10: Balance Sheet
Balance Sheet 31-Jul-09 31-Jul-08 £’m £’m Assets Non current assets Goodwill 33.5 33.5 Intangible assets 17.9 17.1 Other non current assets 5.2 4.0 Total non current assets 56.6 54.6 Current Assets Trade & other receivables 15.0 18.2 Cash & cash equivalents 12.7 13.4 Total current assets 27.7 31.6 T
Slide 11: Cash Flow
Cash Flow 2008/09 2007/08 £’m £’m • Cash flow from operating Cash flows from operating activities Profit after taxation 0.2 6.1 activities: £5.3m Adjustments for: Non cash movements 2.8 1.5 Net working capital movement 2.4 (4.4) • Debtor days at 31 July 2009 Cash generated from operations 5.3 3.1 we
Slide 12: UK - operational review
UK - operational review • Like-for-like growth in the 2008/09 2007/08 Growth Consulting business of 21% £m £m • Omnibus continuing to deliver Revenue 11.1 12.6 (12)% solid growth Operating profit 2.0 3.9 (49)% • New syndicated product launches Headcount 81 97 (16)% • Public sector revenue growing: C
Slide 13: Middle East – operational review
Middle East – operational review • Good growth of 13% in regionally 2008/09 2007/08 Growth £m £m generated business • Underlying decrease in revenue of 13% Revenue 8.4 7.7 10% due to expected reduction in major long Operating profit 2.8 3.8 (25)% term project • Saudi Arabian market developing Headco
Slide 14: Germany – operational review
Germany – operational review • Underlying revenue growth 6%: strong 2008/09 2007/08 Growth performance in market where many £m £m competitors struggled Revenue 14.8 12.0 23% • Retail financial services and employee Operating profit 0.7 0.7 (6)% research and satisfaction practices performing well Hea
Slide 15: Scandinavia – operational review
Scandinavia – operational review • Underlying revenue fell 2% 2008/09 2007/08 Growth • Tough trading conditions with £m £m significant pressure on pricing Revenue 7.4 6.5 14% • Appreciation of Danish Kroner Operating profit (0.2) 1.0 (118)% against other Scandinavian currencies caused margin pressur
Slide 16: USA – operational review
USA – operational review • Still in early stage of commercial 2008/09 2007/08 Growth development – good progress being £m £m made Revenue 3.5 2.8 23% • Strength in political polling provides a Operating profit 0.2 (0.1) 152% platform for brand extension – reputation for accuracy enhanced by US Elect
Slide 17: YouGov 2.0
YouGov 2.0 • Combining custom and syndicated research into one flexible offering • Adding data-mining to leverage the power of panel methodology • Building the product around the client • Enhancing the panellist’s experience 17
Slide 18: From custom research...
From custom research... Panel Report Survey Analysis (Custom questions) 18
Slide 19: ...to Syndicated research...
...to Syndicated research... Multiple clients Panel Survey Fixed range of questions Database Computer reporting of results 19
Slide 20: The new model: flow of data customised to client needs
The new model: flow of data customised to client needs Data mining by Multiple products Panel YouGov and/or and services from Clients one source Dynamic Custom Sampling reporting Enlarged fixed range of questions YouGov + produced Super-enriched analytics Custom questions database + Profiler questio
Slide 21: Group outlook
Group outlook • Clients’ tight control of budgets set to continue • But, Group now benefitting from renewed focus and reduced cost base • Our brand strength, the products already launched and sector expertise will help us to grow customer base • Well placed to capitalise on growth in online research