Yougov Plc · LSE:YOU
Yougov — H1 FY2010 Earnings Presentation
19 slides from Yougov's earnings presentation, January 2010
Slide 1: YouGov plc Interim results to 31 January 2010
YouGov plc Solid progress in challenging market conditions – Results in line with expectations Interim results to 31 January 2010
Slide 2: Overview
Overview • Continuing challenging period for the market research industry as a whole • Turnover of £21.3m • Group operating profit of £1.35m • Achieved operating cost savings of £1.0m (£1.5m in constant currency terms) in line with annual target of £2.5m • Maintained Group margins despite the previo
Slide 3: Positioning YouGov for the future
Positioning YouGov for the future • Integrated global technology platform “G” rolled out across the Group • Planned innovations coming on stream: • Launch of daily polling in UK – running through the General Election and beyond – with News International • www.TellYouGov.com in beta launch: the first
Slide 4: Market dynamics
Market dynamics 35 Global Market Research Spend 34 33 £'bn 32 31 30 29 2007 2008 2009 2010 2011 2012 Global Market Research Spend • 2009 was a challenging year for the industry, growth expected in 2010 • Online expected to continue to grow as a percentage of total market Source: Inside Research 4
Slide 5: Strength of YouGov's brand
SS Strength of YouGov’s brand Press coverage in the UK 2000 1000 Article count g § [oo ¢ ms ma: | E _E LE LE Source: Moltwater News 01 August 2009 -31 January 2010 You
Slide 6: Financial overview
Financial overview • Turnover down 6% to £21.3m (2009: £22.6m) • Group operating profit of £1.35m (2009: £1.6m) • Cost savings of £1.0m, in line with annual target of £2.5m • Reported loss before tax of (£0.5)m (2009: £0.4m) • Adjusted earnings per share of 1.0p (2009: 1.7p) • Good operating cash ge
Slide 7: Segmental analysis
Segmental analysis Revenue Revenue Operating Operating £m growth % profit £m* margin UK 5.44 2% 1.19 22% Middle East 3.78 (10)% 0.73 19% Germany 7.29 (7)% 0.67 9% Scandinavia 3.28 (12)% (0.25) (8)% USA 1.88 2% 0.09 5% Group 21.29 (6)% 1.35 6% * Operating profit before amortisation and exceptional it
Slide 8: Operating profit by hub
Operating profit by hub UK Middle East Germany Nordics USA Group 1.60 1.48 1.40 1.35 1.34 1.19 1.20 1.00 0.79 0.80 0.73 0.67 £'m 0.60 0.45 0.40 0.20 0.09 0.11 - -0.20 -0.10 -0.40 -0.25 FY10 FY09 8
Slide 9: Group Income Statement
Group Income Statement 6 months 6 months to to 31-Jan-10 31-Jan-09 • Revenue down 6% to £21.3m (2009: £’m £’m £22.6m) Group revenue 21.3 22.6 • Gross margin constant at 77% Cost of sales (4.8) (5.1) • Operating expenses decreased by 6% reflecting cost reductions made in Gross profit 16.4 17.5 FY2009
Slide 10: Balance Sheet
Balance Sheet 31-Jan-10 31-Jan-09 £’m £’m Assets Non current assets Goodwill 34.3 35.5 Intangible assets 17.3 19.6 Other non current assets 4.8 4.7 Total non current assets 56.4 59.8 Current Assets Trade & other receivables 14.5 18.6 Cash & cash equivalents 14.9 13.8 Total current assets 29.4 32.4 T
Slide 11: Cash Flow
Cash Flow 6 months to 6 months to 31-Jan-10 31-Jan-09 £’m £’m • Cash flow from operating Cash flows from operating activities Profit after taxation (0.0) 0.7 activities: £2.4m Adjustments for: Non cash movements 1.9 0.8 Net working capital movement 0.6 1.1 • Debtor days at 31 January Cash generated
Slide 12: UK - operational review
UK - operational review • Re-focusing custom research 6m FY10 6m FY09 Growth verticals led to increasing £m £m margins • Omnibus delivering good Revenue 5.44 5.35 2% revenue growth Operating profit 1.19 0.79 51% • Upgraded web portal for Headcount 88 89 -1% BrandIndex • Innovations include launch of
Slide 13: Middle East - operational review
Middle East – operational review • Expected reduction in revenue from 6m FY10 6m FY09 Growth £m £m long term contract • Focus on regionally generated business Revenue 3.78 4.21 -10% - up 20% in H1 Operating profit 0.73 1.48 -51% • Enhanced Omnibus and BrandIndex Headcount 58 47 23% successfully laun
Slide 14: Germany - operational review
Germany – operational review • Operating margin improvement to 9% 6m FY10 6m FY09 Growth £m £m from 6% • Continuing transition to online data Revenue 7.29 7.83 -7% collection – up from 20% to 30% Operating profit 0.67 0.45 48% • UK style Omnibus launched in Sep Headcount 175 196 -11% 2009 • Strength
Slide 15: Scandinavia - operational review
Scandinavia – operational review • Operations performed below initial 6m FY10 6m FY09 Growth expectations due to continued £m £m challenging conditions in the local Revenue 3.28 3.71 -12% market • Restructure in November 2009 - Operating profit (0.25) (0.10) -154% annual savings of £0.8m Headcount 5
Slide 16: USA - operational review
USA – operational review • Continuing development of 6m FY10 £m 6m FY09 £m Growth commercial market research – now contributing higher Revenue 1.88 1.85 2% proportion of revenue compared to political and Operating profit 0.09 0.11 -25% academic work Headcount 34 31 10% • Clear Horizon acquisition pe
Slide 17: Innovation - The future we are building
Innovation - The future we are building: a more systematic approach to research All of the building blocks exist in various stages but are now being developed and integrated: • Engaged panel • Integrated multi-tracker survey design • Real time automated collection of data • Central searchable, crunc
Slide 18: The YouGov Screen - now delivering in beta
The YouGov Screen – now delivering in beta Public interacts on YouGov’s platform which YouGov converts into meaningful data streams for clients (eg marketeers, media, investors etc) Polls www.TellYouGov.com Ratings and reviews Consumer voice 18
Slide 19: Group outlook
Group outlook • Trading in line with the Board’s expectations • Contributions from new revenue generating initiatives coming through as expected • Group profitability will be stronger in the second half of the financial year, as previously announced • Group expects to deliver improved profits for th