Yougov Plc · LSE:YOU
Yougov — H1 2009 Earnings Presentation
22 slides from Yougov's earnings presentation, April 2009
Slide 1: YouGov plc: Interim results 2008/09
YouGov plc Uniquely positioned in online research - selective investment for the future Interim results 2008/09 April 2009
Slide 2: Operational overview
Operational overview • Result in line with trading statement issued 5 February 2009 • Market conditions remain challenging • Revenue increased 20% (4% in constant currency) • New product launches to meet our clients changing needs - Recession Tracker, Debt Tracker and Dongle Tracker. Well received b
Slide 3: Track record of accuracy continues
YouGov - “What the world thinks” Track record of accuracy continues • US Presidential Elections • State of Hesse in Germany 3
Slide 4: Positioning YouGov for the future
Positioning YouGov for the future • Growth in cost base reflected investments made last year • Costs kept in line with budget but revenue growth expectations not met • Reviewed range of investment areas - scaling back investment in non- core activities and reducing costs in areas not delivering expe
Slide 5: Financial overview
Financial overview • Turnover up 20% to £22.6m (2008: £18.8m) • Normalised profit before tax of £2.4m (2008: £5.2m) • Normalised earnings per share were 1.9p (2008: 5.2p) • Good cash generation - improved to £2.6m (2008: £1.8m) • Balance sheet remains strong – net cash increased to £13.7m as at 31 J
Slide 6: Segmental analysis
Segmental analysis Revenue Revenue Operating Operating £m growth % profit £m margin UK 5.3 5% 0.8 15% Middle East 4.2 7% 1.5 35% Scandinavia 3.7 23% (0.1) (3)% Germany 7.8 30% 0.5 6% USA 1.9 60% 0.1 6% Group 22.6 20% 1.6* 7% * Normalised operating profit 6
Slide 7: Group P&L - update
Group P&L - update 6 months to 6 months to • Revenue up 20% to £22.6m (2008: £18.8m) 31-Jan-09 31-Jan-08 £’m £’m • All revenue growth is organic Group revenue 22.6 18.8 • Gross margin decreased from 83% to 77% • Operating expenses increased by 42% Cost of sales (5.1) (3.2) (underlying increase of 26
Slide 8: Balance Sheet
Balance Sheet 31-Jan-09 31-Jan-08 £’m £’m Assets • Strong financial position Non current assets Goodwill 35.5 30.5 Intangible assets 19.6 16.2 • Healthy cash balances : £13.8m Other non current assets Total non current assets 4.7 59.8 3.9 50.7 • Growth in net assets reflects foreign Current Assets T
Slide 9: Cash Flow
Cash Flow 6 months to 6 months to 31-Jan-09 31-Jan-08 £’m £’m • Cash flow from operating activities: £2.6m Cash flows from operating activities Profit after taxation 0.7 3.6 Adjustments for: • Debtor days at 31 January Non cash movements Net working capital movement 0.8 1.1 1.1 (2.9) 2009 were 79 da
Slide 10: UK - operational review
UK - operational review • Omnibus service performing well and extended – good demand for 6m FY09 12m FY08 6m FY08 international service £m £m £m • New product launches to meet market Revenue 5.3 12.6 5.1 environment and changing client research needs – Recession Tracker, Operating profit 0.8 3.9 2.0
Slide 11: Middle East – operational review
Middle East – operational review • Revenue benefited from currency appreciation in the period, underlying 6m FY09 12m FY08 6m FY08 £m £m £m decrease in revenue was 14% as expected • Good growth in regionally generated new Revenue 4.2 7.7 4.0 business • Saudi Arabian market developing Operating profi
Slide 12: Scandinavia – operational review
Scandinavia – operational review • Roll out of YouGov’s products progressing 6m FY09 12m FY08 6m FY08 well and driving growth £m £m £m • Underlying revenue growth 4% in constant Revenue 3.7 6.5 3.0 currency • Trading conditions challenging – Operating profit (0.1) 1.0 0.2 31/1/09 31/7/08 31/1/08 par
Slide 13: Germany – operational review
Germany – operational review • Underlying revenue growth 10% in local 6m FY09 12m FY08 6m FY08 currency £m £m £m • Online panels in Germany and Austria Revenue 7.8 12.0 6.0 grown to 90,000 panelists • Financial management controls Operating profit 0.5 0.7 0.8 significantly improved • Employee Satisf
Slide 14: USA – operational review
USA – operational review • Underlying revenue growth 30% in local currency 6m FY09 12m FY08 6m FY08 £m £m £m • Still in early stage of commercial development – good progress being Revenue 1.9 2.8 1.2 made • Strength in political polling provides a Operating profit 0.1 (0.1) (0.1) platform for brand
Slide 15: Innovation
Cc O = © > O Cc Cc 15
Slide 16: The revolution continues
The revolution continues • The old world has been thoroughly transformed by the internet 16
Slide 17: The revolution continues
The revolution continues • Nearly all of us exist online – but how much has market research really changed? 17
Slide 18: The revolution continues: Innovation and Zeitgeist
The revolution continues Innovation Zeitgeist Fragmented and confused Passive • YouGov is launching a coherent range of products that allow clients to engage directly with the new world 18
Slide 19: The revolution continues
The revolution continues In-depth contextualised Enriched stream of data bespoke research Advanced data mining 19
Slide 20: Market dynamics
Market dynamics Online research penetration 60% 50% 40% 30% 20% 10% 0% 2000 2007 2012E US EU • Challenging conditions for market research as a whole but continuing to grow • Market driven by online shift, internationalisation and B2B focus • The US and European online research market will potentiall
Slide 21: Group strategy
Group strategy • The Group’s strategy is to take market share, selectively invest in the business and optimally position the business for the future and an upturn • Network of hubs supported by a global technology platform • Delivering global products from a global panel • Capitalise on the continue
Slide 22: Current trading and Group outlook
Current trading and Group outlook • Trading is in line with the Board’s revised expectations although, given the ad hoc, project based nature of much of our client work, the outlook remains uncertain in the current market environment • Strong balance sheet, profitable and cash generative • Restructu