YouGov profits jump on new subscription model
YouGov saw profits soar in its last trading year on the back of its new subscription format that boosted revenues and an improved profit margin.
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The AIM-listed market research and data analytics outfit told shareholders on Tuesday that it was "tracking well" towards its five-year growth plans as it revealed a 35% increase in operating profits to £19.7m, reflecting its improved margins which resulted both from operating efficiencies and a planned change of business mix in line with the group's strategy of focussing on subscription data products. Operating profit margin moved ahead to 17% from the 14% seen a year earlier and earnings per share grew 52% to 16.6p.
Revenues improved 9% to £116.6m across the year ended 31 July, with the data and service wing leading the way with a 25% increase in revenue to £59.4m.
The US remained YouGov's largest profit generator - with adjusted operating profits in the region increasing 78% to £16.6m.
Chief executive Stephan Shakespeare claimed YouGov's increasingly international revenue spread would help it "cope with, or even gain from, potential volatility" as a result of Brexit.
In terms of money returned to investors, the firm upped its full-year dividend by 50% to 3p.
Shakespeare said: "Increasingly, our clients are demanding the rapid analysis of data in real-time, and through targeted investments in technology we have built a data engine which serves the modern marketer."
"However, as the technology of decision-making evolves, so must our products and applications."
As of 1045 BST, YouGov shares had slipped 2.12% to 462p.