YouGov profits jump on new subscription model

9th Oct 2018 10:51

(Sharecast News) - 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.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.