Polling and data group YouGov PLC (LON:YOU) saw profits surge again last year, driven by continued growth in its two biggest markets.
Revenues at the AIM-quoted firm in the year to end July jumped 21% to £107.0mln (2016: £88.2mln). A large chunk of that growth was due to the weaker pound post-Brexit, which pushed up revenues when translated back into sterling.
US now biggest profit generator
Aside from the currency tailwinds, the overall numbers were bolstered by a strong performance in the US, where revenues increased by a third year-on-year to £40.7mln. That region is now the group’s biggest profit generator, notching up an adjusted operating profit of £9.3mln.
“This performance [in America] was supported by the expanding media coverage for YouGov, especially from our polling with CBS during the Presidential Election and expanded marketing to the corporate sector,” the company said.
In its home UK market, sales rose 9% to £27.1mln (2016: £24.9mln) with the data products division – which sells services such as a brand perception tracking tool – the main factor behind that growth.
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Overall, the increase on the top line, coupled with a wider profit margin, filtered through to the bottom line. Profits before tax for the year rose to £7.9mln (2016: £5.5mln), while on an adjusted basis – often preferred by analysts – pre-tax earnings came in 24% higher at £16.4mln (2016: £13.3mln).
According to FactSet, analysts had expected profits of £15.6mln on sales of £107mln.
International spread should insulate YouGov from any Brexit fallout
"This is the third consecutive year in which YouGov has delivered growth significantly above the market, both in revenue and profit,” said chief executive Stephan Shakespeare.
“We have made further progress in our strategic shift to data products and services sold on subscription and this is bringing increased margin and greater visibility.”
He added: “Trading in the current financial year has started in line with our expectations.
“Brexit continues to create uncertainty in the economic and political environment, especially for UK and European businesses. However, the international spread of our revenues (with a significant US weighting) positions our business well to cope with potential volatility.”
Shares opened 1.2% higher at 296p on Monday.