YouGov PLC announced a 32% increase in underlying profits for the year to end-July, driven by a strong performance in all divisions, and said trading so far in the current year is in line with its expectations.
The research and data analytics group also announced the acquisition of the technology company Rezonence for an undisclosed sum, in a deal it said will enable “massive expansion” of data-generating and data-deploying touchpoints between YouGov and consumers.
Rezonence’s patented technology FreeWall is an interactive advertising format that allows consumers to access premium online content after engaging with an advert or taking a micro-survey.
YouGov said the publication of its results for the year to 31 July 2021 have been delayed until 19 October due to unforeseen circumstances late in the audit process. The finalisation of the audit may result in a reduction in tax charges, it added.
It therefore issued a trading update that included the unaudited full-year figures, which showed revenue growing 11% to £169mln on the back of good results across all divisions, driven by client demand. A strong performance in the second half meant underlying revenue growth was 18%, in line with pre-pandemic levels, the company said.
Underlying operating profit, excluding the impact of the planned Kurdistan closure and foreign exchange movements, was up by 32% at £25.5mln, giving an underlying operating profit margin of 16%, up from 14%, driven by all three divisions.
Statutory operating profits rose by 25% to £19mln.
Revenue in the Data Products division increased by 13%, or 18% from underlying business, to £58mln following a good recovery in the second half and strong contribution from mainland Europe, while at Data Services saw revenue surge by 20% (22% from underlying business) to £45.5mln, following continued strong client demand for more tactical, fast turnaround projects across all geographies.
Custom Research revenue increased by 2% (12% from underlying business) to £65.6mln, as the planned closure of the Kurdistan operations was offset by a strong performance in the US.
Turning to the current year, YouGov said trading had started in line with its expectations, with a healthy sales pipeline and continued strong momentum. Investment in its panel, technology and platforms will continue in line with full-year 2021.
YouGov co-founder and chief executive officer Stephan Shakespeare said: "We are pleased to end this financial year in line with our expectations, demonstrating sustained growth despite the continuing disruption caused by the pandemic.
"YouGov also continues to demonstrate momentum on the stated strategy as we enter the third year of our second long-term strategic growth plan. We believe that the investments we made in the first half of our plan have placed us in a strong position for the final two years.
"We have started off the new financial year well. We expect current positive trends to continue in the coming months which gives us confidence for the future."
Commenting on the acquisition of Rezonence, Shakespeare said: "Bringing Rezonence into the YouGov fold is a major step forward in our development from being an audience insights platform to also being an audience activation platform.
“It extends YouGov's capabilities over a much wider scale in a way that is entirely consistent with the strengths of the data engine we've built over the years. The ability to engage consumers as they go about their lives online not only means clients can reach them en masse but they can do so ethically and efficiently."
Rezonence’s founder and CEO Prash Naidu will join YouGov as part of the deal.