YouGov reports modest first-half growth, CEO transition

(Sharecast News) - YouGov reported modest underlying first-half growth in an update on Tuesday, supported by stabilisation in its core business and a return to growth in its data products division. The AIM-traded company said its performance for the six months ended 31 January was in line with expectations, with stronger reported growth reflecting the impact of its recent acquisition of Consumer Panel Services (CPS).

It said its data products division achieved low-single-digit growth, benefiting from stable renewal rates and strong performance within the media agency sector.

The research division also posted low-single-digit growth, as gains in the technology sector and academic institutions were offset by declines in government spending due to elections and continued weakness in the gaming sector.

Meanwhile, CPS performed in line with expectations, with investments in new growth initiatives having commenced.

YouGov's previously-announced cost optimisation plan, which aimed to achieve annualised savings of £20m, reportedly remained on schedule.

The company said it expected to realise 70% of the savings in the 2025 financial year, with most of the reductions weighted towards the second half of the year.

Headcount reductions were implemented in the first quarter.

Looking ahead, YouGov said it expected to maintain modest year-on-year revenue growth on a reported basis in the second half of the year.

While the return to growth in data products was a positive development, the firm said it remained cautious due to continued market pressures, client budget constraints, and longer sales cycles.

Investment in key growth areas, including data products and AI-driven capabilities, remained a priority for medium-term expansion.

Separately, YouGov announced a leadership transition with the departure of chief executive officer Steve Hatch, who stepped down with immediate effect.

Co-founder and former CEO Stephan Shakespeare had been appointed as interim CEO as the board conducted a search for a permanent successor.

Shakespeare, who previously led YouGov for over a decade, would oversee the company's strategic execution and transition process.

In addition to the CEO change, YouGov said Deborah Davis had been appointed interim non-executive chair of the board, replacing Shakespeare in that role.

Davis, an experienced board director, joined YouGov in June last year as a non-executive director and chair of the remuneration committee.

Andrea Newman, a board member since 2017, would take over as chair of the remuneration committee.

The company said it also planned to appoint an additional independent non-executive director later in the financial year.

YouGov said it would publish its half-year results on 31 March.

"On behalf of the board I would like to thank Steve Hatch for his commitment and support over the past 18 months, especially during a challenging time for the company," said Stephan Shakespeare.

"Steve played a crucial role in building and leading a strong leadership team and ensuring a smooth integration of the CPS acquisition."

"I look forward to returning to the role of CEO on an interim basis and to working with the broader leadership team as we execute against YouGov's strategy to drive growth in the medium term."

At 0926 GMT, shares in YouGov were up 1.22% at 366.4p.

Reporting by Josh White for Sharecast.com.