YouGov plc (LON:YOU) has a strong growth record and its investment in building its data-driven products and services is steadily improving its earnings’ quality. This is also helped by the shift in its custom business to more tracking studies and a greater use of data already held in the Cube, the group’s proprietary multi-dimensional database. The strong balance sheet (net cash of £23m at end FY17) is funding continuing investment in panel and new applications, as well as allowing for an increased dividend payout. The rating reflects the growth record and continued good prospects.
Rich reserves of data in the YouGov Cube
YouGov’s data serves client needs such as planning and evaluating campaigns, products and policies and understanding consumer and public attitudes. The group’s five million panellists globally provide a rich reserve to draw on, stored in a multi-variate database known as the YouGov Cube. BrandIndex, the flagship product, is a brand intelligence and perception tracker, with over 500 subscribers worldwide. YouGov Profiles, a more recent addition, has been clearly validated by recently being chosen by Dentsu Aegis Network for audience understanding, strategy and activation (supplanting WPP’s TGI product). Omnibus remains the market leader in its segment, with geographical expansion attracting clients outside the UK as well as supporting multi-territory projects. YouGov continues to invest in data applications that can be fully integrated into marketers’ workflow, improving the quality of earnings. The successful prediction of a hung parliament at the UK general election, using the new MRP technique, has boosted YouGov’s reputation and can be used to describe micro audiences in great detail.
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