YouGov Considers Selling Former GfK Consumer Panels Business After Two Years

YouGov is contemplating the sale of the former GfK consumer panels business, purchased for £270 million just two years ago. This move comes as the company, listed on London’s junior Aim market, seeks to reassess its strategy following a challenging period.

Stephan Shakespeare, co-founder and interim chief executive of YouGov, confirmed that a strategic review has been initiated for this division, now renamed YouGov Shopper. He indicated that the company is evaluating whether to fully integrate the division or explore alternative options for its future.

The acquisition of GfK’s consumer panels business has not met expectations, with Shakespeare asserting that, while they did not overpay at the time, market dynamics have shifted. Increased competition and the need for enhanced investment in capturing consumer data are now critical considerations for YouGov.

YouGov plans to allocate approximately £6 million to upgrade the technology for the division this year, which is anticipated to reduce adjusted operating profit between £52 million and £56 million. This figure falls short of the £61 million reported in the previous year.

Despite undergoing a strategic review, the company has revealed that no active discussions are ongoing regarding potential buyers. YouGov has previously engaged with prospective acquirers but is yet to make any formal commitments.

The company is experiencing a slowdown in revenue growth, with underlying revenue increasing by only 1 per cent in the first half of the year. Performance in its core research division was buoyant, but declines in data products and the shopper business offset gains.

YouGov finds itself navigating a turbulent period as it seeks to recover its market valuation. The search for a permanent chief executive continues following the abrupt departure of Steve Hatch, with the firm implementing a new operating model that incorporates artificial intelligence.

In the last twelve months, YouGov shares have declined by over 50 per cent, with recent trading showing a significant decrease. The company is also pursuing a refinancing strategy to facilitate a share buyback programme in lieu of an annual dividend this year.