(Alliance News) - YouGov PLC shares lost more than a third of their value early Thursday after reporting sales growth has been below expectations.

Shares in the London-based market research and data analytics firm plunged 34% to 540.60 pence each in London. Its share price has fallen 50% in the last 12 months, leaving it with a market value of GBP625.7 million.

Since half-year results for the six months to January 31, released in March, YouGov said it has seen lower sales bookings than anticipated.

As a result, YouGov now expects reported revenue for financial 2024 to be around GBP324 million to GBP327 million, up from GBP258.3 million in financial 2023.

YouGov said it had invested in the business to set up for an acceleration in growth in the second half of the financial year, but this growth was below expectations.

As a result, it now expects full-year group adjusted operating profit to be between GBP41 million to GBP44 million, down from GBP48.3 million in financial 2023.

Peel Hunt analyst Jessica Pok said this indicated downgrades to forecasts for financial 2024 of around 6% to revenue, and 38% to adjusted operating profit.

"This was a disappointing statement from YouGov, given the high visibility reported at the interims," she commented.

YouGov on Thursday said it continues to see increased demand for its customised research solutions.

However, sales in the Data Products division have remained slow and YouGov said it continues to see a decline in fast-turnaround research services.

The Consumer Panel Services business is continuing to perform well, in line with expectations, following completion of the acquisition in January.

But YouGov said aligning CPS's revenue recognition policies with its own, meant some contribution from CPS will shift slightly into financial 2025.

By Jeremy Cutler, Alliance News reporter

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