YouGov Lowers Revenue Forecast as Demand for Data Products Declines
The market research institute YouGov has surprisingly lowered its revenue forecast due to declining demand for its data products, as stated in a recent announcement. The company's stock plummeted by up to 40 percent, marking its most significant drop in 15 years. YouGov now anticipates a revenue of 324 to 327 million pounds (383 to 387 million euros) for the current business year ending on July 31, a stark contrast to the medium-term revenue forecast of 500 million to 650 million pounds it had raised in March.
The decreased sales of data products are primarily attributed to reduced demand for fast research services, especially during elections such as the upcoming ones in East Germany. With 2024 being considered a Super Election Year globally, the spotlight is on the potential voting blocs this year. Germany, Austria, and Switzerland are standout markets for YouGov, with Germany being particularly challenging. In a strategic move, YouGov acquired the GfK Consumer Panel CP for 315 million euros in January, expanding its reach in the consumer goods and retail sector.
The Brexit Party's successes have positioned the company well, providing a stable base for future growth despite the recent setback. YouGov, established in 2000 and headquartered in London, looks to continue its global operations catering to various industries and organizations in need of reliable market insights.
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