Popular polling company loses billions in value as new CEO takes different path
Market research giant YouGov faces tough times as its share price drops 70% from peak values. The company deals with high debt problems while trying to adapt to new tech-driven industry changes
In a year filled with world-wide voting events YouGovʼs financial results dont match expectations. More than 2 billion people are heading to voting stations in 50 countries this year (including major democracies like US‚ UK and India)‚ but the polling giant faces unexpected problems
The company started by Nadhim Zahawi and Stephan Shakespeare about 24 years ago changed how polling works: they moved from old-school clipboards to internet-based research. Their success pushed company value to £1.8bn just a few years back; however current worth sits at £440m — a huge drop that worries many stock-holders
For a decade‚ YouGov didnʼt put a foot wrong – which is why‚ when this sort of warning happens‚ it really spooks people
The companys problems started piling up after:
* A big profit warning last summer
* Taking on heavy debt for GfK purchase (€315m deal)
* Tech companies cutting their market-research spending
* Growing AI-based competition in data gathering
New CEO Steve Hatch who replaced co-founder Shakespeare last year faces tough decisions. The company announced a £20m cost-saving plan that includes:
* Getting rid of under-performing products
* Cutting back-office jobs
* Leaving some global markets
YouGov tries to stay relevant with new partnerships; they signed a deal with The Economist for weekly US election polls. However the company — once known for perfect timing and growth — needs to prove it can handle modern challenges and high debt while keeping its place in todays fast-changing data world
