March 24 (Reuters) - Market research firm YouGov warned of lower annual profit on Tuesday due to additional investments in its Shopper division, sending shares 12% lower. The company, which provides
UK pollster YouGov explores unit sale as AI investments squeeze profit
YouGov Launches Strategic Review Amid AI and Shopper Division Challenges
March 24 (Reuters) - Market research firm YouGov on Tuesday launched a strategic review of its Shopper division and warned that fiscal 2026 profit will fall due to extra investment in the struggling unit, sending its shares to a near-decade low.
Shopper Division Performance and Strategic Review
Shopper, which provides household purchase data across 17 European countries and generated more than a third of YouGov's revenue last year, saw its first-half profit halve due to heavy spending to maintain competitiveness.
Competitive Pressures and Industry Changes
Traditional market research firms are racing to adapt as clients demand faster, cheaper insights while AI disrupts data collection, pushing companies such as YouGov to invest even as margins narrow.
Background of the Shopper Division
The review comes two years after YouGov bought Shopper, previously called Consumer Panel Services, from German rival GfK for 315 million euros ($365 million).
YouGov shares dropped as much as 22% to their lowest since May 2016, taking year-to-date losses to around 40%.
AI Investments and Financial Impact
CEO Statement on AI and Investments
AGE OF AI
Industry-Leading Platform Ambitions
"During the period we have increased the level of targeted investments in both Shopper and our AI-enabled products, which we believe will reposition our platform as the industry-leading pioneer in the age of AI," CEO Stephan Shakespeare said in a statement, referring to the six months to the end of January.
Profit Guidance and Financial Outlook
The company expects full-year adjusted operating profit of 52 million pounds to 56 million pounds, down from 60.7 million pounds last year.
It said additional spending on Shopper would cost 6 million pounds in fiscal 2026 and that without this annual profit would have been flat year-on-year.
First-half adjusted operating profit fell 20% to 24 million pounds.
Analyst Commentary
Higher-than-expected investments in Shopper and AI-enabled products will lead to mid-term earnings downgrades, JPMorgan analysts said.
Additional Financial Information
($1 = 0.7468 pounds)
($1 = 0.8630 euros)
(Reporting by Nithyashree R B in Bengaluru; Writing by Yadarisa Shabong. Editing by Mrigank Dhaniwala and Mark Potter)
