Experian Q3 organic revenue up 4%, keeps FY guidance
FTSE 100 information services company Experian reported a 4% rise in third-quarter organic revenue as it maintained its guidance for the full year.
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In the three months to the end of December, total revenue growth from ongoing activities was 6% at constant exchange rates and organic revenue growth was 4%. At actual exchange rates, total revenue growth from ongoing activities was 4% as the weak pound more than offset the improvement in the Brazilian real.
Experian said that if current exchange rates prevail through to the end of the year, it would expect a resulting headwind to benchmark earnings before interest and taxes of about 1% for the full year.
In North America, the company saw organic revenue growth of 3% and total revenue growth from ongoing activities of 7%, reflecting the first full quarter contribution from CSIdentity, its identity fraud protection acquisition.
Experian said it delivered “another strong performance” in Latin America, with organic revenue growth of 8% at constant exchange rates.
Meanwhile, in the UK and Ireland, organic revenue growth came in at 2% at constant exchange rates as growth across its business-to-business operations more than offset an expected decline in consumer services.
In EMEA/Asia Pacific, organic revenue growth was 6% at constant exchange rates.
Chief executive officer Brian Cassin said: “We delivered organic revenue growth in Q3 of 4%, consistent with our guidance of mid-single digit organic revenue growth and as we lapped a strong prior year comparative.
“At a global level, Credit Services, Decision Analytics and Marketing Services delivered good growth, reflecting strength in our core markets, investment in new product growth and innovation and the benefits of our One Experian strategy to provide integrated services to our clients. In Consumer Services, we continue to advance our product plans and are encouraged by the increasing levels of engagement with consumers as we help people better manage their credit.”
Experian left its guidance for the full year unchanged. At a group level and at constant currencies, it anticipates organic revenue growth in the mid-single digit range and stable margins.