Experian earnings grow as it completes CSIdentity acquisition

Global information services company Experian issued its half-yearly financial report for the six months to 30 September on Wednesday, with 5% organic revenue growth to $2.24bn, which was in line with its board’s target range.

The FTSE 100 firm posted strong organic growth in credit services and decision analytics, and “improving trends” in marketing services.

Benchmark EBIT from ongoing activities was $574m, up 5% at constant exchange rates, with the benchmark EBIT margin from ongoing activities at 25.7%, down marginally from the 25.8% seen a year ago.

During the period, the company launched free consumer propositions in its three largest credit services markets, and the acquisition of CSIdentity Corporation completed.

It also commenced a divestment process for the email/cross-channel marketing business.

Experian’s board declared a first interim dividend per share of 13 cents, up 4%.

“We have started the year well, delivering good growth with particular strength in our core Credit Services and Decision Analytics businesses,” said chief executive officer Brian Cassin.

“Our investments in innovation and new product development are beginning to benefit clients and consumers across our businesses, and provide a strong base for sustainable growth.”

Cassin said a key part of Experian’s strategy over the last two years has been to deliver sustained growth, optimise use of capital and to focus the portfolio - a process which has resulted in a number of divestments and enhanced returns to shareholders.

“Following a review of strategic options, we are today announcing commencement of a divestment process for the email/cross-channel marketing business.

“Looking ahead, at a group level and at constant currencies, we expect organic revenue growth in the mid-single digit range and to deliver stable margins as we invest for growth,” he explained.

“We also continue to expect further progress in benchmark earnings per share.”