Experian half year revenue hit by forex headwinds

Experian’s half year revenue has been hit by exchange rates, and the company predicts its going to be an issue for the rest of the financial year.

The FTSE 100 information services company posted its interim results to 30 September on Tuesday.

Total revenue for continuing activities grew 4% to $2.21bn (£1.46bn) at constant exchange rates.

However, it fell by 6% at actual rates, reflecting foreign exchange headwinds. Total revenue, including business activities that were being discontinued, sat at $2.24bn.

The company’s profit was also affected by a loss in financing fair value remeasurements, with profit after tax down from $409m to $331m.

However, the company has upped its first interim dividend of 12.5 cents per share – an increase of 2% to reflect the underlying strength of the business.

Experian chief executive Brian Cassin said foreign exchange will be an issue for the full year.

"While foreign exchange will continue to be a headwind, at constant currency we expect organic revenue growth to be in the mid-single digit range, to deliver stable margins and to see further progress in benchmark earnings per share."

He also noted the company is making substantial progress on its five strategic priorities.

“We've taken steps to focus the portfolio, the trend in organic revenue growth has improved and we are returning more capital to shareholders.

“We have seen particular strength in key parts of the business, such as Credit Services and Decision Analytics, while in other areas our recovery actions are gaining traction.”