Group revenue up at Experian in first quarter

Information services firm Experian issued a first quarter trading update on Thursday, with total revenue growth of 5% at constant exchange rates in the three months to 30 June and 1% at actual exchange rates.

Of that, North America contributed 5% of the total revenue growth from continuing activities at constant exchange rates, Latin America 8%, UK and Ireland 1% and EMEA Asia Pacific 9%.

Latin America and UK and Ireland both declined at actual exchange rates, however, by 6% and 5% respectively.

Organic revenue growth in North America was 5%, Latin America 8%, UK and Ireland 1% and EMEA Asia Pacific 9%, for overall organic growth across Experian of 5% year-on-year.

“We delivered organic revenue growth in Q1 of 5%,” said chief executive Brian Cassin.

“Notably, Credit Services and Decision Analytics have continued to grow strongly, reflecting strength in our core markets.

“In Consumer Services, we continue to execute on our strategy to diversify our business model and engage consumers through a full range of free and paid-for products,” Cassin explained.

He said Experian was closely monitoring the possible implications of a UK exit from the European Union, and while there is uncertainty as to how and when any exit will take effect, the business will continue to operate as usual.

“We have seen no significant adverse impact to trading in our UK business.

“As a global business with a diverse portfolio, we have a good track record of adapting to changing market conditions,” Cassin said.

Looking ahead, Experian’s guidance for the full year remained unchanged, with organic revenue growth in the mid single-digit range expected at a group level at constant currencies.

The FTSE 100 company was also expecting “further progress” in benchmark earnings per share.

“There continues to be considerable fluctuation in currency exchange rates and in the quarter sterling weakened and the Brazilian real strengthened, both relative to our reporting currency of the US dollar,” Cassin explained.

“If current exchange rates prevail through to the end of the year, we would expect a headwind to EBIT of approximately 1%, weighted to the first half.”