Experian exceeded expectations this morning , with total revenue growth 14 per cent at actual exchange rates and organic revenue growth of 11 per cent.
Brian Cassin, chief exec, commented: “We now expect organic revenue growth for the full year to be in the range of 12-13 per cent, with total revenue growth now expected in the range of 16-17 per cent, at constant exchange rates. We continue to expect strong EBIT margin accretion, also at constant exchange rates.”
In UK and Ireland, global information services firm has continued to see good execution of its strategic plan, with organic and total constant currency revenue growth was eight per cent.
Organic growth in B2B revenues was six per cent, and credit origination and pre-qualification volumes were robust, stimulated by market recovery and new business wins.
Experian made good progress in new client segments, such as buy now pay later.
The uptake of B2B platforms and other new products was also encouraging for Experian as clients upgrade their core underwriting systems. This included good demand for affordability and eligibility assessment propositions, growing momentum for Experian Ascend, significant client momentum in our data quality business and strong demand for advanced analytics.
Organic revenue growth in Consumer Services was 13 per cent. Transaction volumes across the credit comparison marketplace were very strong, reflecting growth in free memberships (now 10.8m) and buoyant market conditions.
Steve Clayton, Hargreaves Lansdown, select fund manager, commented on the results: “Overall, this is a strong report from Experian, but few were expecting anything else. So on a weak day for the wider market, following tumbles on Wall Street overnight, it was always going to be heavy going this morning.”
“Perhaps on a stronger day these numbers would have been better received. Instead the stock is drifting lower by a percent or so in early trading. But when sentiment picks up, Experian is likely to still be growing strongly, which rarely stays out of fashion for long.”