Data credit company Experian (EXPN) is bullish on revenue growth in the third quarter after a ‘resilient’ performance in the first half of the year, despite the backdrop of the pandemic.
Revenue for the first half of the year at constant currency grew three per cent after a strong performance in the second quarter. Experian reported a two per cent drop in revenue in the first quarter, offset by a five per cent rebound in the following quarter.
Second quarter growth was at the top end of the FTSE 100’s guidance range, and its outlook is far more positive than in May when it warned of a 10 per cent revenue hit in the first quarter if lockdown restrictions continued.
Experian expects organic revenue growth in the range of three to five per cent in the third quarter.
The strong performance was mainly driven by growth in North America and Latin America where revenue jumped seven and five per cent respectively. Performance in the UK and Ireland and EMEA/Asia Pacific was considerably weaker, with organic revenue down 12 and 18 per cent respectively.
Experian said the “stand out performance” across the group was in consumer services where it boasts nearly 100m free consumer memberships.
North America delivered organic revenue growth of 13 per cent in the division after investing in Experian Boost, which now has 4.9m unique account connections.
Consumer services in the UK had a “tough start” due to reductions in lending volumes, although performance stabilised somewhat by the second quarter. Experian launched its Boost service in early November which may help drive up revenues.
Chief executive Brian Cassin said: “While COVID-19 has significantly impacted the macroeconomic environment, it has also catalysed trends which play to Experian’s strengths.”
“Once the crisis abates, we believe we will be strongly positioned to take advantage of the secular growth trends and we are excited by the opportunities we see ahead.”