TIDMEXPN
RNS Number : 4088U
Experian plc
18 January 2017
news release
Trading update, third quarter
18 January 2017 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 31 December 2016.
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"We delivered organic revenue growth in Q3 of 4%, consistent
with our guidance of mid-single digit organic revenue growth and as
we lapped a strong prior year comparative. At a global level,
Credit Services, Decision Analytics and Marketing Services
delivered good growth, reflecting strength in our core markets,
investment in new product growth and innovation and the benefits of
our One Experian strategy to provide integrated services to our
clients. In Consumer Services, we continue to advance our product
plans and are encouraged by the increasing levels of engagement
with consumers as we help people better manage their credit.
"Looking ahead, our guidance for the full year is unchanged. At
a Group level and at constant currencies, we expect organic revenue
growth in the mid-single digit range, to deliver stable margins
while investing for growth, and further progress in Benchmark
earnings per share."
% change in revenue from ongoing activities year-on-year for the
three months ended 31 December 2016
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange exchange exchange
rates(1) rates rates
-------------------- -------------- -------------- ----------------
North America 7 7 3
Latin America 22 8 8
UK and Ireland (17) 2 2
EMEA/Asia Pacific 6 6 6
-------------- -------------- ----------------
Experian 4 6 4
-------------------- -------------- -------------- ----------------
1 Experian reports in US dollars
In the three months ended 31 December 2016, total revenue growth
from ongoing activities was 6% at constant exchange rates and
organic revenue growth was 4%. At actual exchange rates, total
revenue growth from ongoing activities was 4% due to weakness in
sterling more than offsetting the improvement in the Brazilian
real. If current exchange rates prevail through to the end of the
year, we would expect a resulting headwind to Benchmark EBIT of
approximately 1% for the full year.
% change in organic revenue year-on-year for the three months
ended 31 December 2016
Organic revenue Credit Decision Marketing Consumer Experian
growth(1) Services Analytics Services Services
North America 8 (3) 4 (5) 3
Latin America 4 48 55 na 8
UK and Ireland 5 12 3 (12) 2
EMEA/Asia
Pacific (3) 13 10 na 6
---------- ----------- ---------- ---------- ---------
Experian 6 10 6 (7) 4
----------------- ---------- ----------- ---------- ---------- ---------
1 Ongoing activities only
North America
In North America, we delivered organic revenue growth of 3% and
total revenue growth from ongoing activities of 7% reflecting the
first full quarter contribution from CSIdentity, our identity fraud
protection acquisition. In Credit Services, there was good growth
across all areas. In Decision Analytics, new contract wins and a
good pipeline of activity should benefit revenue in future
quarters. In Marketing Services, there was strong growth from
targeting with new contract wins in digital advertising, and an
improving performance in cross-channel marketing with elevated
volumes through the crucial holiday season.
As anticipated, Consumer Services organic revenue declined
reflecting the strong prior year comparative from the on-boarding
of a large affinity partner. During the quarter, we market-tested
our RightOffer lead generation proposition and we are now adding
more lenders and directing more consumer traffic to the platform as
we prepare for future growth.
Latin America
Latin America delivered another strong performance with organic
revenue growth of 8% at constant exchange rates. In Brazil, we are
seeing good growth in our bureau driven by countercyclical products
and increased demand for more data and analytics from large banks
and retailers. Our bureaux in Spanish Latin America also delivered
a strong performance. Across the region, Decision Analytics
continued to see strong growth with new contract wins and good
demand for analytics and scoring products. Marketing Services also
delivered continued strong growth.
UK and Ireland
Organic revenue growth in the UK and Ireland was 2% at constant
exchange rates as growth across our business-to-business operations
more than offset an expected decline in Consumer Services. We
delivered good growth in Credit Services with strength in credit
pre-qualification services and credit reference volumes. In
Decision Analytics, we saw strong growth with new contract wins and
continuing strong demand for decisioning software, analytics
services and fraud prevention services. In Marketing Services, we
saw strong demand for targeting data and digital advertising
services and better client retention in email/cross-channel
marketing.
As expected, UK Consumer Services organic revenue declined in
the quarter as we evolve the business and diversify our sources of
revenue. The consumer response to our free score proposition has
been positive with an encouraging number of new customers choosing
to upgrade to our premium subscription services. While it is still
early days, the new CreditMatcher lead generation service also
gained traction with increasing traffic and good levels of customer
take-up for our highly targeted credit offers.
EMEA/Asia Pacific
In EMEA/Asia Pacific, organic revenue growth was 6% at constant
exchange rates. Decision Analytics continues to deliver strong
growth with good demand for our credit decisioning software and
fraud prevention services, and we secured good new business wins
across both EMEA and Asia Pacific. In Marketing Services, we
delivered good growth in cross-channel marketing, data quality and
targeting services. Strength in these areas offset slight softness
in Credit Services.
Financial position
In the nine months to 31 December 2016, the Group spent US$324m
on net share repurchases.
Future events
Experian will release results for the year ending 31 March 2017
on Thursday 18 May 2017.
Contact:
Experian
Andrew Simms Head of Investor Relations +44 (0)20 3042 4195
Gerry Tschopp Senior VP, Group Communications +1 949 677 3377
Finsbury
Rollo Head +44 (0)20 7251 3801
Jenny Davey
This announcement is available on the Experian website at
http://www.experianplc.com. There will be a conference call today
to discuss this update at 9.00am (UK time), which will be broadcast
live on the website with a recording available later.
All financial information in this trading update is based on
unaudited management accounts. Certain statements made in this
trading update are forward-looking statements. Such statements are
based on current expectations and are subject to a number of risks
and uncertainties that could cause actual events or results to
differ materially from any expected future events or results
referred to in these forward-looking statements.
Neither the content of the Company's website, nor the content of
any website accessible from hyperlinks on the Company's website (or
any other website), is incorporated into, or forms part of, this
announcement.
About Experian
Experian is the world's leading global information services
company. During life's big moments - from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers - we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have 17,000 people operating across 37 countries and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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