TIDMEXPN
RNS Number : 6038F
Experian plc
16 July 2019
news release
Trading update, First quarter
16 July 2019 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 30 June 2019.
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"We have started the year well and in line with our
expectations. Q1 total revenue growth was 7% at constant exchange
rates and organic revenue growth was 6%. At actual exchange rates
total growth was 4%. We are excited about our prospects and for the
year ahead our guidance is unchanged."
% change in revenue from ongoing activities year-on-year for the
three months ended 30 June 2019
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange rates(1) exchange rates exchange rates
-------------------- ------------------- ---------------- ----------------
North America 9 9 8
Latin America (1) 9 9
UK and Ireland (6) - -
EMEA/Asia Pacific (1) 6 (1)
------------------- ---------------- ----------------
Experian 4 7 6
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars
% change in organic revenue year-on-year for the three months
ended 30 June 2019
Organic revenue Data Decisioning B2B(2) Consumer Experian
growth(1) Services
North America 8 7 8 9 8
Latin America 9 10 9 n/a 9
UK and Ireland 9 (13) (1) 1 -
EMEA/Asia Pacific 6 (8) (1) n/a (1)
----- ------------ ---------- ---------
Experian 8 - 6 8 6
------------------- ----- ------------ ------- ---------- ---------
1 Ongoing activities only, at constant exchange rates
2 B2B = Business-to-Business segment consisting of Data and
Decisioning business sub-divisions
North America
We delivered strong growth in North America, where organic
revenue increased by 8%. Total revenue growth was 9%, reflecting
the contribution from the recent acquisition of AllClear ID.
B2B performed well with organic growth of 8%, reflecting
strength in credit volumes, mortgage and contributions from new
products. There was strength across business credit, automotive,
health and decision analytics. Ascend continues to perform
strongly, with many of our largest clients now using the analytical
sandbox module. We have signed new agreements for new modules of
Ascend and expect to introduce additional modules over the course
of this year.
Consumer Services performed strongly, with organic revenue up
9%. Our membership base continues to expand and we have had an
extremely encouraging reception for Experian Boost. We now have c.
21m US consumers on our free membership platform, and as at 10
July, 1.2 million US consumers had connected their accounts to
Experian Boost, the new free service which enables consumers to
contribute data to their credit reports and potentially boost their
credit scores. This has accelerated revenue growth in CreditMatch,
our credit comparison offer, and, when combined with strong growth
from identity and partner solutions has led to a good performance
overall.
Latin America
We had a strong start to the year in Latin America, where both
total and organic revenue growth rose by 9% at constant currency.
Brazil performed strongly, with encouraging performances across the
business, including growth across consumer information, business
information, and a strong contribution from consumer, led by growth
in our Limpa Nome debt resolution services. Free consumer
memberships increased to 34 million by the quarter end. There was
also further growth in Spanish Latin America, especially in
Colombia.
UK and Ireland
In the UK and Ireland, total and organic revenue growth was flat
at constant currency.
Across B2B, we delivered a strong organic revenue performance in
Data which grew 9%, reflecting favourable credit volume trends and
particular strength in pre-qualification services. We have also
benefited from a growing contribution from our new product
innovations, including affordability services through our open-data
platforms and new client signings for Ascend. We also see good
prospects for trended data, where we have established a good
pipeline. As expected there was a decline in Decisioning organic
revenue of (13%) as we lapped a strong prior-year quarter when we
secured a large number of contract wins. Combined, this led to a
(1%) decline in organic revenue for B2B overall.
Consumer Services continued its improving trend and returned to
growth in the quarter, with organic revenue up 1%. Free memberships
are growing strongly, reaching 6.1 million by the end of the
quarter, and this gave rise to very strong growth in CreditMatcher,
our comparison service. We also saw some softening of the decline
in credit monitoring revenue as some free members upgraded to
paid-for premium services.
EMEA/Asia Pacific
At constant currency, total revenue growth across EMEA/Asia
Pacific was 6%, while organic revenue declined by (1%). The
difference related to the first-time contribution from the
Compuscan acquisition. Data performed well, with organic revenue
growth of 6%, with strength in India, the Nordics and Italy. As
expected, Decisioning organic revenue declined by (8%) as we lapped
strong prior comparables. Across EMEA/Asia Pacific, we see good
pipelines for Ascend, affordability, Decisioning and marketplace
offers, and in July we were pleased to complete a minority
investment in Grab, the leading everyday super-app in Southeast
Asia.
Foreign exchange modelling considerations
In May, we guided there was an expected 1% impact of foreign
exchange to Benchmark EBIT growth rates for the year ending 31
March 2020. Updating for the most recent movements in foreign
exchange, this guidance is unchanged.
Future events
Experian will release results for the first half ending 30
September 2019 on Tuesday 12 November 2019.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4215
Gerry Tschopp Media queries +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.
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 17,200 people operating across 44 countries and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximise 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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