TIDMEXPN
RNS Number : 4128Y
Experian plc
14 January 2022
news release
Trading update, third quarter
14 January 2022 -- Experian plc, the global information services
company, today issues an update on trading for the three months
ended 31 December 2021.
Brian Cassin, Chief Executive Officer, commented:
"Performance in Q3 was at the upper end of our expectations.
Total revenue growth was 14% at actual exchange rates and 15% at
constant exchange rates. Organic revenue growth was 11%.
"We now expect organic revenue growth for the full year to be in
the range of 12-13%, with total revenue growth now expected in the
range of 16-17%, at constant exchange rates. We continue to expect
strong EBIT margin accretion, also at constant exchange rates."
% change in revenue from ongoing activities year-on-year for the
three months ended
31 December 2021
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 16 16 13
Latin America 16 21 11
UK and Ireland 10 8 8
EMEA/Asia Pacific 4 6 0
------------------- ---------------- ----------------
Total global 14 15 11
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months
ended 31 December 2021
Organic revenue growth Data Decisioning B2B(3) Consumer Total
% (2) Services
North America 7 16 10 19 13
Latin America 10 9 10 19 11
UK and Ireland 6 7 6 13 8
EMEA/Asia Pacific 3 (6) 0 n/a 0
----- ------------ ---------- ------
Total global 7 11 8 19 11
------------------------ ----- ------------ ------- ---------- ------
2 Ongoing activities only, at constant exchange rates.
3 B2B = Business-to-Business segment consists of Data and
Decisioning business sub-divisions.
Business mix including % change in organic revenue year-on-year
for the three months ended 31 December 2021
Segment Business unit % of Group Q3 organic
revenue(4) revenue
growth %(5)
------------------------------ ------------ -------------
North America 67% 13%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 25% 8%
--------------------
- CI / BI Bureaux, excluding
mortgage 21% 15%
- Mortgage 4% (21)%
Automotive 4% 4%
Targeting 4% 7%
--------------------------------------------------- ------------ -------------
Decisioning Health 8% 17%
--------------------
DA / Other 5% 13%
--------------------------------------------------- ------------ -------------
Consumer Services Consumer Services 21% 19%
-------------------- ------------------------------ ------------ -------------
Latin America 12% 11%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 8% 10%
--------------------
Other 0% 14%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 2% 9%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 2% 19%
-------------------- ------------------------------ ------------ -------------
UK and Ireland 13% 8%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 5% 6%
--------------------
Targeting / Auto 1% 4%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 4% 7%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 3% 13%
-------------------- ------------------------------ ------------ -------------
EMEA/Asia Pacific 8% 0%
---------------------------------------------------- ------------ -------------
EMEA 5% (4)%
---------------------------------------------------- ------------ -------------
Asia Pacific 3% 10%
---------------------------------------------------- ------------ -------------
Total global 100% 11%
---------------------------------------------------- ------------ -------------
4 Percentage of group revenue from ongoing activities calculated
based on H1 FY22 revenue at actual exchange rates.
5 Ongoing activities only, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA =
Decision Analytics.
North America - 67% of Group revenue(4)
North America delivered organic revenue growth of 13%, driven by
further progress of our strategic initiatives, strength in bureau
volumes (excluding mortgage), vertical expansion, and strong
momentum in Consumer Services. Respectively, growth was 10% and 19%
across B2B and Consumer Services. Total revenue growth was 16%,
including acquisition contributions in targeting, verification
services and insurance marketplaces.
In B2B, we see good appetite by our financial services clients
for data and propositions which support new credit origination and
digitisation of their underwriting infrastructure. With the
exception of mortgage, bureau volumes have been strong, including a
step-up in short term lending linked to the holiday season, and
Ascend also had a particularly strong quarter. Decisioning
performed very well, with significant traction in fraud and
identity management, software and analytical services. Health
delivered a very strong quarter, with momentum in propositions
which drive digital patient interactions as well as in identity
management, which continues to include a contribution from COVID-19
related activity. There was further progress across verification
services, with new client wins for Experian Verify as well as for
employer services, and good progress in acquiring records. Auto and
Targeting also continued to perform well.
Consumer Services, our fastest growing segment in North America,
now has a free membership base of 49m. Our performance reflects
free membership growth and a very strong performance in cards and
loans across our marketplace. Volumes on our lending panel were
particularly strong in the quarter as consumers shop for credit and
access a wide range of lending offers on our platform. We are also
progressing the development of our insurance marketplace, which is
in the early stages of scaling as we integrate the Gabi
acquisition.
Latin America - 12% of Group revenue (4)
Latin America delivered organic revenue growth of 11%. At
constant currency, total revenue growth was 21%, including
contributions from acquisitions in fraud and identity management,
our new bureau in Chile and in Consumer Services.
B2B organic revenue was up 10%. Our B2B business has maintained
a strong trajectory reflecting successful execution of our
strategic initiatives, including strong demand for positive data
propositions. Drivers of performance in the quarter were higher
bureau volumes, including adoption of positive data scores and
attributes in Brazil. We also secured new wins for our global
platforms, including Experian Ascend, with good demand for our
advanced analytics and decisioning platforms.
Consumer Services delivered organic revenue growth of 19%. Free
consumer memberships rose to 68m. We are making good progress on
our strategy to expand the ecosystem of offers we make available to
our membership base. Our credit comparison marketplace contributed
strongly in the quarter and there was good uptake too of our
premium identity management offer. This adds to our collections
marketplace, Limpa Nome, which helps consumers to resolve and
settle bills, both online and through our leading annual credit
fair which took place in November and December and was very well
attended.
UK and Ireland - 13% of Group revenue (4)
We continue to see good execution on our strategic plan in the
UK and Ireland where organic and total constant currency revenue
growth was 8%.
Organic growth in B2B revenues was 6%. Credit origination and
pre-qualification volumes have been robust, stimulated by market
recovery and new business wins. We are making good progress in new
client segments, such as buy now pay later. Uptake of B2B platforms
and other new products is also encouraging as clients upgrade their
core underwriting systems. This includes 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 our advanced
analytics.
Organic revenue growth in Consumer Services was 13%. Transaction
volumes across our credit comparison marketplace were very strong,
reflecting growth in free memberships (now 10.8m) and buoyant
market conditions.
EMEA/Asia Pacific - 8% of Group revenue (4)
Organic revenue growth across EMEA/Asia Pacific was flat and
total revenue growth was 6% at constant exchange rates, including
the contribution from the bureau acquisition in Spain.
Bureau volumes have continued to slowly recover from the worst
effects of the COVID-19 restrictions. We continue to focus on
driving performance improvement across the region through measures
to focus on scale, simplify our operations and by enhancing
operating efficiency.
Future events
Experian will release results for the full year ending 31 March
2022 on Wednesday, 18 May 2022.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4278
Gerry Tschopp Media queries
Tulchan
Graeme Wilson, Louise Male and Guy Bates +44 (0)20 7353 4200
This announcement is available on the Experian website at
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 20,000 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.
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END
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