TIDMEXPN
RNS Number : 8792M
Experian plc
17 January 2023
news release
Trading update, third quarter
17 January 2023 -- Experian plc, the global information services
company, today issues an update on trading for the three months
ended 31 December 2022.
Brian Cassin, Chief Executive Officer, commented:
"We delivered a good performance in Q3, in line with our
expectations, driven by new products, new business wins and
consumer expansion. At constant exchange rates, organic revenue
growth was 6% and total revenue growth was 7%. After the impact of
foreign exchange rates total revenue growth was 4%.
"While pressures in the global economy are likely to continue
for some time, we expect to remain resilient, supported by the
delivery of our growth strategy and growth in countercyclical
revenue streams. For the full year our expectations are unchanged,
for organic revenue growth of between 7-9%, total revenue growth of
between 8-10% and modest margin accretion, all at constant exchange
rates and on an ongoing basis ."
% change in revenue from ongoing activities year-on-year for the
three months ended
31 December 2022
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 5 5 5
Latin America 21 17 16
UK and Ireland (7) 6 6
EMEA/Asia Pacific (10) 1 1
------------------- ---------------- ----------------
Total global 4 7 6
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months
ended 31 December 2022
Organic revenue growth Data Decisioning B2B(3) Consumer Total
% (2) Services
North America 2 5 2 9 5
Latin America 10 14 11 40 16
UK and Ireland 7 15 10 (8) 6
EMEA/Asia Pacific (3) 16 1 n/a 1
----- ------------ ---------- ------
Total global 3 9 5 10 6
------------------------ ----- ------------ ------- ---------- ------
2 Ongoing activities only, at constant exchange rates.
3 B2B = Business-to-Business segment which 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 2022
Segment Business unit % of Group Q3 organic
revenue(4) revenue
growth %(5)
------------------------------ ------------ -------------
North America 68% 5%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 25% (2)%
--------------------
- CI / BI Bureaux, excluding
mortgage 22% 5%
- Mortgage 3% (42)%
Automotive 5% 7%
Targeting 3% 14%
--------------------------------------------------- ------------ -------------
Decisioning Health 8% 4%
--------------------
DA / Other 4% 7%
--------------------------------------------------- ------------ -------------
Consumer Services Consumer Services 23% 9%
-------------------- ------------------------------ ------------ -------------
Latin America 14% 16%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 9% 11%
--------------------
Other 0% (3)%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 3% 14%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 2% 40%
-------------------- ------------------------------ ------------ -------------
UK and Ireland 12% 6%
---------------------------------------------------- ------------ -------------
Data CI / BI Bureaux 5% 7%
--------------------
Targeting / Auto 1% 9%
--------------------------------------------------- ------------ -------------
Decisioning DA / Other 3% 15%
-------------------- ------------------------------ ------------ -------------
Consumer Services Consumer Services 3% (8)%
-------------------- ------------------------------ ------------ -------------
EMEA/Asia Pacific 6% 1%
---------------------------------------------------- ------------ -------------
Total global 100% 6%
---------------------------------------------------- ------------ -------------
4 Percentage of Group revenue from ongoing activities calculated
based on H1 FY23 revenue at actual exchange rates.
5 Ongoing activities only, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA =
Decision Analytics.
North America - 68% of Group revenue(4)
North America delivered organic and total revenue growth of
5%.
B2B organic revenue growth was 2% reflecting good progress on
new products, partially offset by mortgage decline and strong
prior-year comparables in short term lending and health. While some
clients have further tightened credit criteria, consumer and
business information contributed favourably, excluding mortgage,
and as we lapped last year's strong holiday season. Experian Ascend
contributed strongly, securing new client wins, and we continue to
make good progress across decisioning software, analytics and fraud
and identity management. Verification services also performed
strongly. Targeting and automotive performed well supported by new
product performance and new business wins, as did health, excluding
the prior-year COVID-19 related one-off item.
Consumer Services organic revenue growth was 9%, reflecting
growth in marketplace, premium services and partner solutions. We
are developing new propositions to help consumers build credit and
manage their finances and we are rolling out Experian Activate to
help our lender partners target credit offers more precisely. Paid
enrolments performed strongly, and we are adding free members to
take our free membership base to 59m.
Latin America - 14% of Group revenue (4)
Latin America delivered organic revenue growth of 16%. At
constant currency, total revenue growth was 17%, including
contributions from acquisitions in Consumer Services, and from our
new bureaux in Chile and Panama.
B2B organic revenue growth was 11%. In Brazil, we continue to
benefit from client adoption of positive data products. We have
also secured new implementations for Experian Ascend, and we have
strong traction with our cloud-enabled decisioning platforms. We
also see growing contributions from our small and medium enterprise
channel and our agribusiness vertical. Spanish Latin America
delivered a strong performance as we expand our presence across the
region.
Consumer Services delivered organic revenue growth of 40%. Free
consumer memberships in Brazil rose to 78m. We delivered a very
successful Limpa Nome credit fair, which helps consumers to resolve
and settle bills, and our credit comparison marketplace and premium
services also delivered good growth.
UK and Ireland - 12% of Group revenue (4)
Performance in the UK & Ireland was encouraging, delivering
organic and total constant currency revenue growth of 6%,
notwithstanding challenges in the economy and specific market
disruption during October.
B2B organic revenue growth was 10%. This reflects strong results
from new products and good execution across all major B2B business
units, including consumer credit information, business credit
information, analytics, fraud and identity management and
targeting, and helped by a strong new business win performance.
Most lenders continue to extend credit, having tightened criteria
and reduced supply in some categories, while consumer demand for
credit is generally elevated. Lender appetite is increasing for
analytics to monitor affordability and to derive cost-of living
insights, as well as for data and analytics to provide visibility
on small business economic exposure.
Organic revenue in Consumer Services declined 8%, as volumes
moderated in our credit marketplace, reflecting the lending market
disruption in October and tighter lending conditions, as well
reduced premium subscription revenue. Free memberships were
12m.
EMEA/Asia Pacific - 6% of Group revenue (4)
Organic revenue growth and total revenue growth at constant
exchange rates across EMEA/Asia Pacific was 1%, with growth across
the majority of our strategic markets. We are making good progress
on our plan to strengthen and focus our EMEA/Asia Pacific
operations.
Future events
Experian will release results for the full year ending 31 March
2023 on Wednesday, 17 May 2023.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4200
Gerry Tschopp, Nick Jones 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 21,700 people operating across 30 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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