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Experian: Strong consumer sales helps firm maintain expectations

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Strong growth in North America has helped consumer and data analytics firm Experian to maintain its positive start to the year.

Global revenue for the FTSE 100 constituent, which has benefited from the recovery in consumer spending, was up seven per cent year on year in the three months ending 30 June.

Its consumer services division—which provides credit education, identity monitoring, and fraud prevention services—was the firm’s best-performing arm. It registered growth of 11 per cent compared to the same period last year.

In Latin America – where the firm has a presence in Brazil and much of Spanish Latin America – the division performed especially well. This division registered growth of 24 per cent.

However, Experian added that it expects growth to slow down to more “normalised” levels in the quarters ahead.

Brian Cassin, Experian’s chief, said: “We delivered good growth” in the first quarter, “consistent with our expectations. Revenue was up seven per cent at actual exchange rates from ongoing activities and 8% at constant exchange rates, with organic revenue growth of seven per cent.

“Our growth expectations for the full year are unchanged. We continue to expect organic revenue growth of between six to eight per cent and margin accretion of 30-50 basis points, all at constant exchange rates and on an ongoing basis.”

The company said that in the UK and Ireland, its organic growth was at two per cent, while B2B organic revenue was also at the same rate.

“We continue to perform solidly amidst a still subdued credit market. New product initiatives remain a key growth driver, with notable contributors including Ascend, data quality services and fraud and identity management.”

The update adds to what has been an impressive set of recent results for the Dublin-headquartered firm, whose share price has risen nearly 17 per cent in the year to date.

In January it raised expectations off the back of good credit data numbers, and has managed to shore up a healthy bottom line, operating at a consistent 27 per cent profit margins, nearly double the FTSE 100 average.

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