Consumer and data analytics firm Experian raised its margin outlook after delivering an increase in revenue in the first half of the year.
Revenue was up six per cent in the six months to September, rising to $3.6bn (£2.83bn) from $3.4bn (£2.67bn) in the same period last year. Growth was fairly evenly distributed across the firm’s various markets.
Experian’s consumer-facing services recorded growth of nine per cent while in the B2B market revenue increased six per cent even though the market remains “below historical growth trends”.
It said this was due to innovation, selling different products to existing customers and expanding its client footprint.
Pretax profit fell six per cent in the first half, dropping to $718m. It said this was due to “non-cash movements in the fair value of our interest rate swaps”.
The firm still expects to deliver organic revenue growth of between six and eight per cent, but boss Brian Cassin said the firm was raising its margin outlook.
It now expects margin accretion to be towards the upper end of the 30-50 basis points guidance range.
“Experian’s raised profit margin forecast shows confidence in its current path,” Matt Britzman, senior equity analyst at Hargreaves Lansdown said.
“By strategically expanding its services and acquiring new capabilities in areas like fraud prevention, it’s well-positioned to keep growing into 2025.”
“This focus on practical solutions for businesses and consumers alike sets Experian up as a leading player in the credit bureau sector, with solid momentum despite what remains a soft credit market,” he said.
Shares were trading 1.1 per cent lower in early trade.