REG - Experian plc - Experian Q3 FY23 trading update

ExperianAnnouncement

17/01/2023 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230117:nRSQ8792Ma&default-theme=true

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 only  Total revenue growth %  Total revenue growth %      Organic revenue growth %
                          At actual               At constant exchange rates  At constant exchange rates

                          exchange rates(1)
 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 %(2)  Data  Decisioning  B2B(3)  Consumer Services  Total

 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 revenue(4)  Q3 organic 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
(http://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 (http://www.experianplc.com) or visit our
global content hub at our global news blog
(https://www.experian.com/blogs/news/) 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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFITLDIRLIV