REG - Experian plc - Experian Q3 FY24 trading update

ExperianAnnouncement

16/01/2024 07:01

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RNS Number : 7525Z  Experian plc  16 January 2024

 
 

news release

 

 

Trading update, third quarter

 

 

16 January 2024 ─ Experian plc, the global information services company,
today issues an update on trading for the three months ended 31 December
2023.

 

Brian Cassin, Chief Executive Officer, commented:

 

"We delivered good growth in Q3, at the upper end of our expectations. Revenue
was up 9% at actual exchange rates from ongoing activities and 7% at constant
exchange rates, with organic revenue growth of 6%.

 

For FY24, we now expect full year organic revenue growth to be between 5-6%,
with 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 2023

 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            6                       6                           5
 Latin America            25                      17                          13
 UK and Ireland           9                       3                           3
 EMEA and Asia Pacific    8                       8                           7
 Total global             9                       7                           6

1 Experian reports in US dollars.

 

% change in organic revenue year-on-year for the three months ended 31
December 2023

 Organic revenue growth %(2)  Data  Decisioning  B2B(3)  Consumer Services  Total

 North America                3     4            3       9                  5
 Latin America                9     12           10      26                 13
 UK and Ireland               9     (6)          3       0                  3
 EMEA and Asia Pacific        3     17           7       n/a                7
 Total global                 5     5            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 2023

 Segment              Business unit                          % of Group revenue(4)  Q3 organic revenue growth %(5)

 North America                                               67%                    5%
  Data                CI / BI Bureaux                        23%                    2%
                      - CI / BI Bureaux, excluding mortgage  21%                    3%
                      - Mortgage                             2%                     (6)%
                      Automotive                             5%                     10%
                      Targeting                              4%                     3%
  Decisioning         Health                                 8%                     7%
                      DA / Other                             5%                     (1)%
  Consumer Services   Consumer Services                      22%                    9%
 Latin America                                               15%                    13%
  Data                CI / BI Bureaux                        9%                     10%
                      Other                                  0%                     (11)%
  Decisioning         DA / Other                             3%                     12%
  Consumer Services   Consumer Services                      3%                     26%
 UK and Ireland                                              12%                    3%
  Data                CI / BI Bureaux                        5%                     9%
                      Targeting / Auto                       1%                     11%
  Decisioning         DA / Other                             3%                     (6)%
  Consumer Services   Consumer Services                      3%                     0%
 EMEA and Asia Pacific                                       6%                     7%
 Total global                                                100%                   6%

4 Percentage of Group revenue from ongoing activities calculated based on FY24
H1 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 5%. Total revenue growth was
6% including the contribution from an acquisition in health completed during
the quarter.

 

B2B organic revenue growth was 3%.

 

Positive contributions from Clarity, Experian Ascend and Employer Services
plus growth across larger clients offset continued volume weakness in smaller
fintechs and mortgage. Automotive delivered strongly led by higher marketing
activity by clients seeking to stimulate sales of new and used vehicle
inventory. Health performed strongly with positive contributions from major
product lines and from new products.

 

Consumer Services delivered organic revenue growth of 9%. We added to our
member count to take our free membership base to 69m. Premium services
performed well as did the insurance marketplace where new carrier on-boarding
has boosted policy volumes. The credit marketplace continues to reflect
constraints in credit supply. Partner Solutions performed very well,
benefiting from one-time business wins for databreach services.

Latin America - 15% of Group revenue(4)

Latin America delivered organic revenue growth of 13%. At constant currency,
total revenue growth was 17%, including contributions from acquisitions.

 

B2B organic revenue growth was 10%. In Brazil, we continue to grow our
relationships with clients and build out new vertical opportunities. Growth
was driven by adoption of positive data scores and analytics, our cloud-based
decisioning tools and fraud and identity management capabilities. Our
agribusiness vertical also performed strongly. Spanish Latin America benefited
from expansion in scores, analytics and fraud and identity management.

 

Consumer Services delivered organic revenue growth of 26%. We have added to
our free membership base, which reached the milestone of 100m in total for the
region (Brazil 86m and Spanish Latin America 14m). In Brazil, we benefited
from positive contributions from our Limpa Nome debt resolution service and
expanded e-wallet payment integrations.

 

UK and Ireland - 12% of Group revenue(4)

 

The UK and Ireland delivered organic revenue of growth of 3%. Total constant
currency growth at constant exchange rates was also 3%.

 

B2B organic revenue growth was 3%. We continue to perform strongly across
consumer bureau activities, outperforming the credit issuance market where
trends remain weak. This has been driven by sizeable new business wins and new
product initiatives, with strong performances for Ascend, analytics and
affordability products. Other Data activities also performed well. Decisioning
performance reflected deal phasing and the transition from legacy on-premise
software products to cloud-based solutions.

 

Organic revenue in Consumer Services was flat. This reflects continued
stability in subscription revenue trends and a positive contribution from
databreach services. Marketplace revenues continue to reflect soft market
conditions. Free memberships were 13m.

 

EMEA and Asia Pacific - 6% of Group revenue(4)

 

In EMEA and Asia Pacific, organic revenue growth was 7%. Total constant
currency revenue growth was 8%. There was strong progress across a number of
key markets, including Australia, India and Italy.

 

Future events

 

Experian will release results for the full year ending 31 March 2024 on
Wednesday, 15 May 2024.

 

Contact:

Experian

Nadia Ridout-Jamieson             Investor
queries                         +44 (0)20 3042 4220

Nick Jones                                Media
queries
 

 

Teneo

Graeme Wilson, Louise Male and Jessica
Reid                           +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 22,400 people operating across 32 countries and every day we're
investing in new technologies, talented people, and innovation to help all our
clients maximise every opportunity. With corporate headquarters in Dublin,
Ireland, 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.

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