REG - Experian plc - Experian Q3 FY25 trading update

ExperianAnnouncement

15/01/2025 07:00

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RNS Number : 3169T  Experian plc  15 January 2025

 
 

news release

 

 

Trading update, third quarter FY25

 

 

15 January 2025 ─ Experian plc, the global data and technology company,
today issues an update on trading for the three months ended 31 December
2024.

 

Brian Cassin, Chief Executive Officer, commented:

 

"We delivered another strong quarter of growth in Q3, with total revenue at
constant exchange rates of 8%. Organic revenue headline growth was 6%.
Excluding data breach services, organic revenue grew 8%, maintaining recent
strong performance and reflecting good underlying business trends. Foreign
exchange was a 2% headwind during the quarter.

 

"Our growth expectations for the full year are unchanged. We continue to
expect organic revenue growth of between 6-8% and margin accretion at the
upper end of 30-50 basis points, 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 2024

 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            7                       7                           6
 Latin America            (6)                     10                          8
 UK and Ireland           4                       1                           1
 EMEA and Asia Pacific    35                      35                          9
 Total global             6                       8                           6

1 Experian reports in US dollars.

 

% change in organic revenue year-on-year for the three months ended 31
December 2024

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

 North America                9     4            8       2                  6
 Latin America                1     11           4       22                 8
 UK and Ireland               0     (3)          (1)     10                 1
 EMEA and Asia Pacific        4     23           9       n/a                9
 Total global                 6     5            6       5                  6

2 Ongoing activities only, at constant exchange rates.

3 B2B = Business-to-Bustiness segment which consists of Data and Decisioning

Business mix including % change in organic revenue year-on-year for the three
months ended 31 December 2024

 Segment              Business unit                          % of Group revenue(3)  Q3 organic revenue growth %(4)

 North America                                               68%                    6%
  Data                CI / BI Bureaux                        24%                    11%
                      - CI / BI Bureaux, excluding mortgage  21%                    6%
                      - Mortgage Profiles                    3%                     71%
                      Automotive                             5%                     8%
                      Targeting                              4%                     4%
  Decisioning         Health                                 9%                     5%
                      DA / Other                             4%                     2%
  B2B                 Business-to-Business                   46%                    8%
  Consumer Services   Consumer Services                      22%                    2%
 Latin America                                               14%                    8%
  Data                CI / BI Bureaux                        8%                     1%
                      Other                                  0%                     20%
  Decisioning         DA / Other                             3%                     11%
  B2B                 Business-to-Business                   11%                    4%
  Consumer Services   Consumer Services                      3%                     22%
 UK and Ireland                                              12%                    1%
  Data                CI / BI Bureaux                        5%                     0%
                      Targeting / Auto                       1%                     0%
  Decisioning         DA / Other                             3%                     (3)%
  B2B                 Business-to-Business                   9%                     (1)%
  Consumer Services   Consumer Services                      3%                     10%
 EMEA and Asia Pacific                                       6%                     9%
 Total global                                                100%                   6%

4 Percentage of Group revenue from ongoing activities calculated based on FY25
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 - 68% of Group revenue(4)

 

We continue to see steadily improving underlying trends in North America.
North America delivered organic revenue growth of 6%, or 9% excluding data
breach services. Total revenue growth was 7%.

 

B2B organic revenue growth was 8%. Key growth contributors included mortgage,
Clarity, and our Ascend analytics and marketing solutions, with the underlying
unsecured credit origination environment remaining stable. Automotive
delivered strong growth, with good performance across the product suite.
Targeting growth was solid, with our audience identity and activation
solutions continuing to gain traction in the digital market. Health performed
well with continued bookings momentum and strong growth in claims management,
collections, and patient access.

 

Consumer Services delivered organic revenue growth of 2%. Excluding data
breach revenue, organic growth accelerated to 14% with broad strength across
our business lines. Premium membership grew well, benefiting from good
enrolment and churn performance, reflecting the strength of our financial
health propositions. In our marketplace, insurance delivered strongly. We have
further enhanced our offers, which has driven consumer demand and reflects an
expanding position with insurance carriers. Our progress demonstrates the
growing effectiveness of our marketplace as a customer acquisition channel.
Credit marketplace returned to growth, supported by the onboarding of new
partners onto our Activate capability. As expected, Partner Solutions was
impacted by a decline in data breach revenue.

Latin America - 14% of Group revenue(4)

Latin America delivered organic revenue growth of 8%, in-line with our
expectations. At constant currency, total revenue growth was 10%, including
contributions from acquisitions. Foreign exchange rates were a headwind to
growth, with revenue at actual exchanges rates declining (6)%.

 

B2B organic revenue growth was 4%. In Brazil, we continue to make progress on
our strategic priorities. Our software offerings and small and medium
enterprise segment drove performance in the quarter, helping offset continued
macro uncertainty in the region. Spanish Latin America benefited from strength
in decisioning and analytics.

 

Consumer Services delivered organic revenue growth of 22%. In Brazil, Limpa
Nome performance was strong, as we help consumers renegotiate and settle their
outstanding debts. Growth benefited from a successful Limpa Nome Fair. Our
credit marketplace also performed well, benefiting from new partner
integrations and strong user engagement.

 

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

 

The UK and Ireland delivered organic revenue of growth of 1%. Total constant
currency growth was also 1% and revenue at actual exchange rates increased 4%.

 

B2B organic revenue was (1)% lower. We are progressing with new initiatives
like Verifications and Ascend, though a subdued UK economic backdrop and other
one-time factors weighed on growth in the quarter.

 

Consumer Services delivered organic revenue growth of 10%, with growth in both
subscription and marketplace revenue. Product enhancements drove subscription
growth, while marketplace benefited from strong customer engagement and
enhancements to our lender panel.

 

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

 

In EMEA and Asia Pacific, organic revenue growth was 9%. Total constant
currency revenue growth was 35%, driven by the recently completed acquisition
of illion. We grew broadly across our underlying markets, with particular
strength in Australia, South East Asia and India. We continue to progress on
our strategic priorities to focus on our key markets, accelerate innovation
revenue, and enhance our position with core clients.

 

 

Future events

 

Experian will release results for the full year ending 31 March 2025 on
Wednesday, 14 May 2025.

 

Contact:

Experian

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

Nick Jones                                 Media queries
                          +44 (0)79 7673 4702

 

Teneo

Graeme Wilson and Louise Male
                  +44 (0)20 7353 4200

 

This announcement is available on the Experian website at 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 a global data and technology company, powering opportunities for
people and businesses around the world. We help to redefine lending practices,
uncover and prevent fraud, simplify healthcare, deliver digital marketing
solutions, and gain deeper insights into the automotive market, all using our
unique combination of data, analytics and software. We also assist millions of
people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare,
automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power
of data and innovate. As a FTSE 100 Index company listed on the London Stock
Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our
corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com
(http://www.experianplc.com) .

 

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