REG - Experian plc - Trading update, first quarter

ExperianAnnouncement

14/07/2022 07:00

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RNS Number : 4099S  Experian plc  14 July 2022

news release

 

 

Trading update, first quarter

 

 

14 July 2022 ─ Experian plc, the global information services company, today
issues an update on trading for the first three months ended 30 June 2022.

 

Brian Cassin, Chief Executive Officer, commented:

 

"We grew strongly in Q1, in line with our expectations, underpinned by our
portfolio diversity and growth initiatives. Total revenue growth was 7% at
actual exchange rates and 9% at constant exchange rates. Organic revenue
growth was 8%.

 

"Our expectations for the full year are unchanged. We expect organic revenue
growth in the range of 7-9%, total revenue growth in the range of 8-10% and
modest margin accretion, all at constant exchange rates."

 

% change in revenue from ongoing activities year-on-year for the three months
ended

30 June 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            8                       8                           7
 Latin America            30                      23                          18
 UK and Ireland           (6)                     5                           5
 EMEA/Asia Pacific        (8)                     1                           1
 Total global             7                       9                           8

1 Experian reports in US dollars.

 

% change in organic revenue year-on-year for the three months ended 30 June
2022

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

 North America                4     6            5       13                 7
 Latin America                13    20           15      42                 18
 UK and Ireland               8     2            6       0                  5
 EMEA/Asia Pacific            1     2            1       n/a                1
 Total global                 6     6            6       13                 8

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 30 June 2022

 Segment              Business unit                          % of Group revenue(4)  Q1 organic revenue growth %(5)

 North America                                               65%                    7%
  Data                CI / BI Bureaux                        24%                    3%
                      - CI / BI Bureaux, excluding mortgage  20%                    11%
                      - Mortgage                             4%                     (31)%
                      Automotive                             4%                     4%
                      Targeting                              3%                     11%
  Decisioning         Health                                 8%                     5%
                      DA / Other                             5%                     7%
  Consumer Services   Consumer Services                      21%                    13%
 Latin America                                               13%                    18%
  Data                CI / BI Bureaux                        8%                     14%
                      Other                                  1%                     5%
  Decisioning         DA / Other                             2%                     20%
  Consumer Services   Consumer Services                      2%                     42%
 UK and Ireland                                              14%                    5%
  Data                CI / BI Bureaux                        6%                     9%
                      Targeting / Auto                       1%                     3%
  Decisioning         DA / Other                             4%                     2%
  Consumer Services   Consumer Services                      3%                     0%
 EMEA/Asia Pacific                                           8%                     1%
 Total global                                                100%                   8%

4 Percentage of Group revenue from ongoing activities calculated based on FY22
revenue at actual exchange rates.

5 Ongoing activities only, at constant exchange rates.

CI = Consumer Information, BI = Business Information, DA = Decision Analytics.

 

 

North America - 65% of Group revenue(4)

 

North America delivered organic revenue growth of 7%, with ongoing strength in
bureau volumes (excluding mortgage), good demand for analytics and software,
expansion in the key verticals of health, targeting, automotive and
verification services, and continued momentum in Consumer Services.
Respectively, growth was 5% and 13% across B2B and Consumer Services. Total
revenue growth was 8% including acquisition contributions from verification
services and from insurance marketplaces.

 

In B2B, our clients continue to invest in developing their digital platforms,
helping to drive growth across all major business units. In financial services
most clients continue to focus on new credit issuance and investment in their
digital infrastructure. Bureau volumes were strong, excepting mortgage. Our
analytical and decisioning suite performed well, with good demand for
analytics, and growth in decisioning software and across fraud and identity
management. Our major verticals also performed robustly.

 

Consumer Services has started the year strongly, delivering growth of 13%. Our
credit marketplace performed very well, reflecting our ability to deliver
large audiences to our lending partners as our free membership base reached
55m. There was particularly good growth in cards and loans, with strength in
both demand and supply of credit. As expected, paid membership was stable.

 

Latin America - 13% of Group revenue(4)

 

Latin America maintained its strong trajectory delivering organic revenue
growth of 18%. At constant currency, total revenue growth was 23%, including
contributions from acquisitions in fraud and identity management, and in
Consumer Services, and from our new bureau in Chile.

 

B2B organic revenue growth was 15%. In Brazil, bureau volume growth was
strong, driven by client adoption of our positive data scores, features and
attributes. The number of installations of Experian Ascend also increased and
we continue to see good take-up of our cloud-enabled decisioning platforms. We
also saw growing contributions from fraud and identity management, our small
and medium enterprise channel and our new agribusiness vertical.

 

Consumer Services delivered organic revenue growth of 42%. Free consumer
memberships in Brazil rose to 73m, whilst our credit collection marketplace
Limpa Nome, and our credit comparison marketplace both performed strongly.

 

UK and Ireland - 14% of Group revenue(4)

 

Organic and total constant currency revenue growth in the UK and Ireland was
5%.

 

While the macroeconomic outlook in the UK has softened, our UK and Ireland B2B
operations have been resilient delivering organic growth of 6%. This reflects
strong new business traction and particularly good progress across our
consumer credit, business credit and fraud and identity management activities.
Our clients continue to invest in new credit origination and bureau volumes
have been good. We continue to progress our innovation strategy, including
rapid progress in building a new capability in income and employment
verification.

 

Organic revenue in Consumer Services was flat, with strong growth in
transaction volumes across our credit comparison marketplace, offset by
moderation in our premium subscription services as we lapped a strong prior
year comparable. Free memberships were 11m.

 

EMEA/Asia Pacific - 8% of Group revenue(4)

 

Organic revenue growth and total revenue growth at constant exchange rates
across EMEA/Asia Pacific was 1%. Overall performance was affected by weak
macroeconomic conditions in some markets. We continue to execute on our
strategy to concentrate on strategic markets where we can drive scale while
also enhancing operating efficiency.

 

Future events

 

Experian will release its half year results on Wednesday, 16 November 2022.

 

 Contact:
 Experian
 Nadia Ridout-Jamieson                     Investor queries  +44 (0)20 3042 4278
 Gerry Tschopp                             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 20,600 people operating across 43 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.

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