REG - Experian plc - Trading update, first quarter

ExperianAnnouncement

16/07/2024 07:00

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RNS Number : 4857W  Experian plc  16 July 2024

 
 

news release

 

 

Trading update, first quarter

 

 

16 July 2024 ─ Experian plc, the global data and technology company, today
issues an update on trading for the three months ended 30 June 2024.

 

Brian Cassin, Chief Executive Officer, commented:

 

"We delivered good growth in Q1, consistent with our expectations. Revenue was
up 7% at actual exchange rates from ongoing activities and 8% at constant
exchange rates, with organic revenue growth of 7%.

 

Our growth expectations for the full year are unchanged. We continue to expect
organic revenue growth of between 6-8% and margin accretion 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

30 June 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            8                       8                           8
 Latin America            4                       8                           5
 UK and Ireland           4                       3                           2
 EMEA and Asia Pacific    5                       7                           7
 Total global             7                       8                           7

1 Experian reports in US dollars.

 

% change in organic revenue year-on-year for the three months ended 30 June
2024

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

 North America                6     8            7       10                 8
 Latin America                (1)   5            1       24                 5
 UK and Ireland               1     3            2       4                  2
 EMEA and Asia Pacific        3     15           7       n/a                7
 Total global                 4     7            5       11                 7

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 2024

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

 North America                                               66%                    8%
  Data                CI / BI Bureaux                        23%                    6%
                      - CI / BI Bureaux, excluding mortgage  21%                    2%
                      - Mortgage Profiles                    2%                     37%
                      Automotive                             5%                     9%
                      Targeting                              4%                     5%
  Decisioning         Health                                 8%                     8%
                      DA / Other                             4%                     7%
  Consumer Services   Consumer Services                      22%                    10%
 Latin America                                               16%                    5%
  Data                CI / BI Bureaux                        10%                    (1%)
                      Other                                  0%                     17%
  Decisioning         DA / Other                             3%                     5%
  Consumer Services   Consumer Services                      3%                     24%
 UK and Ireland                                              12%                    2%
  Data                CI / BI Bureaux                        5%                     4%
                      Targeting / Auto                       1%                     (14%)
  Decisioning         DA / Other                             3%                     3%
  Consumer Services   Consumer Services                      3%                     4%
 EMEA and Asia Pacific                                       6%                     7%
 Total global                                                100%                   7%

4 Percentage of Group revenue from ongoing activities calculated based on FY24
FY revenue at actual exchange rates.

5 Ongoing activities only, at constant exchange rates.

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

 

North America - 66% of Group revenue(4)

 

North America delivered organic revenue growth of 8%. Total constant currency
revenue growth was also 8%.

 

B2B organic revenue growth was 7%. Key growth contributors included mortgage,
identity and fraud, Ascend, and income and employment verification, with the
underlying credit origination environment remaining stable. Automotive
delivered strong growth reflecting industry marketing activity in response to
rising vehicle inventory levels. Targeting growth was solid driven by digital
channels and was supported by new logos and cross sells. Health performed well
with strong bookings and growth across multiple product lines including
coverage discovery, claims, and collections.

 

Consumer Services delivered an organic revenue uplift of 10%, with growth
broadly spread across our portfolio. Premium memberships performed well
supported by recently introduced financial health features which help our
members to save money. In our marketplace, insurance performance was very
strong supported by carrier roll-outs, helping to mitigate ongoing softness in
credit. We also continued to make good progress in data breach services where
we secured additional client wins.

Latin America - 16% of Group revenue(4)

Latin America delivered organic revenue growth of 5%. At constant currency,
total revenue growth was 8%, including contributions from acquisitions.

 

B2B organic revenue growth was 1%. In Brazil, we continue to extend our
capabilities and position ourselves to capitalise on secular trends in the
market. While quarterly growth reflected deal timing and widespread flooding
in Rio Grande do Sul, we expect to return to more normalised levels of growth
in the quarters ahead. Importantly, we continue to make progress in key focus
areas, with strong identity and fraud growth and further scaling of both our
small and medium enterprise and agrifinance segments. Spanish Latin America
benefited from expansion in scores and analytics.

 

Consumer Services delivered organic revenue growth of 24%. In Brazil, growth
was driven by Limpa Nome, with higher volumes of debt renegotiation and
increased conversion rates via the Serasa e-wallet.

 

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

 

The UK and Ireland delivered organic revenue of growth of 2%. Total constant
currency growth was 3%.

 

B2B organic revenue growth was 2%. We continue to perform solidly amidst a
still subdued credit market. New product initiatives remain a key growth
driver, with notable contributors including Ascend, data quality services and
fraud and identity management.

 

Consumer Services delivered organic revenue growth of 4%, which reflects
expansion in both marketplace and subscription revenue. Successful platform
enhancements have improved consumer experience and further strengthened our
lender panel.

 

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 also 7%. There was good performance across the
majority of our markets, and we continue to make good progress on our plan to
focus on key markets and increase innovation-led growth.

 

 

Future events

 

Experian will release results for the half year ending 30 September 2024 on
Wednesday, 13 November 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 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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