REG - Experian plc - Trading update, first quarter

ExperianAnnouncement

13/07/2023 07:00

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RNS Number : 8518F  Experian plc  13 July 2023

 
 

news release

 

 

Trading update, first quarter

 

 

13 July 2023 ─ Experian plc, the global information services company, today
issues an update on trading for the first three months ended 30 June 2023.

 

Brian Cassin, Chief Executive Officer, commented:

 

"We delivered good growth in Q1, in line with our expectations. Total revenue
growth at actual exchange rates was 5% and also at constant exchange rates.
Organic revenue growth was 5%.

 

Our growth expectations for the full year are unchanged reflecting the
strength and diversity of our business. We continue to expect organic revenue
growth of between 4-6% 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

30 June 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            4                       4                           4
 Latin America            12                      14                          13
 UK and Ireland           1                       1                           1
 EMEA/Asia Pacific        5                       8                           8
 Total global             5                       5                           5

1 Experian reports in US dollars.

 

% change in organic revenue year-on-year for the three months ended 30 June
2023

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

 North America                3     7            4       3                  4
 Latin America                9     15           10      26                 13
 UK and Ireland               2     0            1       (2)                1
 EMEA/Asia Pacific            4     21           8       n/a                8
 Total global                 4     8            5       4                  5

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 2023

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

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

4 Percentage of Group revenue from ongoing activities calculated based on 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 - 67% of Group revenue(4)

 

North America delivered organic and total revenue growth of 4%.

 

B2B organic revenue growth was 4%. Favourable contributions from Clarity,
buy-now-pay-later clients, Experian Ascend and business credit offset weaker
volume trends linked to traditional consumer credit origination activity, as
well as in mortgage. Employer and Verification Services grew strongly, and we
continue to add to our record count and build our position through new client
acquisition. Targeting performed strongly, with growth across digital
channels, driven by usage expansion arising from new client integrations.
Automotive also delivered solidly, helped by improvement in industry inventory
supply, and we continue to make good progress across health.

 

Consumer Services delivered organic revenue growth of 3%. We added to our
member count to take our free membership base to 64m. Premium services
performed well following additions to our paid membership base. While credit
marketplace volumes were impacted by tighter lending standards, we onboarded
new partners in the quarter and are successfully driving adoption of Experian
Activate. We have also made good progress in insurance, which continues to
trend positively.

 

Latin America - 15% of Group revenue(4)

Latin America delivered organic revenue growth of 13%. At constant currency,
total revenue growth was 14%, including contributions from small acquisitions.

 

B2B organic revenue growth was 10%. In Brazil, we are expanding our client
footprint and entering new vertical opportunities. Momentum was again strong,
reflecting wider adoption of positive data propositions, cloud-based
decisioning tools and analytics. Our footprint in agribusiness continues to
grow, as we added new customers to support lending in the agriculture sector.

 

Consumer Services delivered organic revenue growth of 26%. This included
further expansion of our free membership base, which rose to 95m in total for
the region (Brazil 82m and Spanish Latin America 13m). In Brazil, we further
expanded our Limpa Nome debt resolution service by adding new partners. We
also benefited from an increased contribution from payment solutions and
premium services.

 

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

 

The UK and Ireland delivered organic and total constant currency revenue
growth of 1%.

 

B2B organic revenue growth was 1%. Despite weaker lending volumes, all major
B2B business units delivered growth, sustained by further new business wins
and new product initiatives. Lenders are generally cautious and have repriced
and reduced credit supply in some categories. Client appetite for solutions
which support affordability assessment and portfolio analysis has trended
positively, helping to mitigate this trend.

 

Organic revenue in Consumer Services declined (2%), reflecting the impact of
supply contraction in our credit marketplace as well as lower premium
subscription revenue. Free memberships increased to 13m.

 

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

 

In EMEA/Asia Pacific, organic revenue growth was 8%, as was total revenue
growth at constant exchange rates. We are making good progress on our plan to
enhance growth performance within scaled markets. The majority of our
strategic markets contributed positively, with notably strong progression
across Italy, Australia and India.

 

 

Future events

 

Experian will release its half-year results on Wednesday, 15 November 2023,
and its third-quarter trading update on Tuesday, 16 January 2024.

 

Contact:

 Experian
 Nadia Ridout-Jamieson          Investor queries  +44 (0)20 3042 4220
 Gerry Tschopp, Nick Jones      Media queries

 Teneo
 Graeme Wilson and Louise Male                    +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 22,000 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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