TIDMEXPN
RNS Number : 0951A
Experian plc
17 January 2020
news release
Trading update, Third quarter
17 January 2020 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 31 December 2019.
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"We delivered another quarter of good growth as we execute on
our strategy of innovation-led growth. Total revenue growth in Q3
was 9% and organic revenue growth was 7%, both at constant exchange
rates. At actual exchange rates total growth was 7%. Overall the
performance was in line with our expectations and our guidance for
the full year is unchanged."
% change in revenue from ongoing activities year-on-year for the
three months ended 31 December 2019
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange rates(1) exchange rates exchange rates
-------------------- ------------------- ---------------- ----------------
North America 11 11 10
Latin America 10 19 18
UK and Ireland (3) (3) (3)
EMEA/Asia Pacific (4) (1) (13)
------------------- ---------------- ----------------
Experian 7 9 7
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months
ended 31 December 2019
Organic revenue Data Decisioning B2B(2) Consumer Experian
growth(1) Services
North America 12 8 11 7 10
Latin America 17 25 18 n/a 18
UK and Ireland 1 (12) (4) 1 (3)
EMEA/Asia Pacific 10 (29) (13) n/a (13)
----- ------------ ---------- ---------
Experian 12 (3) 7 6 7
------------------- ----- ------------ ------- ---------- ---------
1 Ongoing activities only, at constant exchange rates.
2 B2B = Business-to-Business segment consists of Data and
Decisioning business sub-divisions.
North America
We delivered strong growth in North America, where organic
revenue increased by 10%, notwithstanding the effect of one-off
third-party breach support revenue in the prior year. Total revenue
growth was 11%, reflecting acquisition contributions from AllClear
ID, MyHealthDirect and AutoID.
B2B performed well with organic growth of 11%. In Data, there
was growth across all core areas of activity, reflecting strength
in credit data volumes, mortgage and contributions from new
products. There was further progress in the roll-out of Ascend, as
we launched the new Ascend Data Services module, and we continue to
secure significant synergies from non-traditional credit data
assets (Clarity Services). Decisioning also performed well,
reflecting strength in fraud and identity management volumes, and
there was further strong progress in health.
Consumer Services performed well, with organic revenue up 7%,
even as we lapped one-off data breach support revenue in the prior
year comparable. Experian Boost has continued to perform very well,
and we have further expanded our free membership base. We now have
c. 27m US consumers on our free membership platform, and 2.4
million US consumers have connected their accounts to Experian
Boost. This has led to growth across our direct-to-consumer
ecosystem, including triple-digit growth in CreditMatch, our credit
comparison offer.
Latin America
Latin America had a particularly strong quarter, with organic
revenue growth of 18% at constant exchange rates, including a
stand-out performance in Brazil. Total revenue growth at constant
exchange rate was 19%, reflecting the first-time contribution from
the acquisition of Sentinel Peru. Organic growth in Brazil
reflected excellent performances across the business, including
growth in consumer information, business information and
Decisioning. We also saw a strong contribution from our consumer
activities, following a highly successful credit fair for Limpa
Nome, our debt resolution service, and as we secure further
traction for online credit comparison services through our eCred
offer. We now have 42 million free consumer memberships in Brazil.
There was also further progress in Spanish Latin America, with
another good performance in Colombia.
We remain on track for the introduction of positive data in
Brazil and expect commercial offers including positive data to be
available from the end of this month.
UK and Ireland
In the UK and Ireland, both total and organic revenue declined
(3)% at constant exchange rates.
Organic revenue for Data grew by 1%, as growth in consumer and
business information offset weakness in targeting and automotive.
We continue to make encouraging progress in digital services,
including strength in eligibility services, and we see good
prospects for our newer propositions, including trended data, as
well as for affordability services through our open-data platforms.
Decisioning was weak with an organic revenue decline of (12)% as we
continue to experience longer sales cycles and deferral of
decision-making by clients for large software implementations and
data quality services. Combined, this led to a (4)% decline in
organic revenue for B2B overall.
Consumer Services delivered organic revenue growth of 1%. Free
memberships reached 7 million, contributing to very strong growth
in CreditMatcher, our comparison service, which offset ongoing
decline in legacy credit monitoring subscription revenue.
EMEA/Asia Pacific
At constant exchange rates, total revenue across EMEA/Asia
Pacific declined by (1)%, while organic revenue declined by (13)%.
The difference related to the contribution from the acquisition of
Compuscan and other smaller acquisitions. Data performed strongly,
with organic revenue growth of 10%, driven by strength in India,
Southeast Asia and the Nordics. This was offset by a decline in
Decisioning, with organic revenue down (29)% as we lapped strong
prior comparables and due to some phasing of contract wins between
quarters. Across EMEA/Asia Pacific, we've seen growing pipelines
for affordability, decisioning software and marketplace offers and
we expect a return to growth in Q4 FY20.
Future events
Experian will release results for the year ending 31 March 2020
on Wednesday 20 May 2020.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4215
Gerry Tschopp Media queries +1 949 677 3377
Finsbury
Rollo Head +44 (0)20 7251 3801
Jenny Davey
This announcement is available on the Experian website at
www.experianplc.com.
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 17,200 people operating across 44 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 or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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