TIDM93RV
RNS Number : 2635C
Experian Finance Plc
18 January 2018
news release
Trading update, third quarter
18 January 2017 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 31 December 2017.
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"We made good progress during our third quarter, with organic
revenue growth of 5% and total growth of 8% at actual rates.
Performance across our B2B* activities strengthened, and Consumer
Services is making good progress in identity protection and credit
comparison services. We are confident of further improvement as we
move into our traditionally stronger final quarter.
"For the year as a whole we continue to expect organic revenue
growth of mid-single digits, with stable margins and further
progress in Benchmark earnings per share."
% change in revenue from ongoing activities year-on-year for the
three months ended 31 December 2017
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange exchange exchange
rates(1) rates rates
-------------------- -------------- -------------- ----------------
North America 7 7 5
Latin America 8 7 7
UK and Ireland 7 0 0
EMEA/Asia Pacific 17 12 12
-------------- -------------- ----------------
Experian 8 6 5
-------------------- -------------- -------------- ----------------
1 Experian reports in US dollars
* B2B = business-to-business activities consists of Credit
Services, Decision Analytics and Marketing Services business
lines
In the three months ended 31 December 2017, total revenue growth
at actual rates was 8%, total revenue growth was 6% at constant
exchange rates and organic revenue growth was 5%.
For the Group, organic revenue growth was 8% across B2B and (4%)
in Consumer Services.
% change in organic revenue year-on-year for the three months
ended 31 December 2017
Organic revenue Credit Decision Marketing B2B Consumer Experian
growth(1) Services Analytics Services Services
North America 8 17 0 8 (1) 5
Latin America 7 9 0 7 n/a 7
UK and Ireland 5 4 5 5 (15) 0
EMEA/Asia
Pacific 10 15 12 12 n/a 12
---------- ----------- ---------- ---- ---------- ---------
Experian 8 11 3 8 (4) 5
----------------- ---------- ----------- ---------- ---- ---------- ---------
1 Ongoing activities only, at constant exchange rates
North America
In North America, we delivered organic revenue growth of 5%,
with total revenue growth of 7%, the difference largely reflecting
the contribution from the Clarity acquisition.
Organic revenue growth across B2B was strong, up 8%, aided by
new product introductions, growth in core credit volumes, excellent
progress in software and fraud prevention and continued strength in
health. Experian Ascend, our next generation analytical sandbox,
has been well-received, and we signed several major financial
institutions to the service during the quarter, with a robust
pipeline.
We made good progress in Consumer Services as the rate of
decline moderated further. IdentityWorks continues to grow strongly
and we now have 150,000 paying members, with intensifying marketing
efforts and new campaigns launched recently. We have also extended
the identity proposition, introducing a Family Plan offer during
the quarter as well as new pricing tiers. LendingWorks is also
making good progress as we add card and loan offers.
Latin America
Latin America delivered another strong quarter of growth, with
total and organic revenue up 7% at constant exchange rates. Brazil
performed strongly, driven by higher core volumes, reflecting
improved market conditions, and recent client wins. We also
benefited from continued growth in countercyclical products,
progress in the small and medium enterprise client segment and
growth in software and analytics, with further PowerCurve
installations. During the quarter, we also signed another new long
term agreement with a major Brazilian bank to deliver a broad range
of services. In Spanish Latin America we secured several new client
wins which will help underpin future growth in this part of the
region.
UK and Ireland
Total and organic revenue at constant exchange rates in the UK
and Ireland was flat, as strength in B2B was offset by Consumer
Services. B2B growth was led by consumer information services,
credit pre-qualification services, fraud prevention services and
strength in digital marketing volumes. There were also sizeable new
business wins, including for PowerCurve Collections. In Consumer
Services, the rate of decline has continued to moderate, and while
subscription revenues for credit monitoring services were lower, we
delivered very strong growth in CreditMatcher, where we introduce
consumers to loan offers. This forms part of our broader strategy
to develop new and engaging offers for consumers, and we continue
to build a substantial base of free members, now totalling
3.3m.
EMEA/Asia Pacific
We continue to make strong progress across EMEA/Asia Pacific,
where total and organic revenue growth was 12% at constant exchange
rates. A strong performance in EMEA was aided by our One Experian
approach, delivering integrated data, analytical and software
services, while in Asia Pacific growth was primarily led by strong
client demand for software and fraud prevention services.
Tax
We note the enactment of the US Tax Cuts and Jobs Act on 22
December 2017. We continue to review the full implications of this
new legislation and, at this stage, we expect the effect of the
reduction in the headline tax rate will be broadly offset by the
reduction in availability of tax deductions for interest and other
Group costs. Our expectation is that Group Benchmark tax rate for
the year ending 31 March 2018 will be unchanged from previous
guidance, namely in the 26-27% range, and will continue in a
broadly similar range for the year ending 31 March 2019.
Future events
Experian will release results for the year ending 31 March 2018
on Thursday 17 May 2018.
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
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 16,000 people operating across 37 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 announcement has been issued through the Companies
Announcement Service of
The Irish Stock Exchange
This information is provided by RNS
The company news service from the London Stock Exchange
END
ISEEAEFPFLKPEFF
(END) Dow Jones Newswires
January 18, 2018 05:47 ET (10:47 GMT)
Experian Fin 20 (LSE:93RV)
Historical Stock Chart
From Oct 2024 to Nov 2024
Experian Fin 20 (LSE:93RV)
Historical Stock Chart
From Nov 2023 to Nov 2024
