TIDM93RV
RNS Number : 1928O
Experian Finance Plc
25 January 2019
news release
Trading update, third quarter
17 January 2019 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 31 December 2018.
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"We delivered strong growth in Q3 with total and organic revenue
growth of 9% at constant exchange rates and total revenue growth at
actual exchange rates of 5%. Our performance reflects the success
of our strategy to deliver innovative products at scale across our
geographies and to build direct relationships with consumers, and
our full-year guidance is unchanged."
% change in revenue from ongoing activities year-on-year for the
three months ended 31 December 2018
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 12 12 12
Latin America (11) 4 4
UK and Ireland (1) 3 3
EMEA/Asia Pacific 4 9 9
------------------- ---------------- ----------------
Experian 5 9 9
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars
% change in organic revenue year-on-year for the three months
ended 31 December 2018
Organic revenue Data Decisioning B2B(2) Consumer Experian
growth(1) Services
North America 11 12 12 12 12
Latin America 2 16 4 n/a 4
UK and Ireland - 9 4 (1) 3
EMEA/Asia Pacific (3) 19 9 n/a 9
----- ------------ ---------- ---------
Experian 6 13 8 10 9
------------------- ----- ------------ ------- ---------- ---------
1 Ongoing activities only, at constant exchange rates
2 B2B = Business-to-Business segment consists of Data and
Decisioning business sub-divisions
North America
In North America, total and organic revenue growth was 12%.
B2B delivered strong growth of 12%, reflecting strength in core
credit volumes, trended data (which annualised at the beginning of
Q4 FY19) and new product introductions. There was also strength
across business credit, health and automotive. Clarity Services,
which provides non-traditional credit data, performed well as its
core market expands and as we introduce Clarity data to existing
clients. We have successfully delivered Ascend, our flagship
analytics-on-demand platform, across major strategic clients and
continue to build a very strong pipeline. Decisioning also
performed very well as we continue to secure new wins for software
product bundles.
Consumer Services performed strongly, up 12% as market adoption
of our new offers increases and underlying trends continue to
improve. We have also secured new client wins in partner solutions,
which added one-off data breach support revenue in the quarter. We
saw further expansion in our identity protection offer where we
have now enrolled approximately 320k paying members. CreditMatch,
where we match consumers with credit offers most relevant to them,
is gaining scale supported by new advertising campaigns. Our free
membership base has now reached over 17m consumers. In December we
were delighted to introduce Experian Boost, a new service which
will help consumers to contribute data to their credit reports and
potentially boost their credit scores by permitting access to
telecom and utility payment information from their deposit
accounts.
Latin America
In Latin America, total and organic revenue growth was 4%.
We delivered strong growth across Spanish Latin America as we
strengthen our market position and as we deploy our One Experian
approach. In Brazil we delivered low-single digit organic revenue
growth. We saw growth across our larger clients including in
Decisioning as we benefit from large multi-year contracts with
major Brazilian institutions, helping to offset lower revenue from
countercyclical products. There was also some modest improvement in
the small and medium enterprise vertical and the contribution from
services to consumers grew significantly in the quarter from a
small base.
UK and Ireland
In the UK and Ireland, total and organic revenue growth was
3%.
Organic revenue growth across B2B was 4%, driven by new business
wins, pre-qualification and data aggregation services (Runpath).
There was also good growth in decisioning software and fraud
prevention, including new wins for CrossCore. We are encouraged by
progress across our innovation portfolio which includes a growing
pipeline for Ascend, the launch of our Open Data platform (Verdus)
and as sales of our affordability services gain traction.
Consumer Services made further progress as the rate of decline
moderated to (1%), with strong growth in credit marketplace
referral fees which mostly offset lower credit monitoring revenues.
The free membership base increased to 5m consumers.
EMEA/Asia Pacific
We continue to make good progress across EMEA/Asia Pacific,
where total and organic revenue growth was 9%. This reflects
further success for core global products specifically PowerCurve
which saw several new client wins. We saw a growing contribution
from newer activities such as digital marketplaces in Asia Pacific,
and we have added a new client, signing an agreement and equity
investment with Jirnexu, Malaysia's leading comparison website for
financial products such as credit cards, loans and insurance
products.
Foreign exchange modelling considerations
In November, we guided there was an expected 5% impact of
foreign exchange to Benchmark EBIT growth rates for the year ending
31 March 2019. Updating for the most recent movements in foreign
exchange this guidance is unchanged.
Future events
Experian will release results for the year ending 31 March 2019
on Wednesday 15 May 2019.
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.
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 16,500 people operating across 39 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 Euronext Dublin.
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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