Trading update, first quarter
13 July 2018 ā Experian, the global information services company, today issues an update on trading for the three months ended 30 June 2018.
Commenting on the performance, Brian Cassin, Chief Executive Officer, said:
"We have started the year well, in line with our expectations, with Q1 total revenue growth of 10% at constant exchange rates, up 9% at actual rates and organic revenue growth of 8%. Our performance continues to reflect a range of new product introductions across a number of areas, and for the year ahead, at constant currency, our guidance is unchanged."
% change in revenue from ongoing activities year-on-year for the three months ended 30 June 2018
Ongoing activities only |
Total revenue growth % |
Total revenue growth % |
Organic revenue growth % |
|
At actual exchange rates1 |
At constant exchange rates |
At constant exchange rates |
North America |
13 |
13 |
11 |
Latin America |
(7) |
4 |
4 |
UK and Ireland |
11 |
4 |
3 |
EMEA/Asia Pacific |
15 |
11 |
11 |
Experian |
9 |
10 |
8 |
1 Experian reports in US dollars
% change in organic revenue year-on-year for the three months ended 30 June 2018
Organic revenue growth1 |
Data |
Decisioning |
B2B2 |
Consumer Services |
Experian |
|
|
|
|
|
|
North America |
13 |
9 |
12 |
8 |
11 |
Latin America |
- |
35 |
4 |
n/a |
4 |
UK and Ireland |
- |
17 |
7 |
(8) |
3 |
EMEA/Asia Pacific |
2 |
20 |
11 |
n/a |
11 |
Experian |
7 |
15 |
9 |
5 |
8 |
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, organic revenue growth was up 11%, with B2B up 12% and Consumer Services up 8%. Total revenue growth was 13%, largely reflecting the contribution from the Clarity Services acquisition.
In B2B, growth reflects successful new product introductions, as we add new sources of data, strength in core credit volumes and major One Experian client wins. Experian Ascend secured additional new client wins in the quarter for the analytical sandbox and we continue to evolve and develop the platform to address new customer segments. We have also made further strong progress across decisioning and fraud prevention software, and also in health where we continue to secure new clients, with strong new bookings.
In Consumer Services, we have seen good take-up rates for our new consumer offers and have secured new client wins in partner solutions. In identity protection, we have now enrolled approximately 240,000 paying members, and we introduced additional new features, such as Triple Scan and Child Scan, to engage and expand our membership base. Credit comparison services also made a positive contribution in the quarter as we introduce new offers and enhance the user experience.
Latin America
In Latin America, total and organic revenue growth was 4%, and client demand for analytics, decisioning and fraud software capabilities across the region remains good. Growth in Brazil reflected somewhat weaker macro-economic activity in the quarter, including the effect of recent national industrial action. There was also a reduced contribution from counter-cyclical revenues.
UK and Ireland
In the UK and Ireland, organic revenue growth was 3%, with B2B up 7% and Consumer Services down (8)%. Total revenue growth was 4% reflecting the acquisition of Runpath.
In B2B, we continue to extend our market position, driven by unique Experian capabilities including pre-qualification and new digital services, decisioning software such as PowerCurve and analytics, and we secured multiple new client engagements in the quarter. Consumer Services continues to make good progress, as the rate of decline moderated further with strong growth in CreditMatcher partially offsetting lower credit monitoring revenues.
EMEA/Asia Pacific
We continue to make good progress across EMEA/Asia Pacific, where total and organic revenue growth was 11%. This reflects good take-up rates for global Experian products, particularly decisioning software such as PowerCurve, helping us to secure larger engagements with existing clients and to win new logos.
Foreign exchange modelling considerations
In May, we guided there was an expected 1% impact of foreign exchange to Benchmark EBIT growth rates, updating for latest foreign exchange movements this would now be 4%.
Future events
Experian will release results for the first half ending 30 September 2018 on Tuesday 13 November 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.
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.
