news release
Trading update, First quarter
16 July 2019 ā Experian, the global information services company, today issues an update on trading for the three months ended 30 June 2019.
Commenting on the performance, Brian Cassin, Chief Executive Officer, said:
"We have started the year well and in line with our expectations. Q1 total revenue growth was 7% at constant exchange rates and organic revenue growth was 6%. At actual exchange rates total growth was 4%. We are excited about our prospects and for the year ahead our guidance is unchanged."
% change in revenue from ongoing activities year-on-year for the three months ended 30 June 2019
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 |
9 |
9 |
8 |
Latin America |
(1) |
9 |
9 |
UK and Ireland |
(6) |
- |
- |
EMEA/Asia Pacific |
(1) |
6 |
(1) |
Experian |
4 |
7 |
6 |
1 Experian reports in US dollars
% change in organic revenue year-on-year for the three months ended 30 June 2019
Organic revenue growth1 |
Data |
Decisioning |
B2B2 |
Consumer Services |
Experian |
|
|
|
|
|
|
North America |
8 |
7 |
8 |
9 |
8 |
Latin America |
9 |
10 |
9 |
n/a |
9 |
UK and Ireland |
9 |
(13) |
(1) |
1 |
- |
EMEA/Asia Pacific |
6 |
(8) |
(1) |
n/a |
(1) |
Experian |
8 |
- |
6 |
8 |
6 |
1 Ongoing activities only, at constant exchange rates
2 B2B = Business-to-Business segment consisting of Data and Decisioning business sub-divisions
North America
We delivered strong growth in North America, where organic revenue increased by 8%. Total revenue growth was 9%, reflecting the contribution from the recent acquisition of AllClear ID.
B2B performed well with organic growth of 8%, reflecting strength in credit volumes, mortgage and contributions from new products. There was strength across business credit, automotive, health and decision analytics. Ascend continues to perform strongly, with many of our largest clients now using the analytical sandbox module. We have signed new agreements for new modules of Ascend and expect to introduce additional modules over the course of this year.
Consumer Services performed strongly, with organic revenue up 9%. Our membership base continues to expand and we have had an extremely encouraging reception for Experian Boost. We now have c. 21m US consumers on our free membership platform, and as at 10 July, 1.2 million US consumers had connected their accounts to Experian Boost, the new free service which enables consumers to contribute data to their credit reports and potentially boost their credit scores. This has accelerated revenue growth in CreditMatch, our credit comparison offer, and, when combined with strong growth from identity and partner solutions has led to a good performance overall.
Latin America
We had a strong start to the year in Latin America, where both total and organic revenue growth rose by 9% at constant currency. Brazil performed strongly, with encouraging performances across the business, including growth across consumer information, business information, and a strong contribution from consumer, led by growth in our Limpa Nome debt resolution services. Free consumer memberships increased to 34 million by the quarter end. There was also further growth in Spanish Latin America, especially in Colombia.
UK and Ireland
In the UK and Ireland, total and organic revenue growth was flat at constant currency.
Across B2B, we delivered a strong organic revenue performance in Data which grew 9%, reflecting favourable credit volume trends and particular strength in pre-qualification services. We have also benefited from a growing contribution from our new product innovations, including affordability services through our open-data platforms and new client signings for Ascend. We also see good prospects for trended data, where we have established a good pipeline. As expected there was a decline in Decisioning organic revenue of (13%) as we lapped a strong prior-year quarter when we secured a large number of contract wins. Combined, this led to a (1%) decline in organic revenue for B2B overall.
Consumer Services continued its improving trend and returned to growth in the quarter, with organic revenue up 1%. Free memberships are growing strongly, reaching 6.1 million by the end of the quarter, and this gave rise to very strong growth in CreditMatcher, our comparison service. We also saw some softening of the decline in credit monitoring revenue as some free members upgraded to paid-for premium services.
EMEA/Asia Pacific
At constant currency, total revenue growth across EMEA/Asia Pacific was 6%, while organic revenue declined by (1%). The difference related to the first-time contribution from the Compuscan acquisition. Data performed well, with organic revenue growth of 6%, with strength in India, the Nordics and Italy. As expected, Decisioning organic revenue declined by (8%) as we lapped strong prior comparables. Across EMEA/Asia Pacific, we see good pipelines for Ascend, affordability, Decisioning and marketplace offers, and in July we were pleased to complete a minority investment in Grab, the leading everyday super-app in Southeast Asia.
Foreign exchange modelling considerations
In May, we guided there was an expected 1% impact of foreign exchange to Benchmark EBIT growth rates for the year ending 31 March 2020. Updating for the most recent movements in foreign exchange, this guidance is unchanged.
Future events
Experian will release results for the first half ending 30 September 2019 on Tuesday 12 November 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 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.
