news release
Trading update, third quarter
16 January 2024 ─ Experian plc, the global information services company, today issues an update on trading for the three months ended 31 December 2023.
Brian Cassin, Chief Executive Officer, commented:
"We delivered good growth in Q3, at the upper end of our expectations. Revenue was up 9% at actual exchange rates from ongoing activities and 7% at constant exchange rates, with organic revenue growth of 6%.
For FY24, we now expect full year organic revenue growth to be between 5-6%, with modest margin accretion, all at constant exchange rates and on an ongoing basis."
% change in revenue from ongoing activities year-on-year for the three months ended 31 December 2023
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 |
6 |
6 |
5 |
|
Latin America |
25 |
17 |
13 |
|
UK and Ireland |
9 |
3 |
3 |
|
EMEA and Asia Pacific |
8 |
8 |
7 |
|
Total global |
9 |
7 |
6 |
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months ended 31 December 2023
Organic revenue growth %2 |
Data |
Decisioning |
B2B3 |
Consumer Services |
Total |
|
|
|
|
|
|
|
|
North America |
3 |
4 |
3 |
9 |
5 |
|
Latin America |
9 |
12 |
10 |
26 |
13 |
|
UK and Ireland |
9 |
(6) |
3 |
0 |
3 |
|
EMEA and Asia Pacific |
3 |
17 |
7 |
n/a |
7 |
|
Total global |
5 |
5 |
5 |
10 |
6 |
2 Ongoing activities only, at constant exchange rates.
3 B2B = Business-to-Business segment which consists of Data and Decisioning business sub-divisions.
Business mix including % change in organic revenue year-on-year for the three months ended 31 December 2023
|
Segment
|
Business unit |
% of Group revenue4 |
Q3 organic revenue growth %5 |
|
North America |
67% |
5% |
|
|
Data |
CI / BI Bureaux |
23% |
2% |
|
- CI / BI Bureaux, excluding mortgage |
21% |
3% |
|
|
- Mortgage |
2% |
(6)% |
|
|
Automotive |
5% |
10% |
|
|
Targeting |
4% |
3% |
|
|
Decisioning |
Health |
8% |
7% |
|
DA / Other |
5% |
(1)% |
|
|
Consumer Services |
Consumer Services |
22% |
9% |
|
Latin America |
15% |
13% |
|
|
Data |
CI / BI Bureaux |
9% |
10% |
|
Other |
0% |
(11)% |
|
|
Decisioning |
DA / Other |
3% |
12% |
|
Consumer Services |
Consumer Services |
3% |
26% |
|
UK and Ireland |
12% |
3% |
|
|
Data |
CI / BI Bureaux |
5% |
9% |
|
Targeting / Auto |
1% |
11% |
|
|
Decisioning |
DA / Other |
3% |
(6)% |
|
Consumer Services |
Consumer Services |
3% |
0% |
|
EMEA and Asia Pacific |
6% |
7% |
|
|
Total global |
100% |
6% |
|
4 Percentage of Group revenue from ongoing activities calculated based on FY24 H1 revenue at actual exchange rates.
5 Ongoing activities only, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA = Decision Analytics.
North America - 67% of Group revenue4
North America delivered organic revenue growth of 5%. Total revenue growth was 6% including the contribution from an acquisition in health completed during the quarter.
B2B organic revenue growth was 3%.
Positive contributions from Clarity, Experian Ascend and Employer Services plus growth across larger clients offset continued volume weakness in smaller fintechs and mortgage. Automotive delivered strongly led by higher marketing activity by clients seeking to stimulate sales of new and used vehicle inventory. Health performed strongly with positive contributions from major product lines and from new products.
Consumer Services delivered organic revenue growth of 9%. We added to our member count to take our free membership base to 69m. Premium services performed well as did the insurance marketplace where new carrier on-boarding has boosted policy volumes. The credit marketplace continues to reflect constraints in credit supply. Partner Solutions performed very well, benefiting from one-time business wins for databreach services.
Latin America - 15% of Group revenue4
Latin America delivered organic revenue growth of 13%. At constant currency, total revenue growth was 17%, including contributions from acquisitions.
B2B organic revenue growth was 10%. In Brazil, we continue to grow our relationships with clients and build out new vertical opportunities. Growth was driven by adoption of positive data scores and analytics, our cloud-based decisioning tools and fraud and identity management capabilities. Our agribusiness vertical also performed strongly. Spanish Latin America benefited from expansion in scores, analytics and fraud and identity management.
Consumer Services delivered organic revenue growth of 26%. We have added to our free membership base, which reached the milestone of 100m in total for the region (Brazil 86m and Spanish Latin America 14m). In Brazil, we benefited from positive contributions from our Limpa Nome debt resolution service and expanded e-wallet payment integrations.
UK and Ireland - 12% of Group revenue4
The UK and Ireland delivered organic revenue of growth of 3%. Total constant currency growth at constant exchange rates was also 3%.
B2B organic revenue growth was 3%. We continue to perform strongly across consumer bureau activities, outperforming the credit issuance market where trends remain weak. This has been driven by sizeable new business wins and new product initiatives, with strong performances for Ascend, analytics and affordability products. Other Data activities also performed well. Decisioning performance reflected deal phasing and the transition from legacy on-premise software products to cloud-based solutions.
Organic revenue in Consumer Services was flat. This reflects continued stability in subscription revenue trends and a positive contribution from databreach services. Marketplace revenues continue to reflect soft market conditions. Free memberships were 13m.
EMEA and Asia Pacific - 6% of Group revenue4
In EMEA and Asia Pacific, organic revenue growth was 7%. Total constant currency revenue growth was 8%. There was strong progress across a number of key markets, including Australia, India and Italy.
Future events
Experian will release results for the full year ending 31 March 2024 on Wednesday, 15 May 2024.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4220
Nick Jones Media queries
Teneo
Graeme Wilson, Louise Male and Jessica Reid +44 (0)20 7353 4200
This announcement is available on the Experian website at 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 22,400 people operating across 32 countries and every day we're investing in new technologies, talented people, and innovation to help all our clients maximise every opportunity. With corporate headquarters in Dublin, Ireland, we are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index.
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