Experian Q3 FY24 trading update

Experian plc

16 January 2024

 

                                                     

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                         [phone]

Nick Jones                                Media queries                                      

Teneo

Graeme Wilson, Louise Male and Jessica Reid                           [phone]

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.

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.

 

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