15th Jan 2016 08:58
(Correcting group constant-currency revenue growth to 6% and Latin America constant-currency revenue growth 7%.)
LONDON (Alliance News) - Experian PLC on Friday reiterated its guidance for the full year, although the strength of the dollar continues to exert a considerable drag on the contribution of its operations in Latin America, as the group posted total and organic revenue growth of 6% in the third quarter of its financial year at constant exchange rates.
The information services company, known for providing credit checks on consumers and businesses, said organic revenue growth was balanced across the regions in which it does business. However, total revenue was down 3% at actual exchange rates in the quarter ended December 31.
"Looking ahead, our guidance for the full year is unchanged. While foreign exchange will be a headwind, at constant currency we expect organic revenue growth in the mid-single digit range, to deliver stable margins and to see further progress in benchmark earnings per share," Chief Executive Brian Cassin said in a statement.
Experian's foreign currency woes were most stark at its Latin American operations, where total and organic third-quarter revenue growth of 7% measured up against a 29% drop at actual exchange rates. In fact, North America was the only region to show growth at actual exchange rates, achieving a 6% increase. In the UK & Ireland, constant currency growth of 4% measured up against a 1% drop at actual exchange rates, while the Europe, Middle East, Africa & Asia Pacific region's constant currency growth of 7% translated into a 6% drop at actual exchange rates.
"If current rates prevail, on earnings before interest and tax we now expect a foreign exchange headwind of approximately 11% for the year ending March 31, 2016 and a further headwind of approximately 3% for the year ending March 31, 2017," Experian said.
At the half year, Experian had expected a foreign exchange headwind on EBIT of between 10% and 11% for the current financial year, followed by a drag of between 2% and 3% for the March 31, 2016 financial year.
By Samuel Agini; [email protected]; @samuelagini
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