16th Jan 2024 10:27
(Alliance News) - Experian PLC on Tuesday said its third-quarter revenue grew, brushing aside worries of a slowdown amid lending market tightness.
Shares in the company traded 2.7% higher at 3,211.00 pence each in London on Tuesday morning.
The credit checking company said total revenue was up 9% in the three months that ended December 31, or 7% at constant exchange rates, with organic growth up 6%.
In North America alone, which accounts for 67% of the group's total revenue, Experian reported a 6% increase at actual currency rates.
At actual rates, revenue in the UK & Ireland unit rose 9%, and in the Europe, Middle East, Africa & Asia Pacific division, it rose 8%.
These figures were at the "upper end" of Experian's expectations, said Chief Executive Officer Brian Cassin.
Experian didn't provide actual revenue figures, only percentage changes.
Progress was especially prominent in Latin America for Experian. This is the Dublin-based company's second-largest market, comprising 15% of the company's revenue. Experian saw revenue growth of 25% in the region over the three months, or 17% at constant rates.
Looking ahead, Experian said it expects organic revenue growth of between 5% and 6% for the full year, alongside "modest margin accretion", both at constant rates.
The promising update follows Experian also reporting decent trading back in November. It calmed some investor nerves at the time, as its half-year outturn was nowhere as poor as what was seen in its peer group.
For the six months that ended on September 30, the Dublin-based firm said pretax profit grew 48% to USD763 million in the six months to September 30 from USD517 million a year prior. Revenue grew 5.2% to USD3.42 billion from USD3.25 billion the year before, due to "good" organic revenue growth across all regions.
The likes of TransUnion and Equifax Inc, both listed in New York, post disappointing updates for their third quarters ended September 30. TransUnion reported a swing to a net loss, while Equifax reduced its revenue and profit outlook for the full year.
Hargreaves Lansdown analyst Matt Britzman commented: "Experian continues to showcase its qualities. Despite ongoing slowdowns in the lending markets, from both the US and the UK, growth in the third quarter was ahead of expectations. Lenders are still keeping their belts a little tighter than usual, as consumers and businesses battle through the current inflationary cycle. Mortgages in the US are a particular weak spot, there's simply very little incentive to move house with many Americans sitting on long-term products at low rates.
"But the range of products, across various markets, continues to hold Experian in good stead. Latin America remains a growth leader, underscoring Experian's adept navigation of evolving financial landscapes in the region. The free credit check service remains a powerful draw across geographies, attracting millions and serving as a gateway to a suite of premium offerings."
By Eric Cunha, Alliance News news editor
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