10th Nov 2015 07:44
LONDON (Alliance News) - Experian PLC on Tuesday said foreign exchange will continue to exert an unwelcome pressure on the business at the full year, although it expects to see organic revenue growth at constant currency.
The information services company said that as well as organic revenue growth in the mid-single digit range, it anticipates "stable" margins and further progress in its closely-watched benchmark earnings per share in its full 2016 financial year, all at constant current.
The guidance came as Experian reported that pretax profit fell to USD458.0 million in the six months to September 30 from USD534.0 million in the corresponding half the prior year. Benchmark earnings per share amounted to 42.0 US cents, up 5% at constant exchange rates and down 7% at actual exchange rates.
Revenue shrunk to USD2.24 billion in the half from USD2.39 billion previously, while operating expenses were down to USD1.75 billion from USD1.84 billion. At constant exchange rates, revenue from continuing operations was up 4% to USD2.22 billion.
The loss of value in the pound, the Brazilian real and the euro against the dollar, the information services company's reporting currency, reduced revenue by USD234.0 million compared to the first half of the prior year, it said.
Experian said it will pay a first interim dividend of 12.5 US cents, raised by 2% to "reflect the underlying strength" of the business, notwithstanding
"We've taken steps to focus the portfolio, the trend in organic revenue growth has improved and we are returning more capital to shareholders," Chief Executive Brian Cassin said in a statement.
"We have seen particular strength in key parts of the business, such as credit services and decision analytics, while in other areas our recovery actions are gaining traction. With this progress on our strategic priorities we are creating a strong platform for delivering sustainable growth," Cassin said.
By Samuel Agini; [email protected]; @samuelagini
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