17th May 2018 09:30
LONDON (Alliance News) - Experian PLC Said Thursday that, due to a change in accounting practices, its annual profit was lower in its recent financial year.
The credit agency said that for the year to March 31, pretax profit fell 7% to USD994 million from USD1.07 billion in 2017 as the company has implemented IFRS 15.
IFRS 15 applies to annual reporting after January 2018 and governs the treatment of revenue from contracts with customers. IFRS 15 means that revenue can only be reported once performance obligations are met and the customer takes control. It affects less than 15% of Experian's group revenue.
Experian's revenue was up 7.4% to USD4.66 billion this year from USD4.34 billion last year.
The company's full year dividend was increased 8% to 44.75 US cents per share.
"Growth was particularly strong across business to business and we have made significant progress in consumer services, which returned to growth in North America in the fourth quarter," said Experian Chief Executive Officer Brian Cassin.
"We expect another year of strong performance, with earnings before income tax growth at or above revenue growth and further strong progress in benchmark earnings per share," he added.
The company said that its investment in innovation was providing it with growth opportunities and that it is increasing its product offering.
Shares in Experian were up 3.0% at 1,759.50 pence per share on Thursday morning, the second biggest gainer in the FTSE 100.
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