16th Jul 2020 09:52
(Alliance News) - Experian PLC on Thursday said growth in North America and Brazil helped offset weaker conditions elsewhere in the first-quarter, which led to just 2% drop in organic revenue.
The credit checking company also said it is unable to provide financial guidance for the current financial year to March 31, 2021, due to the coronavirus uncertainty. However, the company forecast organic revenue for the second-quarter to be in the range of flat to a fall of 5%.
Chief Executive Officer Brian Cassin said: "We delivered growth in North America and Brazil during Q1, which helped offset weaker conditions elsewhere, and as a result total revenue was down just 1% at constant exchange rates, with organic revenue down 2%. At actual exchange rates total revenue declined by 5% due to the weakness of the Brazilian real relative to the US dollar.
"There continues to be a range of outcomes and a level of uncertainty around the extent or re-imposition of lockdowns, government action to support economies and the shape of economic recovery. We therefore do not intend to provide guidance for the year ending 31 March 2021."
For the three months to June 30, Experian recorded a 5% year-on-year drop in total revenue.
The North America division, which contributes 63% of annual revenue, performed exceptionally well in the quarter, Experian said, with growth in business-to-business and a very strong performance in consumer services divisions. Both total and organic revenue increased by 4%, with B2B up 1% and consumer services up 10%.
The UK & Ireland unit - Experian's second biggest business contributing 15% of group revenue - saw a 18% fall in total quarterly revenue growth and 15% drop in organic revenue.
B2B organic revenue declined 15%, with contraction in credit reference volumes due to clients tightening credit policies and a significant reduction in lending levels. Consumer services organic revenue declined 18% due to reduced consumer demand.
Shares in the Dublin-based company were up 0.1% at 2,847.00 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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