Experian’s consolidated revenues (cont. activities) were US$ 1,993 mil up 9% (AFX) or 8% (BFX) for the first six months (April to September). Growth in Latin America is driven by Serasa (22% BFX); EMEA/Asia Pacific (13% BFX), US (6% BFX) and UK/Ireland (0%). Growth in credit services in Latin America were up (22%); US was flat; UK/Ireland down (-4% BFX); EMAE/Asia Pacific (-2% BFX). Growth also resulted from a strong rebound in marketing services with overall growth of 15% (BFX). US up 12%; Latin America up 36%; UK and Ireland up 3% and EMEA/Asia Pacific 42%.
Don Robert, Chief Executive Officer, commented: “We performed strongly in the first half, delivering our best organic revenue growth outcome in four years. Trends have improved modestly, with generally more favorable conditions across the majority of our markets. Our strategic priority is to maximize the opportunities we have identified globally. We are executing successfully against our growth program, as is increasingly visible in our performance. For the year as a whole, we expect to deliver similar rates of organic revenue growth to the first half, and we are targeting modest improvement in our EBIT margin.” Mr. Roberts further commented: “Our global scale sets us apart competitively and provides growth opportunities unique to Experian. We are rolling out existing Experian products into both existing and new geographies. For example, we have launched ten global marketing products into eight countries over the past 18 months, including France, Germany, South Africa, Hong Kong and Singapore. As a result, Marketing Services now accounts for over one third of EMEA/Asia Pacific revenue.”
During the past six months the stock prices of major players has climbed steadily.
Experian’s stock price outpaced that of competition, but its stock started to recede disproportionally in mid-November. The stock rallied 44p following its earnings release, but the stock has given up almost half of the gain in the meantime.
Equifax’s stock also rallied after the announcement of Q3 results, while FICO’s stock declined sharply following its earnings release in early November.