Experian plc, the global information services company, has issued an update on trading for the first three months ended 30 June 2023.

Brian Cassin, Chief Executive Officer, commented: “We delivered good growth in Q1, in line with our expectations. Total revenue growth at actual exchange rates was 5% and also at constant exchange rates. Organic revenue growth was 5%.

Our growth expectations for the full year are unchanged reflecting the strength and diversity of our business. We continue to expect organic revenue growth of between 4-6% and modest margin accretion, all at constant exchange rates and on an ongoing basis.”

Segment Results: 

% change in revenue from ongoing activities year-on-year for the three months ended 30 June 2023

North America – 67% of Group revenue4

North America delivered organic and total revenue growth of 4%.

B2B organic revenue growth was 4%. Favourable contributions from Clarity, buy-now-pay-later clients, Experian Ascend and business credit offset weaker volume trends linked to traditional consumer credit origination activity, as well as in mortgage. Employer and Verification Services grew strongly, and we continue to add to our record count and build our position through new client acquisition. Targeting performed strongly, with growth across digital channels, driven by usage expansion arising from new client integrations. Automotive also delivered solidly, helped by improvement in industry inventory supply, and we continue to make good progress across health.

Consumer Services delivered organic revenue growth of 3%. We added to our member count to take our free membership base to 64m. Premium services performed well following additions to our paid membership base. While credit marketplace volumes were impacted by tighter lending standards, we onboarded new partners in the quarter and are successfully driving adoption of Experian Activate. We have also made good progress in insurance, which continues to trend positively.

Latin America – 15% of Group revenue4

Latin America delivered organic revenue growth of 13%. At constant currency, total revenue growth was 14%, including contributions from small acquisitions.

B2B organic revenue growth was 10%. In Brazil, we are expanding our client footprint and entering new vertical opportunities. Momentum was again strong, reflecting wider adoption of positive data propositions, cloud-based decisioning tools and analytics. Our footprint in agribusiness continues to grow, as we added new customers to support lending in the agriculture sector.

Consumer Services delivered organic revenue growth of 26%. This included further expansion of our free membership base, which rose to 95m in total for the region (Brazil 82m and Spanish Latin America 13m). In Brazil, we further expanded our Limpa Nome debt resolution service by adding new partners. We also benefited from an increased contribution from payment solutions and premium services. 

UK and Ireland – 12% of Group revenue4

The UK and Ireland delivered organic and total constant currency revenue growth of 1%.

B2B organic revenue growth was 1%. Despite weaker lending volumes, all major B2B business units delivered growth, sustained by further new business wins and new product initiatives. Lenders are generally cautious and have repriced and reduced credit supply in some categories. Client appetite for solutions which support affordability assessment and portfolio analysis has trended positively, helping to mitigate this trend.

Organic revenue in Consumer Services declined (2%), reflecting the impact of supply contraction in our credit marketplace as well as lower premium subscription revenue. Free memberships increased to 13m.

EMEA/Asia Pacific – 6% of Group revenue4

In EMEA/Asia Pacific, organic revenue growth was 8%, as was total revenue growth at constant exchange rates. We are making good progress on our plan to enhance growth performance within scaled markets. The majority of our strategic markets contributed positively, with notably strong progression across Italy, Australia and India.

Future events

Experian will release its half-year results on Wednesday, 15 November 2023, and its third-quarter trading update on Tuesday, 16 January 2024.

Source:  Experian Earnings Release