Experian plc (EXPN.L) reported January 14 2022 that its third-quarter performance was at the upper end of expectations. Total revenue in the quarter grew 14 percent on a reported basis and 15 percent at constant exchange rates. Organic revenue growth was 11 percent.
Looking ahead, Brian Cassin, Chief Executive Officer, said, ‘We now expect organic revenue growth for the full year to be in the range of 12-13 percent, with total revenue growth now expected in the range of 16-17 percent, at constant exchange rates. We continue to expect strong EBIT margin accretion, also at constant exchange rates.’
The company previously expected organic revenue growth in the range of 11-13 percent, and total revenue growth of 15-17 percent.
In its update on trading for the three months ended December 31, the company reported that North America, which generates 67 percent of Group revenue, delivered total revenue growth of 16 percent and organic revenue growth of 13 percent.
Latin American revenues grew 16 percent on a reported basis and 11 percent organically. In UK and Ireland, reported revenues were up 10 percent, and organic revenues were up 8 percent.
EMEA/Asia Pacific revenues were 4 percent higher on a reported basis, while organic revenue growth across EMEA/Asia Pacific was flat.
Experian clients demand more services related to buy-now-pay-later
Experian (EXPN.L) sees growing demand for its services in the booming buy-now-pay-later (BNPL) sector as it adds more clients to the unit, the world’s largest credit data firm said on Friday after a strong third quarter.
BNPL is a segment that is becoming more mainstream and Experian’s clients are demanding the company’s services to know whether an applicant is real or fraudulent, Chief Communication Officer Nadia Ridout-Jamieson told Reuters.
“The interesting thing about buy now pay later, is that more people want to know what it means for the total indebtedness of the consumer, or how is the consumer handling debts,” Jamieson said. The company has added a lot of clients in the past year in its new BNPL segment.
Buy-now-pay-later services have exploded in popularity. PayPal Inc recorded five times higher volumes on its BNPL platform on Black Friday 2021 compared to 2020.
Experian reported a 14% jump in its third-quarter revenue on Friday, fuelled by robust demand for its services to consumers and businesses in North America.
Demand for credit reports and scores has been rising in Experian’s main markets following the lifting of coronavirus restrictions, flexible lending criteria and low interest rates that have helped revive lending and marketing activities by clients.
The Ireland-based company benefited from U.S. consumers showing strong demand for credit in 2021, while applications for credit overall rebounded to 2019 levels, according to a survey released by the New York Federal Reserve November.
Experian said it expects its annual revenue to grow between 16% and 17%, above an earlier forecast of a 15% to 17% jump. The London-listed firm, however, narrowed its organic revenue forecast for the year, dented by weakness in its Europe, Middle East and Africa markets.