Experian has reported first quarter organic revenue growth of 7%, in line with expectations. North America led the way with consumer products delivering double digit growth. In business-to-business lines it was mortgage, identity and fraud that were key growth drivers. The credit environment remains stable in the US, but the UK is still a little weak.
Latin America saw slightly soft business-to-business growth of 1%, with deal timing and flooding impacting results. Management expects stronger growth to return over the coming quarters as conditions normalise.
Full-year guidance continues to look for organic revenue growth of 6-8%, with margins improving 0.3-0.5 percentage points.
The shares fell 2.0% in early trading.
Our view
HL view to follow.
Experian key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.