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Experian sees spike in enrolments after data breach at Equifax as it reports first half profit growth

Published: 19:13 15 Nov 2017 AEDT

Experian
Experian reported a 6% increase in operating profit in the first half

Experian Group PLC (LON:EXPN) said it saw a spike in enrolments at its new identity monitoring service in the immediate aftermath of a data breach at rival credit checking firm, Equifax, earlier this year.

However, the company said in its first half results that it may face greater regulatory and information security risks after the personal details of as many as 143 US consumers were accessed by hackers between mid-May and July at Equifax.

READ: Stronger headwinds to slow growth at Experian, Morgan Stanley says

“The notoriety of the breach has also increased in the near term the external risks associated with information security. We continue to see increased consumer protection focused legislative and regulatory activity in our key markets,” it added.

Equifax revealed in September that hackers stole social security numbers of Americans, prompting US lawmakers to demand new reforms. Experian generates more than half its revenues from North America.

In its first half results, Experian said it would be diversifying its revenue streams and reducing its dependence on credit subscription services.

Increased enrolments

In the wake of the hack at Equifax, Experian witnessed a sharp increase in enrolments at its IdentityWorks identity protection suite.

“Normalising for this event, take-up rates have been strong and, over the balance of the year, we will introduce new features to build on and sustain this momentum,” said Experian.

“Growth in IdentityWorks helped to offset ongoing moderation in our credit subscription product.”

Experian reported a 6% increase in operating profit to US$518mln for the six months ended September 30. Revenue rose 5% to US$2.1bn, driven by growth in business-to-business activities and an improvement in consumer services. 

 

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