Experian experiences slight slowdown in first quarter

The credit checking giant reported revenues up 4% in the three months to 30 June, compared to the 6% reported growth in the past year

The fourth quarter of the previous year had been particularly strong

Experian PLC (LON:EXPN) reported a slight softening in growth at the start of its new financial year, though there were silver linings in a recovery in the UK consumer arm and in the Brazilian business.  

The credit checking giant reported revenues up 4% in the three months to 30 June, or up 7% at constant exchange rates, with organic growth up 6%.

READ: Credit Suisse doesn’t see the value in Experian after recent share price surge

This was slower that the 6% reported growth in the past year, when organic revenue had risen 9% after a fourth quarter rise of 10%.

“We are excited about our prospects and for the year ahead our guidance is unchanged,” said chief executive Brian Cassin.

In the UK & Ireland, total and organic revenue growth was flat as the consumer arm returned to growth in the quarter but was offset by a 1% decline in B2B. The decisioning segment saw a 13% decline compared to a strong prior-year quarter.

North America delivered 8% organic growth, with consumer services up 9% as in the prior quarter and B2B at 8%.

Latin America’s organic revenues were up 9%, with Brazil said to be coming back “strongly, with encouraging performances across the business” and further growth in Spanish Latin America, especially in Colombia.

Currency volatility had around a 2% impact on organic revenues at this stage, feeding through to a 1% hit to underlying profit for the full year.

Broker Shore Capital said: "We expect Experian to continue to deliver good organic growth with strong cash generation reflecting stable margin performance – leveraging growing demand for its data capability across geographic regions and vertical segments."

Experian shares, which hit an all-time high of almost 2,500p in recent weeks, were down 2% to 2,370p on Tuesday. 

Quick facts: Experian

Price: 2813 GBX

Market: LSE
Market Cap: £25.55 billion

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