TIDMEXPN
RNS Number : 0935M
Experian plc
19 January 2021
news release
Trading update, third quarter
19 January 2021 -- Experian, the global information services
company, today issues an update on trading for the three months
ended 31 December 2020 .
Commenting on the performance, Brian Cassin, Chief Executive
Officer, said:
"Our performance in Q3 was better than we expected. We delivered
organic revenue growth of 7% and total revenue growth of 10% at
constant exchange rates.
"Experian is performing very well, even in the exceptional
circumstances created by the pandemic, and we expect to deliver a
strong performance for this financial year. This again illustrates
the resilience of our business. We remain highly focused on
investing to sustain this performance and to take full advantage of
the recovery when it comes.
"I am hugely grateful to my colleagues for their hard work and
commitment. Their efforts have demonstrated the positive role our
business plays in our communities and that data can be a
significant force for good in helping to navigate the crisis,
ensuring financial support reaches those most in need."
% change in revenue from ongoing activities year-on-year for the
three months ended 31 December 2020
Ongoing activities Total revenue Total revenue Organic revenue
only growth % growth % growth %
At actual At constant At constant
exchange rates(1) exchange rates exchange rates
-------------------- ------------------- ---------------- ----------------
North America 11 11 9
Latin America (11) 13 13
UK and Ireland 1 (2) (2)
EMEA/Asia Pacific 21 16 (11)
------------------- ---------------- ----------------
Total global 7 10 7
-------------------- ------------------- ---------------- ----------------
1 Experian reports in US dollars.
% change in organic revenue year-on-year for the three months
ended 31 December 2020
Organic revenue growth Data Decisioning B2B(3) Consumer Total
% (2) Services
North America 7 2 6 18 9
Latin America 1 5 2 178 13
UK and Ireland (1) (5) (2) 1 (2)
EMEA/Asia Pacific (8) (15) (11) n/a (11)
----- ------------ ---------- ------
Total global 4 (1) 2 22 7
------------------------ ----- ------------ ------- ---------- ------
2 Ongoing activities only, at constant exchange rates.
3 B2B = Business-to-Business segment consists of Data and
Decisioning business sub-divisions.
Business mix including % change in organic revenue year-on-year
for the three months ended 31 December 2020
Segment Business unit Q1 organic Q2 organic Q3 organic
revenue revenue revenue growth
growth %(4) growth %(4) %(4)
------------------- ------------- ------------- ----------------
North America 4 9 9
----------------------------------- ------------- ------------- ----------------
Data CI / BI Bureaux 4 14 12
--------------
Automotive (3) 1 (3)
Targeting (15) (16) (7)
---------------------------------- ------------- ------------- ----------------
Decisioning Health 1 4 5
--------------
DA / Other (1) 0 (2)
---------------------------------- ------------- ------------- ----------------
Consumer Consumer Services 10 16 18
-------------- ------------------- ------------- ------------- ----------------
Latin America (1) 10 13
----------------------------------- ------------- ------------- ----------------
Data CI / BI Bureaux (5) 1 1
--------------
Other 12 7 0
---------------------------------- ------------- ------------- ----------------
Decisioning DA / Other (9) 3 5
-------------- ------------------- ------------- ------------- ----------------
Consumer Consumer Services 104 197 178
-------------- ------------------- ------------- ------------- ----------------
UK and Ireland (15) (8) (2)
----------------------------------- ------------- ------------- ----------------
Data CI / BI Bureaux (14) (8) 3
--------------
Targeting /
Other (21) (3) (13)
---------------------------------- ------------- ------------- ----------------
Decisioning DA / Other (13) (8) (5)
-------------- ------------------- ------------- ------------- ----------------
Consumer Consumer Services (18) (11) 1
-------------- ------------------- ------------- ------------- ----------------
EMEA/Asia Pacific (20) (17) (11)
----------------------------------- ------------- ------------- ----------------
EMEA (25) (16) (9)
----------------------------------- ------------- ------------- ----------------
Asia Pacific (13) (18) (14)
----------------------------------- ------------- ------------- ----------------
Total global (2) 5 7
----------------------------------- ------------- ------------- ----------------
4 Ongoing activities only, at constant exchange rates.
CI = Consumer Information, BI = Business Information, DA =
Decision Analytics.
North America - 63% of Group revenue(5)
North America delivered a strong performance. Organic revenue
growth was 9%, with B2B up 6% and Consumer Services up 18%. Total
revenue growth at constant exchange rates was 11%, mainly
reflecting the contribution from Tapad, acquired in November.
B2B growth was driven by a combination of factors, including
ongoing strength in both mortgage volumes and Experian Ascend, with
volume recovering for Clarity Services. These factors offset
ongoing COVID-19 related weakness in credit reference volumes in
support of unsecured lending, as well as in targeting (marketing
data). In Decisioning, strong performances in health and fraud
management offset softness in decisioning software.
Strength in Consumer Services was supported by ongoing expansion
of the membership base. Free memberships reached 38m, with 5.7m US
consumers having connected their accounts to Experian Boost. There
was good demand for credit education and identity monitoring
subscription services which benefited from heightened consumer
interest during this period. Lead generation revenues performed
well, notwithstanding tighter lending conditions for credit card
and personal loan offers and helped by the expansion into
automotive insurance earlier this year.
Latin America - 14% of Group revenue (5)
In Latin America, both total and organic revenue increased by
13%.
B2B revenue was up 2% with strength in new initiatives
offsetting weakness in credit bureau volumes. Brazil benefited from
increased contributions from positive data propositions, Experian
Ascend and from our automotive vertical. Spanish Latin America had
a strong quarter, helped by recovering bureau volumes in
Colombia.
We delivered considerable growth in Consumer Services in Latin
America, with revenue up 178%. In Brazil, free consumer memberships
increased to 56m. Limpa Nome, our debt resolution service,
delivered strong growth following a highly successful annual credit
fair. We also benefited from transaction growth on our eCred credit
matching marketplace, as well as a growing contribution from
identity theft protection services.
UK and Ireland - 15% of Group revenue (5)
In UK and Ireland both total and organic revenue, at constant
exchange rates, were down (2)%.
While still down overall, the trajectory in B2B has improved and
organic revenue declined (2)%. Recovery has been driven by
increased new business and strengthening transactions reflecting
improved credit supply. Business credit and consumer information
delivered growth, largely offsetting ongoing weakness in
Decisioning.
Consumer Services returned to growth with organic revenue up 1%.
We continue to add free memberships, now at 8.9m, and we are
encouraged by the initial consumer reaction to Experian Boost.
Since the launch in November 230,000 consumers have connected their
accounts. Credit monitoring subscription revenue delivered growth
and, while lead generation revenues are still down overall, the
trajectory has improved considerably.
EMEA/Asia Pacific - 8% of Group revenue (5)
At constant exchange rates, total revenue across EMEA/Asia
Pacific increased by 16%, while organic revenue declined by (11)%.
The difference principally related to the contribution from the
acquisition of the Risk Management division of Arvato Financial
Solutions.
There was some gradual sequential improvement in bureau volumes
in EMEA, although these remain lower overall year-on-year. Our
bureaux in Asia Pacific continue to be heavily impacted by the
effects of the pandemic crisis, particularly in India. Decisioning
also remains weak due to slower client decision-making in relation
to software acquisition.
Near-term guidance
We expect that organic revenue growth for Q4 FY21 will be in the
range of 3-5%, against a strong prior year comparative as we lap
last year's mortgage uplift. For the full year ending 31 March 2021
we expect Benchmark EBIT in the range of US$1,360 - 1,380m.
Future events
Experian will release results for the full year ending 31 March
2021 on Wednesday 19 May 2021.
5 Percentage of Group revenue based on FY20 revenue at actual
rates.
Contact:
Experian
Nadia Ridout-Jamieson Investor queries +44 (0)20 3042 4278
Gerry Tschopp Media queries
Tulchan
Graeme Wilson, Louise Male and Guy Bates +44 (0)20 7353 4200
This announcement is available on the Experian website at
www.experianplc.com . There will be a conference call today to
discuss this update at 9.00am (UK time), which will be broadcast
live on the website with a recording available later.
All financial information in this trading update is based on
unaudited management accounts. Certain statements made in this
trading update are forward-looking statements. Such statements are
based on current expectations and are subject to a number of risks
and uncertainties that could cause actual events or results to
differ materially from any expected future events or results
referred to in these forward-looking statements.
Neither the content of the Company's website, nor the content of
any website accessible from hyperlinks on the Company's website (or
any other website), is incorporated into, or forms part of, this
announcement.
About Experian
Experian is the world's leading global information services
company. During life's big moments - from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers - we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have 17,800 people operating across 45 countries and every
day we're investing in new technologies, talented people and
innovation to help all our clients maximise every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
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