Experian: More growth for credit data firm as it raises expectations
Experian shares rose as much as three per cent on Tuesday morning after it said activity in its UK, Ireland and Latin America regions helped deliver strong revenue growth in its third quarter. It has slightly lifted the lower end of its full-year forecast.
In an update to markets, the credit checker reported total revenue growth of nine per cent in the three months ended December 2023, with organic growth of six per cent.
Chief executive Brian Cassin said this was “at the upper end” of expectations.
Experian said it now expects between five to six per cent organic revenue growth in its full year, compared to four to six per cent issued in the previous quarter. The current VisibleAlpha analyst consensus estimate is 5.1 per cent.
Jefferies analysts said recent M&A activity is “likely” to add 0.5 per cent to full year revenue growth.
Experian saw growth in all its regions.
In the UK and Ireland, which make up 12 per cent of the group’s revenue, the company has seen “sizeable new business wins and new product initiatives”, as its analytics and affordability products performed well.
The FTSE 100 firm has ridden a wave of cautious and cash-strapped borrowers turning to data to keep track of their borrowing. Last year, Experian added 21m new customers.
But free membership growth is slowing, said Jefferies. In the UK and Ireland stayed at 13m for the third straight quarter, although this was up from 10.8m in the same period in 2022.