Experian revenue grows as data demand increases but currency woes hit profits
Data services company Experian grew revenue in the first half of the year as demand increased but profits fell on currency exchange losses.
The figures
Experian reported total revenue of $2.36bn for the six months ending 30 September, a seven per cent increase on the same period in 2017.
Pre-tax profit fell five per cent to $470m due to foreign exchange losses in Brazil equating to $43m.
Revenue for its UK and Ireland division rose six per cent to $396m.
Why it's interesting
The company's strongest growth came in its B2B division, which sells data to companies and also helps firms make decisions based on a customer's credit history.
Experian said its full year organic growth would be at the top of its previous guidance range of six to eight per cent.
Tighter regulations regarding data and security breaches appear to have led a demand for Experian's services.
But Experian also said heightened legislative and regulatory activity posed a risk to the company.
Shares rose six per cent this morning following the half-yearly results.
What Experian said
Chief executive Brian Cassin said: “We have started the year well, with first half organic revenue growth of eight per cent as we expand our data assets, introduce new global products and gain momentum in consumer services.
“We now expect full-year organic revenue growth in line with the first half, and at the top of our previous guidance range”
Cassin added that foreign exchange translation remained a headwind.
What the analysts said
CMC Markets analyst David Madden said: “Experian shares are higher this morning after the company released a strong set of results.
“Tighter regulations and data and a number of high profile security breaches has prompted demand for their services.
“Experian are optimistic in their outlook too, and they predict full-year organic revenue will be at the top end of their previous guidance.”