- Third quarter revenue growth ‘top end’
- 2024 organic revenue guidance increased
- Latin America the standout performer
Global information services group Experian (EXPN) delivered solid third-quarter revenue growth of 9%, towards the top end of its forecast range.
On an organic basis in constant currencies, revenue was 6% higher compared with a year ago. Investors welcomed the positive update, sending the shares 3% higher to £32 making them one of the best gainers in the FTSE 100 index.
Over the last year the shares are up around 9% compared with a 4% drop in the blue-chip benchmark.
WHAT DID THE COMPANY SAY?
Chief executive Brian Cassin commented: ‘We delivered good growth in the third quarter, at the upper end of our expectations. Revenue was up 9% at actual exchange rates from ongoing activities and 7% at constant exchange rates, with organic revenue growth of 6%.
‘For FY24, we now expect full year organic revenue growth to be between 5-6%, with modest margin accretion, all at constant exchange rates and on an ongoing basis.’
Latin America was the standout performer notching-up organic revenue growth of 13% and total revenue growth of 17% including contributions from acquired businesses.
Within the region, which contributes 15% of group revenue, consumer services delivered revenue growth of 26% as the company reached the milestone of 100 million free members.
In the US, which is the group’s largest market contributing two thirds of group sales, organic revenue grew 5% with consumer services delivering 9% organic growth.
Free memberships grew to 69 million while premium services performed ‘well’ and the overall credit marketplace continues to reflect constraints in credit supply, the company said.
WHAT ARE THE EXPERTS SAYING?
Tom Gilbey, equity research analyst at Quilter Cheviot, said: ‘Experian delivered solid sales growth, with the company announcing a small beat compared to market expectations. While the macroeconomic picture remains uncertain, and smaller clients and fintechs are scaling back, Experian has benefitted from having good exposure to large, international clients.’
Killik & Co senior equity analyst Stephen Timoney commented: ‘This was a positive update from Experian, with organic growth circa 1% ahead of consensus expectations and FY24 guidance raised to the high end of the previous range.’
