Experian wary of prospects in Eurozone

Latin America continues to be the engine of growth at financial data company Experian, but the company is edgy about its prospects in the Eurozone.

Group revenue in the three months to the end of June was up 14% on a constant currency basis, with organic revenue growth of 9% at constant exchange rates, in what is the first quarter of the group's financial year. To put that into context, in the whole of the financial year just finished, organic revenue growth was 10% year-on-year.

On a constant currency basis and with organic growth figures in brackets, the regional breakdown for revenue growth was as follows: North America +10% (+8%); Latin America +33% (+18%); UK & Ireland +7% (+4%); Europe, Middle East, Africa and Asia +5% (+4%).

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At actual exchange rates, total revenue from continuing activities increased by 7%, with the difference mainly reflecting depreciation of the Brazilian Real relative to the US dollar.

By principal activity, organic revenue growth was 10% at Credit Services, 3% at Decision Analytics, 6% at Marketing Services, and 11% at Consumer Services.

"We continue to execute against our growth strategy, though looking ahead we are mindful of tougher conditions in some markets, notably in the Eurozone," said Experian's Chief Executive Officer, Don Robert.

"For the first half, we expect high single-digit organic revenue growth and for EBIT [earnings before interest and tax] to progress in line with revenues, on a constant currency basis. For the full year, we continue to expect performance to be consistent with our core financial objectives of mid to high single-digit organic revenue growth, to maintain or improve margin and achieve cash flow conversion of over 90%," Robert revealed.

JH