Experian: Credit checker holds guidance as number of customers up by more than 21m
Shares in credit checker Experian bounced up over five per cent after it posted an upswing in growth and held its forecast for the full year the same after seeing a 21m rise in customers.
In a market update on Wednesday, the FTSE 100 firm said it saw improvement across all regions and organic revenue notched up five per cent to $3.4bn (£2.7bn) in the six months ending September, slightly above consensus estimates.
Experian boosted its free member base by 21m year on year, up to 178m, as cash-tight borrowers look to the firm amid a credit pinch.
It has benefited from cautious borrowers turning to data to keep track of their borrowing.
Profits jumped to almost $799m (£641m) for the half year compared to $513m (£ 411m) in the same period in 2022.
AJ Bell investment director Russ Mould said the positive results demonstrate “the benefits of Experian’s more diversified model – the ability to translate a 5 per cent increase in revenue to a near 50 per cent increase in pre-tax profit is impressive and testament to just what an efficient and profitable operation this is.
“Ultimately data plays an increasingly critical role in the global economy and that is not something which is likely to change in the short, medium or long term. As long as Experian can continue to execute properly its prospects look pretty strong.”
For the full year, chief Brian Cassin said he still expects organic revenue growth in the range of four to six per cent and “modest margin accretion”.
Cassin said the growth is thanks to the “breadth of our portfolio”, as well as new products and customers.
In the UK and Ireland, Experian reported “resilient growth” as well as and across B2B and consumer services units.
Jefferies analysts said Experian’s strategy “provides a long runway for growth but risk/reward is balanced as the US edges towards cyclical downturn.”