Experian profits rise as customers lean on credit checks
Experian reported a rise in underlying profits in the first half of the year as customers lean on credit checks as they turn borrowing to cope with the rising cost of living.
The London-listed firm, which allows consumers and firms to track their credit data, said total benchmark operating profit came in at $873m for the six months to the end of September, compared with $806m a year ago, as revenues at the firm jumped eight per cent to $3.23bn on the same period last year.
Experian recorded a $152m non-cash ‘impairment of goodwill’ charge in EMEA however on the back of rising interest rates, which pushed pre-tax profits to $517m, down from $654 last year.
Brian Cassin, Chief Executive Officer, said he expected the operating environment to remain difficult for the period ahead.
“While we expect economic conditions to be tougher over the balance of the year, and face some stronger comparables in Q3, our full year expectations are unchanged,” he added.
“We expect organic revenue growth of between 7-9 per cent, total revenue growth of between 8-10 per cent and modest margin accretion, all at constant exchange rates and on an ongoing basis.”
Analysts said the economic landscape remained a threat but Experian was well-placed as consumers turn to borrowing.
“This was a decent half for Experian who’ve been able to maintain momentum despite consumers and businesses dealing with higher inflation and rising costs,” said Matt Britzman, Equity Analyst at Hargreaves Lansdown.
“The threat of a global downturn very much remains, though, but as consumers work through their savings and look to borrowing to finance their lifestyles, Experian’s in a position to get some relief there.”