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Wednesday 20 May 2020

Experian delivers strong growth in Americas and B2B

ExperianCredit scoring and information services provider, Experian, has released full year results reflecting sustained, strong growth in North America, in the face of declining domestic revenues. For the year ended 31st March 2020, Experian reported global revenues up 6.5% to $5.18bn and profits after tax down 3.1% to $679m.

Experian’s revenues from North America rose by 11% last year to $3.25bn, whilst LATAM was up 3% to $732m and revenues from EMEA and APAC were up 2% to $431m. Meanwhile, in the company's domestic market of UK and Ireland, revenues fell by 5% from $819m to $769m, with operations underperforming expectations in both B2B and B2C. As a result, Experian has launched a transformation programe in the territory, in an effort to turn its fortunes around.

Off the back of its previous data investments, Experian’s B2B operations delivered encouraging organic growth of 10%, with revenue increasing across all regions. The company’s new "on demand" analytics offering, Ascend, has so far gone live in six countries, whilst customers in other territories are currently sandboxing the technology. Additional roll-outs are planned for 2021, with total contract value from Ascend to date at $313m.

Experian indicated that whilst it is continuing to operate smoothly, with most employees working from home, short-term revenues are likely to be impacted by COVID-19. Whilst the company does have a healthy balance sheet and is cash generative it is taking precautionary cost actions to mitigate for the effects of lockdown and the coronavirus. Meanwhile, Experian has also been helping to support small businesses in the UK by providing free access to credit reports.

Experian’s consumer revenues in UK & I have been flat or in declining for several quarters now. Although there are wider economic factors at play, it is interesting to consider the potential impact of the newcomers to this space. A number of innovative, consumer focused startups have enjoyed strong growth of late and are increasingly providing an alternative to the established players (see: TotallyMoney scores £5m to boost growth). However, with B2B and the Americas both growing strongly, and the latter delivering 77% of Experian's total revenues, this is not yet a challenge on a global scale.

Posted by: Jon C Davies

Tags: results  

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