Experian: Strong consumer spending and mortgage demand drive solid growth

May 15, 2024 3:29 am
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Experian has reported a high single-digit revenue boost for fiscal 2024.

Experian has reported a high single-digit revenue boost for fiscal 2024.

Global data and technology company Experian said today that solid consumer activity helped drive growth across the business in its 2024 financial year, and it expects this trend to continue.

In the company’s results for the year to 31 March 2024, Experian said total revenue growth from ongoing activities was eight per cent at actual exchange rates and seven per cent at constant exchange rates. Organic revenue growth was six per cent and the company generated $1.9bn (£1.5bn) of operating cash flow thanks to strong profit margins.

Tom Gilbey, equity research analyst at Quilter Cheviot, said this growth was “slightly” ahead of market expectations.

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For the year, Experian reported revenue of $7.1bn (£5.6bn) and benchmark earnings before interest and tax (EBIT) of $1.9bn (£1.5bn). Benchmark earnings per share came in at 145.5 cents (115p).

The company said all of its main markets generated growth last year. It said Latin America achieved double-digit growth, with a “solid performance in North America,” while UK and Ireland growth was “resilient” and EMEA and Asia Pacific growth “accelerated.”

Margin growth in Latin America also helped the group boost its full-year margin to 29.6 per cent.

Consumer services revenue grew by seven per cent, and the company also saw organic business-to-business growth of five per cent.

Looking to the year ahead, Experian said it expected to see the same sort of growth in fiscal 2025 with organic revenue growth in the range of six per cent to eight per cent for the full year. “The full year 2025 and medium-term guidance are promising, indicating a robust economic recovery coupled with continuous innovation that is expected to drive strong financial performance,” Gilbey noted.

One of the key growth drivers in the year ahead could be the US mortgage market, which saw a strong recovery in the last few months of 2023. Revenue growth accelerated to eight per cent in the fourth quarter of 2023 thanks to a resurgence in the mortgage market.

Brian Cassin, chief executive officer, said: “Full-year 2024 growth was at the top end of our expectations…For 2025, we expect further strategic progress and expect to deliver organic revenue growth in the range of six per cent to eight per cent. We also expect good margin expansion, in the range of 30-50 basis points, at constant currency.”

Cassin added: “Looking further ahead, we expect the combination of economic recovery, continued new product and vertical market expansion as well as productivity gains from technology cloud transition to elevate our financial performance. We anticipate strong organic revenue growth, good margin accretion and reduced levels of capital expenditure.”

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