Experian reports strong H1 growth with increased revenue and earnings forecast

[shareaholic app="share_buttons" id_name="post_below_content"]

Experian plc (LON:EXPN), the global data and technology company, has issued its financial report for the six months ended 30 September 2024.

Brian Cassin, Chief Executive Officer, commented:

“We delivered good growth in H1. We continue to execute successfully on our growth strategy to introduce new products, deploy advanced analytics and scale our leading platforms. At constant currency and from ongoing activities, revenue was up 7%, Benchmark EBIT increased 10%, and Benchmark EBIT margin was up by 60 basis points. Currency was a 1% headwind to revenue and total Benchmark EBIT. Benchmark earnings per share increased by 8% at actual exchange rates.

“For FY25, we continue to expect organic revenue growth in the range of 6% to 8%. Based on our progress, we are raising our margin outlook, and now expect margin accretion to be towards the upper end of our +30 to +50 basis points guidance range. All measures are at constant exchange rates and on an ongoing basis.”

Benchmark and Statutory financial highlights
	2024 US$m	2023 US$m	Actual rates growth %	Constant rates growth %	Organic growth %²
Benchmark¹
Revenue – ongoing activities³	3,617	3,399	6	7	7
Benchmark EBIT – ongoing activities^3,4	1,011	932	8	10	n/a
Total Benchmark EBIT	999	928	8	9	n/a
Benchmark EPS	USc 76.0	USc 70.4	8	9	n/a
Statutory
Revenue	3,628	3,424	6	n/a	n/a
Operating profit	880	799	10	n/a	n/a
Profit before tax	718	763	(6)	n/a	n/a
Basic EPS	USc 60.2	USc 62.3	(3)	n/a	n/a
First interim dividend	USc 19.25	USc 18.0	7	n/a	n/a

1. See Appendix 1 (page 14) and note 6 to the condensed interim financial statements for definitions of non-GAAP measures.

2. Organic revenue growth is at constant currency.

3. Revenue and Benchmark EBIT for the six months ended 30 September 2023 have been re-presented for the reclassification to exited business activities of certain Business-to-Business (B2B) businesses, detail is provided in notes 7(a) and 8 to the condensed interim financial statements.

4. See page 16 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.

Highlights

· Strong H1 progress. Q1 organic revenue growth was 7%, with Q2 organic revenue growth also at 7%, resulting in total revenue growth from ongoing activities of 7% at constant and 6% at actual exchange rates.

You might also enjoy reading Experian plc 27.0% potential upside indicated by Jefferies

· All regions contributed positively in H1. Organic revenue growth was 7% in North America, 7% in Latin America, 2% in the UK and Ireland, and 7% in EMEA and Asia Pacific.

· Consumer Services organic revenue growth was 9%. We now serve over 190 million free members as we continue to grow membership and engagement, and provide innovative tools for our members to navigate their financial lives.

· B2B organic revenue growth was 6%, strengthening in Q2. Analytics expansion, mortgage, along with strong performance in our North America verticals, drove growth in H1.

· Benchmark EBIT from ongoing activities rose 10% at constant exchange rates and 8% at actual exchange rates to US$1,011m, with a Benchmark EBIT margin of 28.0%, up 60 basis points at actual exchange rates and constant currency.

· Good conversion from Benchmark EBIT into Benchmark EPS. Benchmark EPS growth of 8% at actual exchange rates, and 9% at constant exchange rates.

· Benchmark operating cash flow was US$707m, a conversion of 71% in our seasonally weaker half for cash conversion.

· Strong financial position, driven by capital discipline and strategic execution, with Net debt to Benchmark EBITDA of 2.0x.

· We invested US$818m in acquisitions to support our strategic growth.

· Statutory profit before tax of US$718m, a decline of (6)% (2023: US$763m), principally due to non-cash movements in the fair value of our interest rate swaps. Statutory Basic EPS down (3)%.

· First interim dividend up 7% to USc 19.25 per ordinary share.

There will be a presentation today at 9.30am (UK time) to analysts and investors via webcast. To view the slides and listen in online please go to experianplc.com for the link.

Experian will update on third quarter trading for FY25 on 15 January 2025.