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Experian profit jumps on cost-of-living driven demand, LatAm growth

Published 15/11/2023, 07:20
© Reuters. FILE PHOTO: Experian logo is seen on a smartphone in front of displayed same logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Eva Mathews

(Reuters) -Experian reported a higher first-half profit of $928 million on Wednesday, as consumer appetite for affordability assessments and investment portfolio analysis amid a cost-of-living squeeze boosted demand for its services.

The world's largest credit data firm also benefited from its fast-growing Latin American presence as it lifted its benchmark earnings before interest and tax for the six months to the end of September from $873 million in the same period of 2022.

Shares in FTSE 100 constituent Experian were up 5.5% to 2,830 pence at 1025 GMT, making it the top gainer on London's blue-chip index after its results.

Goldman Sachs (NYSE:GS) analysts said Experian's performance was reassuring given recent lacklustre results from U.S. competitors such as Equifax and TransUnion.

"All regions contributed positively. Double-digit growth in Latin America, a good performance in North America, improvement in EMEA and Asia Pacific, and resilient growth in the UK and Ireland," Experian said in a statement.

Conditions had improved in North America, which is the company's largest revenue contributor, after it focused on revenue streams such as new datasets and analysis tools, helping offset the impact of tighter lending standards, Experian added.

British lenders are also seeking more data on the finances of potential and existing customers due to the increased risk of borrowers struggling with their debts amid high interest rates.

Experian said its revenue from ongoing activities rose 6% at actual rates to $3.41 billion in the six month period.

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