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Experian off to strong start with North America leading the way

In North America, organic revenue growth was up 11% year-on-year, with B2B up 12% and Consumer Services up 8%.
Experian said it expects FX movements would likely hit full-year earnings by 4%

Information services giant Experian PLC (LON:EXPN) left its full-year guidance unchanged after a solid start to its new financial year.

Revenue grew 9% year-on-year in the three months to the end of June, or 10% at constant exchange rates; organic revenue growth at constant exchange rates (CER) was 8%.

Experian reports its results in US dollars.

READ: Experian shares gain as 2018 revenues rise on growth in B2B division

The North America region marginally pipped Europe, Middle East and Africa (EMEA) plus Asia Pacific (APAC) as the best performing area, with 13% revenue growth (at CER) and 11% organic growth.

EMEA/AP weighed in with 11% revenue growth (at CER), all of which was organic, while Latin America notched up 4% growth in both categories.

The UK and Ireland region was the runt of the litter, with 4% growth at CER, of which 3% was organic.

The business-to-business (B2B) side of things saw organic revenue growth of 9% while consumer services grew revenue by 5% year-on-year.

"We have started the year well, in line with our expectations, with Q1 total revenue growth of 10% at constant exchange rates, up 9% at actual rates and organic revenue growth of 8%. Our performance continues to reflect a range of new product introductions across a number of areas, and for the year ahead, at constant currency, our guidance is unchanged,” said Brian Cassin, the chief executive officer of Experian.

Shore Capital said the strong trading trends seen in the final quarter of the previous financial year had continued into the first quarter period for the current year.

The group’s growth was in-line with its forecasts with North America and EMEA slightly ahead of its expectations, while Latin America was slightly below.

Commenting on Experian’s trading update, Steve Clayton, manager of the Hargreaves Lansdown Select UK Growth Shares fund, said Experian had enjoyed a strong start to the year, with organic growth in all divisions and territories.

“Growth was driven by successful new product launches, strong demand from lenders for credit data and some big wins for the group’s One Experian product. With cyber-crime an ever rising threat the group is seeing robust demand for Identity Protection products in its consumer services division,” Clayton said.

Shares in Experian were up 8p at 1,928.5p in early trading.

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