Experian PLC (LSE:EXPN) has reported a rise in annual revenues despite a challenging economic backdrop, seeing growth in all regions, but profits took a hit from a goodwill impairment.
The credit checking agency said revenue in the year to March 31, 2023, rose by 6% to $6.59bn, up from $6.22bn the year prior in what the firm called a “year of very strong progress.” That was slightly below City expectations of $6.64bn.
In the results statement, Brian Cassin, Experian chief executive officer, commented: “We delivered very strong results in FY23, reflecting a combination of new business wins, new products and expansion into higher growth markets.
“We saw growth in every region, in many cases outperforming our underlying markets substantially.”
But pre-tax profit of $1.17bn was down from $1.45bn reflecting a non-cash charge for the impairment of goodwill of $179mln in EMEA, a decrease in net gain from associate disposals of $89mln, and an increase to the fair value of contingent consideration.
EPS fell to 0.84 cents from 1.27.5 cents but the dividend was increased by 6% to $54.75.
Consumer Services organic revenue rose 11% and Experian said it now serves 168mln free members, up 23mln year-on-year across an expanded range of products and services.
B2B organic revenue growth of 6% driven by new business wins, superior data and new product performance.
All regions contributed to organic growth, with significant expansion in Latin America, good performances across North America and the UK and Ireland, and improvement in EMEA/Asia Pacific.
“Despite the uncertain economic climate, we expect to deliver organic revenue growth in the range of 4% to 6% and modest margin accretion, all at constant exchange rates and on an ongoing basis,” Cassin added.