Experian PLC (LON:EXPN) shares moved higher on Tuesday after the consumer credit data group touted a “resilient performance” in the first half despite the coronavirus pandemic.
In its results for the six months to September 30, the FTSE 100 firm reported benchmark earnings (EBIT) of US$648mln, down 3% year-on-year, while revenues stood at US$2.487bn compared to US$2.495bn in 2019, reflecting the negative impact of foreign exchange translation, although the company reported organic revenue growth of 2% during the period.
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The company said the US mortgage market had added 3% to second quarter growth and also announced a first interim dividend of US$0.145 per share, unchanged year-on-year. Experian said its organic revenue growth for the entire second quarter was 5%, at the top end of its guidance range, with growth in North America and Brazil offsetting coronavirus-related declines in other territories.
Looking ahead, Experian’s chief executive Brian Cassin said the company expects third quarter organic revenue growth in the range of 3% to 5%, adding that while the pandemic has “significantly impacted the macroeconomic environment”, it has also “catalysed trends which play to Experian's strengths”.
“Innovation is our bedrock and has driven success for us in the marketplace. Once the crisis abates, we believe we will be strongly positioned to take advantage of the secular growth trends and we are excited by the opportunities we see ahead", Cassin said.
In a note, analysts at Shore Capital retained their ‘buy’ rating on the stock, saying the “strong set of results” for the period reflected Experian’s “strategic positioning and the need for and delivery of its essential services to clients” and that this positioning was “going to strengthen further”.
Experian shares rose 1.3% to 3,033p in early trading.