Experian (LSE:EXPN) PLC lifted its guidance for the current financial year after posting a strong first-half performance boosted by “standout” growth in its consumer services business.
The global information services company said it now expects revenue for the financial year to end-March 2022 to show organic growth of 11%-13%, up from its previous forecast of 9%-11%. Total revenue is predicted to rise 15%-17%.
The company also forecast continued strong EBIT margin accretion.
It said EBIT performance was previously weighted towards the second half of the year. However in FY22, revenue and benchmark EBIT are expected to be uniform across the year following an upturn in the first half as economies began to recover from the Coronavirus (COVID-19) pandemic.
Experian (LSE:EXPN) reported pre-tax profits of US$654mln for the six months to 30 September 2021 compared with US$458mln in the same period last year.
Benchmark EBIT grew 25% to US$806mln at constant exchange rates, with benchmark earnings per share up 30% at 61.7 cents.
Revenue rose 23% to US$3.06bn, boosted by “outstanding” growth in the consumer services business, where revenue surged 27% and free consumer memberships increased by 26mln across the company's principal markets to 122mln.
The company said its B2B operations continued to perform well with growth across all regions. B2B organic revenue increased 12% in the first half.
Revenue rose in all regions in the first half. On an organic basis, North America grew 16%, Latin America 20%, the UK and Ireland 15% and EMEA/Asia Pacific by 6%.
In the UK and Ireland, strong progress in the company’s transformation programme led to a near doubling in the EBIT margin in the first half.
Operating cash flow increased 25% in the first half and cash flow conversion was 89%. Experian lifted its guidance for conversion to 100% for the full year.
"Our growth is being enabled by a successful innovation-led strategy which has financial inclusion at its heart," commented chief executive Brian Cassin. "Our aim is to empower consumers and businesses globally, improving financial health for all by using our capabilities as a force for good to transform lives and power opportunities."