Experian Plc - Half-year Report

 

Half-yearly financial report

7am, 12 November 2019 ? Experian plc, the global information services company, today issues its half-yearly financial report for the six months ended 30 September 2019.

Brian Cassin, Chief Executive Officer, commented:

"We have started the year well. First-half organic revenue growth was 7%, with acceleration in Q2. This reflects successful execution on big new addressable market opportunities, the global roll out of our innovative platforms and considerable momentum in Consumer Services as we invest in Experian Boost.

"We now expect full-year organic revenue growth in the 7-8% range, at the upper end of our previous guidance. We continue to expect EBIT growth at or above revenue growth and strong progress in Benchmark earnings per share, all at constant currency, and for the full year we expect operating cash conversion of around 90%."

Benchmark and Statutory financial highlights

 

2019
US$m

20182
US$m

Actual rates growth %

Constant rates growth %

Organic3 growth %

Benchmark¹

 

 

 

 

 

Revenue - ongoing activities

2,495

2,361

6

8

7

Revenue

2,495

2,364

6

8

n/a

Benchmark EBIT - ongoing activities4

670

647

4

6

n/a

Total Benchmark EBIT

670

649

3

5

n/a

Benchmark EPS

USc 49.1

USc 48.7

1

3

n/a

Statutory

 

 

 

 

 

Revenue

2,495

2,364

6

8

n/a

Operating profit

556

580

(4)

n/a

n/a

Profit before tax

480

470

2

n/a

n/a

Basic EPS

USc 39.0

USc 35.3

10

n/a

n/a

Total dividend

USc 14.5

USc 14.0

4

n/a

n/a

See Appendix 1 (page 13) and note 6 to the financial statements (pages 25-26) for definitions of non-GAAP measures.

2 Benchmark measures are restated for exited business activities which comprise certain B2B businesses. 3 Organic revenue growth at constant exchange rates.

4 See page 13 for reconciliation of Benchmark EBIT from ongoing activities to Profit before tax.

 

Strong first half performance.

  • Q2 organic revenue growth of 7% and H1 organic revenue growth of 7%.
  • B2B organic revenue growth of 6%.
  • Consumer Services organic revenue growth of 11% with rapidly growing new product portfolio.
  • Benchmark EBIT (ongoing activities) growth at constant rates of 6%.
  • Benchmark EBIT margin of 26.9%, down 50 basis points at both constant rates and actual rates, including one-off launch costs for Experian Boost.
  • Benchmark EPS growth of 3% at constant rates.

Operational highlights.

  • Strong momentum as we accelerate our global B2B innovation plays; Ascend, Experian One, open banking (Trusso and Verdus) and CrossCore all progressed strongly in the half, and considerable momentum in Experian Boost with quadrupling of revenues in CreditMatch.
  • Good momentum in North America, as B2B innovations take-hold and with double-digit Consumer Services growth.
  • Double-digit organic revenue growth in Latin America; preparing for positive data.
  • Generating audiences at scale as global free consumer memberships reach 70m across our three major markets, up from c. 45m last year.
  • Significant progress in Experian Boost, unique account connections of 2m US consumers.

Further strategic progress with US$437m investments in acquisitions, including Compuscan, and additional acquisitions and minority investments.

  • Continuing commitment to shareholder returns and disciplined capital allocation.
  • First interim dividend up 4% to 14.5 US cents per ordinary share.
  • Completed US$181m of the share repurchase programme to 8 November 2019, of which US$137m was in the first half.