Experian is now expecting its revenue growth to fall between 13% to 15%
Experian (LON:EXPN) revealed its upbeat quarterly trading update on Thursday, putting its results down to a stronger than anticipated recovery.
For the three months ending on 30 June, the FTSE 100 company saw its total revenue grow by 31% at actual exchange rates, while at constant exchange rates this figure was 27%.
Organic revenue growth during Q1 2021 was 22%, as each region and segment grew. During the same period last year, organic revenue growth was down by 2%.
“We delivered a strong performance in Q1 through a combination of successful delivery of our innovation-led strategy and faster than expected recovery as economies emerge from the COVID-19 pandemic,” said chief executive Brian Cassin.
Subsequently, Experian raised its full year outlook and is now expecting its revenue growth for the year to fall between 13% to 15% with organic revenue growth between 9% to 11%.
Commenting on the statement, Steve Clayton, fund manager at Hargreaves Lansdown Select said:
“Experian has outperformed its own and the market’s expectations in the quarter to end June. Last year, growth was held back by the pandemic and Experian trod water. But with economies reopening stronger than the company had expected, revenue in the quarter has leaped forward by 31%. Even after we strip out some currency gains and a bit of M&A, underlying growth was 22%, driven by the core Credit Bureaux data and increasingly, their Consumer Services offering.”
“The company are upping their guidance for the rest of the year and now see organic growth coming in at 9-11%, with total revenue growth potentially hitting 15% for the full year to 31 Mar 2022. The business performed strongly in all regions, with underlying growth of 22% in North America, 25% in Latin America and 20% back home in the UK,” Clayton added.
“Crucially, Experian are also talking profit margins higher, suggesting profit growth for the year could be very strong indeed.”
The Experian share price is up by 5.11% during the morning session on Thursday.
