(Sharecast News) – Credit-checking firm Experian said on Tuesday that its third-quarter performance was better than it had expected, with organic revenue growth of 7% despite the pandemic.
In an update for the three months to the end of December 2020, the company said total revenue growth was 10% at constant exchange rates.
In North America, which accounts for 63% of group revenue, organic revenue grew 9% during the period, with B2B and consumer services revenue up 6% and 18%, respectively.
Experian said B2B growth was driven by a combination of factors, including ongoing strength in both mortgage volumes and Experian Ascend, with volume recovering for Clarity Services.
“These factors offset ongoing Covid-19 related weakness in credit reference volumes in support of unsecured lending, as well as in targeting (marketing data),” the company said.
In the UK & Ireland, meanwhile, both total and organic revenue were down2% at constant exchange rates. Experian said that despite the overall decline, the trajectory in B2B has improved, driven by increased new business and strengthening transactions reflecting improved credit supply.
Business credit and consumer information delivered growth, largely offsetting ongoing weakness in Decisioning.
Experian said it expects that organic revenue growth for the fourth quarter of FY21 will be between 3% and 5% against a strong prior year comparative, as it laps last year’s mortgage uplift. For the full year ending 31 March 2021, the company expects benchmark earnings before interest and tax of between $1.36bn and $1.38bn.
Chief executive Brian Cassin said: “Experian is performing very well, even in the exceptional circumstances created by the pandemic, and we expect to deliver a strong performance for this financial year. This again illustrates the resilience of our business. We remain highly focused on investing to sustain this performance and to take full advantage of the recovery when it comes.”
