Experian benefits from spectacular growth in North America

Credit checking giant Experian has reiterated its full-year outlook, thanks to strong first-quarter growth in North America.

The FTSE 100 company’s organic revenue from ongoing operations rose 7 per cent at constant exchange rates in the three months to June.

Revenue from North America, where Experian gets about two-thirds of its business, rose 8 percent thanks to strong performance from its B2B and consumer services divisions.

Experian said the latter segment, which offers credit education, identity monitoring and fraud prevention services, benefited from new financial health features that drove demand for premium memberships.

In the British Isles, the group achieved more modest organic growth of 3 percent amid a weaker credit market.

It posted a stronger result in Latin America, where revenues expanded 8 percent thanks to higher debt renegotiation volumes in Brazil.

As a result, Experian continues to expect organic revenue to grow by 6 to 8 percent this year, while margin accretion rates will total between 30 and 50 basis points.

Experian also announced that its chief technology officer, Craig Boundy, will step down next month after just two years in the role to become president and chief executive of computer software developer McAfee.

Born in Maidstone, Kent, Boundy joined Experian as managing director of its UK and Ireland office in 2011 before taking charge of its North American business three years later.

The Lancaster University graduate intends to leave Experian on August 19 and start working at McAfee two days later.

Mike Rogers, President of Experian, said: ‘Experian’s success has been largely determined by a highly talented team, of which Craig has been a long-standing and valued member.

‘Craig has had a decisive and lasting positive impact on Experian.’

Headquartered in Dublin, Experian is best known for providing credit scores for more than one billion consumers to assess their suitability for loans, as well as products to protect people from fraud and identity theft.

The company was owned by retail conglomerate and former Burberry owner Great Universal Stores until 2006, when it was listed on the London Stock Exchange.

Tom Gilbey, equity research analyst at Quilter Cheviot, said: ‘The view is that Experian will benefit from favourable tailwinds in the growing use of consumer and business data.

“Similarly, the company is investing in higher value-added technology, which should help drive strong organic growth, as evidenced by this set of results. The company is also working in a favorable competitive environment with barriers to entry.”

Experian shares were down 1.6 percent at £35.81 on Tuesday morning, but still up around 15 percent over the past 12 months.