Experian on track after flat revenue in third quarter

15th Jan 2015 07:18

Organic revenue for the three months to 31 December was flat at information services group Experian, in line with expectations as US consumer pain continued. In the period, total revenue from continuing activities was down 1%, with growth at constant exchange rates down 2% due to the acquisition of Passport Health Communications and to strong currency headwinds.In the third quarter, the group's credit services and decision analytics businesses saw their organic revenue increase 6% and 1% respectively, while the marketing services arm fell 1% and the consumer services division fell 12% as transition pain in North America continued."Our credit services business performed well, with strength across all regions, including our big markets in the US, Brazil and the UK," said Brian Cassin, the group chief executive."Our plans for transitioning North America consumer services are on track, and while it is early days, we're encouraged by the market response to the major release of the Experian FICO product, which took place at the end of the quarter."In a statement released on Thursday, the FTSE 100 group added that its financial position remained strong and that it expected to meet its full-year targets."We are confident of our ability to return Experian to top-line growth as we exit the year," said Cassin.He added the group was on track to maintain margins at constant currency, deliver further good progress in benchmark earnings at constant currency and to exceed 95% cash flow conversion by the end of the financial year.Broker Liberum said the result was in line with its expectations."We remain optimistic that organic growth should pick-up in the final quarter, not least aided by the annualisation of prior year acquisitions, the reducing size of consumer relative to the group as well as a continuation of improved trading conditions in credit services."Our 'buy' case remains predicated on the inherent strength of Experian's positioning in Credit, its opportunity to cross-sell new products, expand regionally as well as the cash generative strength of the business and its premium returns."