UPDATE: Experian Revenue Up In Fiscal 1Q As Regions Recover

15th Jul 2010 08:10

(Adds detail, analyst comment.) By Jessica Hodgson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K.-based credit-checking company Experian PLC (EXPN.LN) Thursday hailed signs of continued revenue growth recovery in the first three months of its fiscal year in most regions. Experian said revenue for the three months ending June 30, 2010 rose 9% at actual exchange rates, compared with an 8% decline in revenue growth at actual exchange rates in the year earlier period. Revenue rose 7% at constant exchange rates, 6% on an organic basis, allowing the company to target mid-single-digit growth rates in organic revenue and earnings before interest and tax for the 2011 fiscal first half. Chief Executive Officer Don Robert said in a statement that the revenue growth was evidence of "improved performance across all our geographies." The company pointed in particular to revenue growth--on an organic and total basis--in North America of 5%. Revenue remains weak in the U.K., declining at actual exchange rates by 4% for the first three months and at constant exchange rates by 1%. Revenue growth in this region has recently been a concern for some analysts. Revenue growth in Latin America remains strong, at 22% for the first three months of the fiscal year on both a total and organic basis. Revenues at constant exchange rates and on a total basis increased 10% in the EMEA and Asia Pacific region. Experian doesn't provide earnings data for its first quarter. Experian supplies data and analytics tools for credit scoring and risk management to businesses and consumers. Over half of its business is in North America and it reports in dollars. The company has recently focused on building its business in markets such as Latin America and India and on developing web-based services, to reduce its exposure to the financial services sector. Robin Speakman, at Shore Capital, said the first three months of the fiscal year were better than expected, but showed an increasing divergence between the health of the company's newer businesses, such as its interactive services and business in Latin America, and the credit checking business which is more challenged. In particular, Speakman said, the credit checking business appears to be recovering more slowly than expected in North America. "Experian's future is in interactive services and new markets, not the credit checking business," Speakman said. Shore Capital has a hold rating on the stock which is currently under review. The company's business is closely linked to the health of business and consumer credit markets. Recently, banks in the U.K. have been limiting the availability of credit to customers, meaning many of Experian's customers have been reducing their use of "front end" services like those Experian provides, to assess potential customers. At 0703 GMT. Experian shares were up 1.2%, or 8 pence, at 641 pence. -By Jessica Hodgson; Dow Jones Newswires; +44207 8429373; [email protected]. (END) Dow Jones Newswires July 15, 2010 03:10 ET (07:10 GMT)