Half-yearly financial report

10 November 2015 Experian, the global information services company, today issues its half-yearly financial report for the six months ended 30 September 2015.

General Highlights

  • Good growth momentum; into our target range for organic revenue growth.
  • Delivering on capital framework; with higher dividend payout ratio and US$200m share repurchase extension, linked to divestments.
  • Strength in key areas of Credit Services and improvement in North America Consumer Services.
  • Foreign exchange was a significant headwind in the period.
  • Successfully delivering on our five strategic priorities.

Financial Highlights

  • Total revenue from continuing activities was US$2,216m, up 4% at constant exchange rates, with organic revenue also up 4%. At actual exchange rates, total revenue from continuing activities fell by 6% reflecting foreign exchange headwinds during the period. Total revenue was US$2,239m.
  • Total EBIT from continuing activities was US$570m, up 3% at constant exchange rates. At actual exchange rates, total EBIT from continuing activities was down 8%. Total EBIT was US$576m.
  • EBIT margin from continuing activities was stable at constant exchange rates. The impact of foreign exchange movements reduced EBIT margin at actual exchange rates by 60 basis points to 25.7%.
  • Benchmark profit before tax was US$541m, up 4% at constant exchange rates. Profit before tax was US$458m at actual exchange rates (2014: US$534m).
  • Operating cash flow conversion was 95%. Net debt increased by US$138m reflecting share purchases, with net debt to EBITDA now at 2.1 times.
  • Benchmark EPS was 42.0 US cents, up 5% at constant exchange rates and down 7% at actual exchange rates. Basic EPS was 34.3 US cents (2014: 41.8 US cents).
  • First interim dividend of 12.5 US cents per ordinary share, raised 2% to reflect the underlying strength of the business, notwithstanding the foreign exchange headwinds.
  • Share repurchase programme extended by US$200m.

 Brian Cassin, Chief Executive Officer, commented: 

“We are making substantial progress on our five strategic priorities. We’ve taken steps to focus the portfolio, the trend in organic revenue growth has improved and we are returning more capital to shareholders. We have seen particular strength in key parts of the business, such as Credit Services and Decision Analytics, while in other areas our recovery actions are gaining traction. With this progress on our strategic priorities we are creating a strong platform for delivering sustainable growth.”

“As we look ahead for the full year, while foreign exchange will continue to be a headwind, at constant currency we expect organic revenue growth to be in the mid-single digit range, to deliver stable margins and to see further progress in Benchmark earnings per share.”

View the full press release in PDF Format

Contacts 

Experian

Brian Cassin                            Chief Executive Officer             +44 (0)20 3042 4215

Lloyd Pitchford                        Chief Financial Officer

Nadia Ridout-Jamieson           Director of Investor Relations

James Russell                         Director of Corporate Communications 

Finsbury

Rollo Head                                                                                +44 (0)20 7251 3801

Jenny Davey

There will be a presentation today at 9.30am (UK time) to analysts and investors at the Bank of America Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live via the link from the Experian website at www.experianplc.com and can also be accessed live via a dial-in facility on +44 (0)20 3037 9164. The supporting slides and an indexed replay will be available on the website later in the day. 

Experian will update on third quarter trading on 15 January 2016. 

See Appendix 1 and note 5 to the financial statements for definitions of non-GAAP measures 

Roundings

Certain financial data have been rounded within this announcement. As a result of this rounding, the totals of data presented may vary slightly from the actual arithmetic totals of such data. 

Forward looking statements

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward looking statements. See page 15 for further information on risks and uncertainties facing Experian. 

Company website

Neither the content of the Company’s website, nor the content of any website accessible from hyperlinks on the Company’s website (or any other website), is incorporated into, or forms part of, this announcement.  

About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2015, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.  

We employ approximately 17,000 people in 38 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2015 was US$4.8 billion. 

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, ‘Inside Experian’.