Trading update, third quarter

15 January 2015

Experian, the global information services company, today issues an update on trading for the three months to 31 December 2014.

"We made good progress in the quarter executing against our strategy, and for Q3 FY15 we delivered total revenue growth at constant exchange rates of 2%, while as expected organic revenue was unchanged. Our Credit Services business performed well, with strength across all regions, including our big markets in the US, Brazil and the UK. 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.

"Looking ahead, our expectations are unchanged. We are confident of our ability to return Experian to top-line growth as we exit the year, and for the full year to maintain margins (at constant currency), to deliver further good progress in Benchmark earnings (at constant currency) and to exceed 95% cash flow conversion"

% change in revenue year-on-year for the three months to 31 December 2014
Continuing activities only1Total growth %
At actual exchange rates2
Total growth %
At constant exchange rates
Organic growth %
At constant exchange rates
North America 1 1 (3)
Latin America (7) 5 5
UK and Ireland 2 5 3
EMEA/Asia Pacific (9) (1) (1)
Experian (1) 2
  1. Continuing activities exclude the contributions of small discontinuing businesses in Latin America and EMEA/Asia Pacific
  2. Experian reports in US dollars

In the three months to 31 December 2014, total revenue from continuing activities was down 1%, at constant exchange rates growth was 2% and organic revenue was unchanged. The differences relate mainly to the acquisition of Passport Health Communications, Inc (Passport) and to foreign exchange translation effects relative to the US dollar.

By business line, Credit Services delivered organic revenue growth of 6%, Decision Analytics delivered organic revenue growth of 1%, and there were declines in Marketing Services of 1%, and in Consumer Services of 12%.

North America

Total revenue growth in North America was 1%, while organic revenue was down 3%. The difference relates primarily to the acquisition of Passport (acquired November 2013).

We delivered a strong performance in Credit Services, where organic revenue increased by 7%. The environment for both consumer and business lending continues steadily to improve, with increased levels of credit prospecting and origination activity helping both our consumer and business information operations. There were also strong contributions from our two key verticals of automotive and healthcare. Specifically in healthcare, we made further gains as we expanded our client footprint with new client wins in the quarter and as we grow our relationships with existing clients. Decision Analytics was up 2% organically, and while there was strength in credit risk management software, there was some drag from volume reductions relating to certain authentication contracts. A decline in Marketing Services of 1% was driven principally by weakness in legacy product lines, offset partially by a very strong performance from our new cross-channel marketing platform. We made further commercial progress with the cross-channel marketing platform, securing a number of significant new client wins in the quarter, which we will on-board over the coming months. As expected, Consumer Services declined, with organic revenue down 18%. The new Experian FICO product was launched to consumers on 26 December 2014. We held back marketing expenditure in advance of this launch, and this had a knock-on effect on performance in the quarter.

Latin America

At constant exchange rates, total and organic revenue in Latin America was up 5%.

We delivered growth in Credit Services of 6%. In Brazil, we saw strong growth in business information driven by new client wins and a good market reception for new product features. And while consumer information recovered, trading continued to be fairly subdued, reflecting macroeconomic conditions in Brazil. We also saw good performances from our credit bureaux in other Latin American markets. In Decision Analytics we saw growth in Brazil, driven by scoring and analytics, but this was offset by declines elsewhere in the region due to a strong prior year comparative. Overall, organic revenue in Decision Analytics declined by 4%. Marketing Services was down 6%, reflecting weakness in prospecting and mailing data.

UK and Ireland

At constant exchange rates, total revenue growth for UK and Ireland was 5% and organic revenue growth was 3%. The difference related to the acquisition of a small credit data pre-qualification business.

We continue to see gradual improvements in Credit Services and Decision Analytics, both of which delivered organic revenue growth of 3%. In Credit Services, we saw good momentum in both consumer information and business information, as we roll out new products, partially offset by moderation in the payments channel. In Decision Analytics, we have seen good demand for credit risk management software, and strength in identity management and fraud prevention, including a growing contribution from 41st Parameter. Marketing Services delivered growth of 2%, with a strong performance from the cross-channel marketing platform, with further new business wins during the quarter. Consumer Services delivered growth of 6% reflecting further growth in the direct-to-consumer channel and an increased contribution from the affinity channel.

EMEA/Asia Pacific

At constant exchange rates, total and organic revenue for EMEA/Asia Pacific was down 1%.

Credit Services performed well, up 4%, with steady growth across our European markets and strength in Asia Pacific. Decision Analytics was down 3%, largely due the timing of a large annual software contract, which in the current financial year will be reflected in Q4. Excluding this item, underlying trends were strong for both credit risk management and fraud prevention. Marketing Services declined by 4% due to the ongoing impact of the client in-housing event that has been previously flagged.

Financial position

Other than as disclosed, there has been no change since 31 December 2014 to Experian’s general financial position, which remains strong. At 31 December 2014, net debt/EBITDA on a rolling 12 month basis was below 2.0x, in line with our previous commitments.

Future events

We will hold an investor seminar on 28 January 2015 in London, and will release our full year results on 12 May 2015.


Nadia Ridout-Jamieson Director of Investor Relations +44 (0) 2030424215
James Russell Director of Corporate Communications  
Rollo Head   +44 (0) 2072513801
Jenny Davey    


This announcement is available on the Experian website at There will be a conference call today to discuss this update at 9.00am (UK time), which will be broadcast live on the website with a recording available later.

All financial information in this trading update is based on unaudited management accounts. Certain statements made in this trading update 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.

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 2014, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.

We employ approximately 16,000 people in 39 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 March 31, 2014, was US$4.8 billion.

To find out more about our company, please visit or watch our documentary, ‘Inside Experian’.