Experian : Half-yearly financial report

6 November 2014 - Experian, the global information services company, today issues its half-yearly financial report for the six months ended 30 September 2014.

General highlights

• Good progress in the first half with total revenue growth from continuing activities of 5%, Benchmark EPS growth of 6%, operating cash flow growth of 17% and first interim dividend up 7%.
• New agreement with FICO, the score most recognised by consumers in the US, to create highly compelling offers under the Experian.com brand - an important step in our strategy to position Experian.com as the flagship brand for US consumers.
• Encouraging performances in parts of the portfolio. Good growth in North America Credit Services. Sequential improvement in Brazil, returning to growth in Q2 after World Cup.
• Passport and 41st Parameter acquisitions growing strongly.
• Deleveraging faster than anticipated given strong operating cash flow performance.

Financial highlights

• At constant exchange rates, total revenue growth from continuing activities was 4%. There was no change in organic revenue. Total revenue from continuing activities up 5% at actual exchange rates. Total revenue of US$2.4bn (2013: US$2.3bn).
• Total EBIT from continuing activities of US$627m, up 3% at constant exchange rates. Total EBIT from continuing operations was also US$627m up 3% at actual exchange rates.
• EBIT margin from continuing activities of 26.2%, up 60 basis points before the impact of foreign exchange movements and acquisition investment, down 40 basis points year-on-year.
• Benchmark profit before tax of US$590m, up 3% at actual rates. Profit before tax of US$534m (2013: US$480m).
• Benchmark EPS of 45.1 US cents, up 6% at actual rates. Basic EPS of 41.8 US cents (2013: 34.2 US cents).
• Strong cash flow with 95% conversion of EBIT into operating cash flow (2013: 84%), and growth in operating cash flow of 17%.
• First interim dividend of 12.25 US cents per ordinary share, up 7%.

Brian Cassin, Chief Executive Officer, commented:

"We have delivered a good earnings result for the first half, driven by strength in North America Credit Services, a return to growth in Brazil and a good all-round performance in the UK. Our cash performance was particularly strong which has allowed us to reduce debt ahead of schedule and we are pleased to announce an increase in our first interim dividend of 7%.

"For the second half, we see near term organic revenue growth as subdued, improving as we exit the year. For the year, we expect to maintain margins (at constant currency), to deliver further good progress in Benchmark earnings (at constant currency) and we now expect to exceed 95% cash flow conversion.

"We have shared our five key strategic priorities today for sustaining attractive rates of earnings growth and superior returns. Taken together, we believe that these actions will allow us to build an even more successful business in the years to come and to deliver significant value to our shareholders."

Contacts

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 2015, when it will issue an Interim Management Statement.

See Appendix 1 and note 5 to the Group financial statements for definitions of non-GAAP measures used throughout this announcement.

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 pages 17 and 18 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
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

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 2014 was US$4.8 billion. Experian employs approximately 16,000 people in 39 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

View the full press release in PDF format.