elenathewise / Depositphotos
Experian plc (LON:EXPN) reported third quarter organic revenue growth, excluding the impact of exchange rates, of 6%. That was in line with company expectations and reflected growth across all business segments and geographies.
Latin America was the standout region, with organic growth of 16%. That was driven by a 40% improvement in Consumer Services revenue as free memberships in Brazil rose to 78m.
Both North America and UK & Ireland saw a continued tightening of credit criteria, but the bulk of lenders were still extending credit. UK & Ireland suffered from October’s lending market disruption, which contributed to an 8% decline in Consumer Services organic revenue.
Get The Full Walter Schloss Series in PDF
Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Q4 2022 hedge fund letters, conferences and more
Full year expectations remain unchanged, for organic revenue growth of 7-9% and a modest improvement in margins.
Matt Britzman, Equity Analyst at Hargreaves Lansdown
“Experian posted another robust set of results in today’s trading update, showing off some of the benefits of the business model and range of products on offer. As wider economic conditions look somewhat bleak, Experian’s products that help lenders and borrowers should hold up relatively well.
Lenders are tightening criteria and that’s where Experian’s suite of tools are an invaluable source of information, at the same time consumers are continuing to look for credit on good terms to keep spending.
There’s certainly a worry about how long that spending trend can continue and that’s especially true if conditions for consumers’ real wealth worsen over the next few quarters. The US mortgage segment is a prime example, where performance suffered given the challenges facing both buyers and lenders as mortgage costs soar.
We remain supportive of the trajectory at Experian, it’s products and services should hold up in a range of economic conditions and that’s feeding through to steady performance, with a full year outlook that remains on track.”