Experian Projects 6-8% Revenue Growth Despite Economic Challenges
By Simone Lobo
(Reuters) -Credit data company Experian said on Wednesday its annual organic revenue growth would be along expected lines, relying on its data services such as health payments, automotive sales and customer profiling to shield it from macroeconomic uncertainty.
The company has made attempts to expand beyond credit reporting services, to evade subdued credit demand in its largest market, the U.S.
It has spent $1.2 billion in acquisitions to bulk up services such as fraud prevention in growing markets like Australia, New Zealand and Brazil.
"Our strategy has been to position our business to take advantage of growth opportunities, enabling us to outperform underlying credit conditions," CEO Brian Cassin said on a post-earnings call with analysts
Experian posted revenue of $7.51 billion and operating profit of $2.11 billion for the fiscal year ended March, both in line with analysts' average estimate in a company-compiled poll.
"The results again highlight Experian's ability to perform strongly even in a sideways lending environment given their ongoing focus on expanding their addressable markets.", J.P. Morgan analysts said in a note.
The company said it expects organic revenue growth of 6% to 8% this fiscal year, compared with market estimates of 7.6%.
Cassin said its client base was mostly in a wait-and-watch mode due to the uncertain operating environment.
"We haven't seen a notable change in behaviour from clients. I think everybody is looking, watching, waiting."
"We're not expecting a very strong recovery. We're not expecting very strong deterioration either," the CEO said.
The company's shares, which have gained roughly 13% so far this year, fell 1.5%.
(Reporting by Simone Lobo in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh Kuber)
