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Experian sees annual revenue growth on steady demand
Global Banking & Finance Review®
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(Reuters) – British credit data firm Experian Plc said on Wednesday it expects its annual organic revenue to grow between 4% and 6% on the back of steady demand from
(Reuters) – British credit data firm Experian Plc said on Wednesday it expects its annual organic revenue to grow between 4% and 6% on the back of steady demand from businesses and consumers.
Analysts were expecting the company to forecast a revenue growth of around 5.8%, according to company-compiled estimates.
Experian has benefited as Britain’s lenders seek more data on the finances of potential and existing customers amid still-high inflation.
The company’s key customers include banks, non-traditional lenders and insurance providers, which use its credit reports and scores to analyse and make decisions around credit risk, fraud prevention and lending terms.
For the year ended March 31, Experian’s profit before tax fell 19% to $1.17 billion on organic revenue growth of 7% to $6.59 billion.
(Reporting by Eva Mathews in Bengaluru; Editing by Subhranshu Sahu)
Organic revenue growth refers to the increase in revenue generated from a company's existing operations, excluding any revenue from acquisitions or mergers. It reflects the company's ability to grow its business through its own resources.
Credit risk is the possibility of loss due to a borrower's failure to repay a loan or meet contractual obligations. It is a key consideration for lenders when assessing the likelihood of default.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or Producer Price Index (PPI).
Credit reports are detailed records of an individual's credit history, including information about credit accounts, payment history, and outstanding debts. They are used by lenders to assess creditworthiness.
Lending is the act of providing funds to borrowers with the expectation of repayment, usually with interest. It is a fundamental function of financial institutions like banks.
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