Experian sees profit margin at top end of forecast

(Reuters) -Credit data company Experian forecast its core profit margin for the 2025 fiscal year towards the upper end of its 30-50 basis point guidance, but kept its annual organic revenue growth outlook unchanged.

Half-year revenue rose 6%, but the company maintained its annual organic revenue growth outlook of 6%-8% for fiscal year 2025, ending March 31 next year.

Analysts were disappointed by the absence of an increase in revenue guidance. Experian’s shares fell as much as 4.6% and were down 4.4% at 3,694 pence by 1244 GMT. They have risen about 42% since early 2023 and hit an all-time high last month.

Demand for new products along with Experian’s efforts to expand its footprint also drove growth, despite a subdued credit supply backdrop, the company said in a statement on Wednesday.

Interest rate cuts in the U.S. and the UK in the past few months could help to stimulate mortgage lending, boosting

demand for Experian’s fraud and identity products, which assess credit risk and prevent fraud.

The company’s Latam region, which is the second largest contributor to revenue after North America, had weaker growth in the first half of the year, due to macroeconomic uncertainty and higher interest rates in Brazil. Also, severe flooding in the south of Brazil during the first quarter affected some clients.

Growth in Brazil is expected to stay at the current levels during the second half of the year, CEO Brian Cassin said on an analyst call.

The Dublin-headquartered company agreed to buy Brazilian cyber security firm ClearSale in October, to enhance its identity and fraud (ID&F) business in Latin America’s largest economy.

(Reporting by DhanushVignesh Babu and Yamini Kalia in Bengaluru; Editing by Rashmi Aich and Jane Merriman)