Dublin-based Experian profit hit by volatile currency rates

CHARLIE TAYLOR

Dublin-headquartered credit data company Experian has said its third quarter sales growth was wiped out due to volatile currency rate movements.

The firm saw total revenues decline by 3 per cent at actual exchange rates in the three months to the end of December as the strength of the dollar impacted on Latin American sales.

The company, which provides credict checks to banks, recorded a 6 per cent rise in organic revenue growth for the third quarter and left its full-year guidance unchanged.

Experian, which reports in US dollars, said if current rates prevail, it expects operating profit will likely decline by 11 per cent for the year ending March 31st. It also forecast a 3 per cent decline in profit for fiscal 2017.

"Organic revenue growth was 6 per cent in the third quarter as we continue to deliver on our five strategic priorities. Growth was balanced, with all four regions contributing within our targeted mid-single digit range," said chief executive Brian Cassin.

“Looking ahead, our guidance for the full year is unchanged. While foreign exchange will be a headwind, at constant currency we expect organic revenue growth in the mid-single digit range, to deliver stable margins and to see further progress in Benchmark earnings per share,” he added.

Experian, which is listed on the FTSE-100, employs over 17,000 people in 38 countries worldwide.

The company recently sold two of its analytics divisions in a deal valued at up to $51.5 million as it looks to maintain its focus on the areas of credit services and decision analytics. Traffic measurement website Hitwise, which was acquired by Experian for $240 million in 2007, was sold to the LA-based digital marketing company Connexity. In a simultaneous transaction, Connexity's's private equity parent, Symphony Technology Group bought Experian's Simmons division.

At constant exchange rates, total and organic revenue for UK and Ireland was up 4 per cent in the third quarter with credit services delivering growth of 5 per cent and decision analytics-related services up 8 per cent.

Latin American revenues increased 7 per cent in the three months to the end of December and were up by 7 per cent in EMEA/Asia Pacific and 6 per cent in North America.

Shares in Experian, which is due to release full-year results in May, were up 1 per cent in early trading in London despite the gloomy trading update.