Revenues up 5% at credit-checking company Experian

Information services group Experian has reported an 11 per cent rise in pre-tax profits for the first six months of the year.

The company announced revenues of $2.93 billion on a constant currency basis, up 5 per cent compared to the $2.34 billion recorded for the same period a year earlier.

For the six months ended September 30th, the group posted a pre-tax profit of $534 million, up from $480 million in the year-earlier period.

Operating cash flow rose 17 per cent. The Dublin-based firm raised its interim dividend to 12.25 cents a share from 11.50 cents.

US revenue increased 5 per cent to $1.21 billion on the back of a 22 per cent jump in credit services. Income in the UK and Ireland was up 14 per cent to $498 million.

Experian’s net debt to earnings before interest, taxes, depreciation and amortisation ratio was 2.17, the group said.

"We have delivered a good earnings result for the first half, driven by strength in North America Credit Services, a return to growth in Brazil and a good all-round performance in the UK. Our cash performance was particularly strong which has allowed us to reduce debt ahead of schedule and we are pleased to announce an increase in our first interim dividend of 7 per cent, said chief executive Brian Cassin.

“For the second half, we see near term organic revenue growth as subdued, improving as we exit the year. For the year, we expect to maintain margins, to deliver further good progress in benchmark earnings and we now expect to exceed 95 per cent cash flow conversion,” he added.