Experian second-half revenues grow 4 per cent as financial sector 'stabilises'

by Noelle McElhatton, Marketing Direct 16-Apr-09, 12:30

LONDON - Experian, the parent company of direct marketing service brands Experian CheetahMail, Hitwise and Experian QAS, said today it was set for higher annual profits this year as it reported a four per cent rise in second-half revenues.

Experian issued an upbeat trading statement today and said the financial sector, its single biggest market, is stabilising.

However it warned the pace of sales growth may slow over the next three months, as banks, the company's main clients, concentrate on cost cuts. Experian's share price fell 3.7%.

"For the full year we will achieve our objectives of broadly maintaining margins, growing profits and generating strong cash flow, while delivering a good earnings outcome," Experian Chief Executive Don Robert said on Thursday in a trading update.

Experian, the world's biggest credit checking agency, does not break out the performance of its marketing service companies.

Just under half of Experian's business comes from US and UK financial services companies.

Total revenue for the six months to March 31 rose 4 per cent, led by Latin America, where they were up 17 per cent. The US market, Experian's largest, had flat growth of 1 per cent.

The company warned that organic revenue growth could fall in the first quarter, as prospects in the financial sector and wider economy remained uncertain.

"For now, the environment remains fragile, and we continue to be cautious about the immediate outlook for organic revenue growth, which may soften in the first quarter," Experian's Roberts said.