Experian reports fall in full-year profit | Fin24

Experian reports fall in full-year profit

May 12 2015 13:47

Brasilia - Experian, the world's biggest credit data company, reported a 4% fall in pre-tax profit, below analysts' expectations, hurt by the weakness of the Brazilian real and other adverse foreign exchange moves.

Profit before tax fell to $1bn for the year ended March 31, compared with $1.05bn a year earlier. Analysts on average expected a pre-tax profit of $1.2bn.

The FTSE-100 company, which is best known for running consumer credit checks for banks, landlords and retailers, said on Tuesday it would pay a second interim dividend of 27 cents per share resulting in a full-year dividend of 39.25c.

Revenue for the period rose less than 1% as Experian continued to witness sluggish growth in Latin America, particularly in Brazil.

Total revenue from continuing operations rose to $4.8bn, in line with analysts’ expectations, compared with $4.7bn a year earlier.

Exchange rate movements decreased reported revenue by $103m, the company said.

"Whilst uncertainty remains and we continue to invest in the brand and products to move the business forward, we believe we have passed the peak rate of decline," Experian said.

Experian along with two other major credit reporting agencies, Equifax Inc and TransUnion, generate credit reports and scores based on consumers' borrowing and payment habits, including bankruptcies and court judgments.

brazil  |  financial services  |  earnings reports


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