Experian (EXPN) Q1 2025 TU earnings summary

Executive summary

• Organic revenue growth in Q1 was 7%, with total group revenue up 8% at constant currency and 7% at actual rates, reflecting strong execution of growth strategy and consistent performance across regions.

• Consumer Services achieved double-digit organic revenue growth, with the installed free membership base exceeding 185 million.

• North America led with 8% organic revenue growth, while Latin America grew 5%, UK&I 2%, and EMEA Asia Pacific 7%.

• Strategic focus on diversifying revenue streams, expanding product offerings, and enhancing platforms across all regions.

• Growth expectations for the full year remain unchanged, targeting 6-8% organic revenue growth and 30-50 basis points of margin accretion at constant exchange rates.

Financial highlights

• B2B globally grew by 5%, B2C by 11%.

• Acquisitions contributed 1% to growth; exchange rates were a 1% headwind due to Brazilian real depreciation.

• North America contributed 66% of group revenue, delivering 8% organic revenue growth; Latin America 16% of revenue with 5% organic growth; UK and Ireland 12% of revenue with 2% organic growth; EMEA and Asia Pacific 6% of revenue with 7% organic growth.

• U.S. mortgage profile revenue grew 37% despite a 12% volume decline, driven by FICO price increases.

• Total global organic revenue growth was 7% year-over-year for the quarter ended 30 June 2024.

Outlook and guidance

• Full-year guidance and medium-term outlook remain unchanged; each quarter expected to deliver 6%-8% organic revenue growth.

• Data breach activity contributing about 1% to group growth per quarter; continued elevated activity could keep results at the higher end of guidance.

• Brazil expected to return to double-digit growth from Q2 as flood impacts subside and contract renewals occur.

• Margin guidance unchanged, with confidence in delivering enhanced margin progression within the revenue range.

• Full-year guidance maintained for 6-8% organic revenue growth and 30-50 basis points of margin accretion at constant exchange rates.