Robust US mortgage market conditions were a boon to credit data firm Experian in the first half of 2020.
The Dublin-based credit check company – largest in the world – posted a better-than-expected 2% increase in organic revenue, with earnings of $648 million for the half-year period (before interest and taxes). The results surpassed the $630 million estimated by analysts.
“Against the backdrop of the global pandemic we delivered a resilient performance in H1, with organic revenue growth of 2% and modest progress in constant currency EBIT,” Experian CEO Brian Cassin said. “Q2 organic revenue growth was 5%, at the top end of our guidance range.”
Cassin said that the increase was mainly driven by growth from North America (7%) and Brazil (5%) which “offset COVID-19 related declines in other territories.”
“The standout performance across the group was consumer services, where we now have nearly 100m free consumer memberships,” he said.
Some of that growth was due to rising demand for data and analytics during the pandemic, according to Experian. The firm said that demand for its Ascend platform, which is now available in nine countries, has bolstered its operating profit – adding a cumulative total contract value of $347 million.
The company, which runs credit data checks for consumers and helps lenders in managing credit risks, anticipates a 3-5% growth in organic revenue growth for Q3.
“While COVID-19 has significantly impacted the macroeconomic environment, it has also catalyzed trends which play to Experian’s strengths,” Cassin said. “Innovation is our bedrock and has driven success for us in the marketplace. Once the crisis abates, we believe we will be strongly positioned to take advantage of the secular growth trends, and we are excited by the opportunities we see ahead.”