16 January 2024
If you are covering Experian’s latest financial results, please find below a comment from Tom Gilbey, equity research analyst at Quilter Cheviot:
“Experian delivered solid sales growth, with the company announcing a small beat compared to market expectations. While the macroeconomic picture remains uncertain, and smaller clients and fintechs are scaling back, Experian has benefitted from having good exposure to large, international clients.
“While North America and UK/Europe were strong, Latin America continues to be the stand out performer, with growth of 13%in the quarter. Experian will continue to benefit from favourable secular tailwinds in the growing use of consumer and business data, and emerging economies will see strong demand. Brazil in particular has strong growth potential and now sees 86m users of Experian’s membership, and 100m for the region.
“The business also continues to reinvest in itself, driving both organic and inorganic growth, allowing it to benefit from data monetisation. The share price indicates the business is a little on the expensive side for investors, but with high barriers to entry and a strong market position, this is to be expected for what is a high quality company.”
