Profits for Experian are rising due to increased demand for money-saving tools

Credit data firm Experian has seen its revenue increase as it revealed that more customers are using analytics to show the impact of higher utility bills on households.

The company reported a 7% increase in current revenues for the first half of the financial year, from US$3 billion (£2.5 billion) last year to US$3.2 billion this year (£2.7 billion). .

The FTSE 100-listed company, which conducts credit checks for businesses and consumers, said sales were boosted by new products, new customers and expanding customer base.

It also reported rising profits, with benchmark profits reaching US$881 million (£738 million), up 8% from US$813 billion (£681 million) this time last year.

Experian said it plays a “key role” in helping communities deal with cost-of-living pressures because it gives people and businesses the tools to manage their finances and save money.

In the UK, recent financial volatility has led to some changes in customer behavior, the group said.

Lenders are more focused on risk-based analysis and adjusting their criteria for new customers, indicating they are more wary of who they lend to and what risks they take.

Among its utility and energy clients, Experian notes that it has seen increased demand for analytics that reveal the impact of energy price effects on households.

The company, which employs more than 21,000 people in 30 countries, said it now reaches 145 million free consumer members in its three largest markets, nearly a fifth more than last year.

Members can use the service to check their credit score and receive credit reports, as well as compare cards and loans.

Experian CEO Brian Cassin said: “We delivered another strong performance in the first half driven by new products, new business wins and consumer expansion.

“While we expect economic conditions to be more difficult for the remainder of the year and we see some stronger comparables in the third quarter, our full year outlook remains unchanged.

“As many households and businesses enter a difficult period of rising costs in the coming months, we will also continue our mission to help millions of people improve their financial health and save money.”

Analysts noted that Experian is well positioned to weather economic storms, in part because people are likely to be stricter with their finances during tough times.

Matt Britzman, equity analyst at Hargreaves Lansdown, said: “This has been a decent half for Experian, which has managed to maintain momentum despite consumers and businesses facing higher inflation and rising costs.

“However, the threat of a global downturn remains, but with consumers working through their savings and looking to borrow money to fund their lifestyles, Experian is in a position to get some relief there.

“There are already signs that lenders want to do extra due diligence when making loans. Services such as extra affordability and customer segment analysis have led to increased demand.”

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