Experian hurt by strength of the dollar

CREDIT information company Experian said a strong dollar halved its revenue growth for the first quarter.

The company said revenue increased 14 per cent for the first quarter at constant exchange rates, but it rose only 7 per cent at actual exchange rates, mainly reflecting the depreciation of the Brazilian real. The currency fell 10 per cent versus the dollar in the three months ending June 30.

Experian, which reports results in dollars, gets about a fifth of its revenue from Latin America.

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“There are two little bits of caution there. One on the exchange rate translation and also flat first-half margins, possibly to do with the eurozone slowdown and recession,” Charles Stanley analyst Tony Shepard said.

The company said revenue from its North America business, which makes up nearly half its total revenue, grew 10 per cent on a modest recovery in lending.

Experian, best known for running consumer credit checks for banks, landlords and retailers, also backed its forecast of organic revenue growth in mid to high single-digits for the full year.

“Looking ahead we are mindful of tougher conditions in some markets, notably in the eurozone,” said CEO Don Robert.