Experian Share Price Rallied 6.04% on the Upbeat H1 Results

The Experian plc (LON: EXPN) share price rallied 6.04% after releasing its earnings results for the first half of its fiscal year, representing the six months to 30 September 2023. Experian's H1 performance has been marked by steady revenue growth. 

In the first quarter (Q1), the company achieved an impressive 5% organic revenue growth, which was mirrored in the second quarter (Q2) with another 5% organic revenue growth.

The multinational data analytics and consumer credit reporting company headquartered in Dublin, Ireland, noted that its total revenue growth from ongoing activities was 5% at constant exchange rates and an even stronger 6% at actual exchange rates.

Experian's Consumer Services division reported remarkable growth, with organic revenue up by 6%. The company now proudly serves 178 million free members, marking a substantial increase of 21 million members compared to the previous year. The growth reflects Experian's commitment to providing valuable services to a wider audience.

Experian's Business-to-Business (B2B) segment experienced solid organic revenue growth of 4%. The growth can be attributed to the superior quality of data, the successful launch of new products, and effective business development strategies.

Experian's success in H1 was not limited to a specific region. All regions made positive contributions, with Latin America leading the way with double-digit growth. North America also performed well, and there was notable improvement in the EMEA (Europe, Middle East, and Africa) and Asia Pacific regions. 

The company reported a Benchmark EBIT (Earnings Before Interest and Taxes) from ongoing activities that rose by 6% to US$929 million. The Benchmark EBIT margin stood at 27.2%, showing a 20 basis point increase at constant currency rates and remaining stable at actual exchange rates.

Experian maintains a robust financial position with a net debt to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio of 1.8x. 

Experian reported good progress in earnings per share (EPS), with Benchmark EPS up 8% at both constant and actual exchange rates. Basic EPS showed remarkable growth, increasing by 86%.

The company achieved a strong cash flow conversion rate, with a benchmark operating cash flow conversion of 77%. Experian's statutory profit before tax amounted to US$763 million, a remarkable 48% increase compared to the previous fiscal year. 

Experian share price. 

The Experian share price rallied 6.04% to trade at 2842.0p from Tuesday’s closing price of 2680.0p.