Experian 2015 financial results: investing in growth whilst returning nearly US$1bn in dividends and share repurchases during the year

LONDON, 16-May-2016 — /EuropaWire/ — Experian, the global information services company, today issues its full year financial results for the twelve months ended 31 March 2016.

General highlights

• Delivering on our strategy:
  – improved growth momentum;
  – strength in Credit Services and Decision Analytics;
  – successfully repositioning North America Consumer Services;
  – resilience in Brazil.
  
• Delivering on our capital framework: investing in growth whilst returning nearly US$1bn in dividends and share repurchases during the year.
• Definitive agreement post year-end to acquire CSIdentity Corporation.
• Total revenue from continuing activities was US$4,477m, with both total and organic revenue at constant exchange rates up 5%. At actual exchange rates, total revenue from continuing activities fell by 4% reflecting foreign exchange headwinds during the period. Total revenue was US$4,550m as the Group exited a number of non-core businesses in the year.
• EBIT from continuing activities was US$1,195m, up 5% at constant exchange rates. At actual exchange rates, EBIT from continuing activities was down 6%. Total EBIT was US$1,210m.
• EBIT margin from continuing activities was stable at constant exchange rates. The impact of foreign exchange movements reduced EBIT margin at actual exchange rates by 60 basis points to 26.7%.
• Benchmark profit before tax was US$1,136m, up 3% at constant exchange rates. Profit before tax was US$1,027m at actual exchange rates (2015: US$1,006m).
• Cash flow conversion of 105%. Net debt decreased by US$194m, with net debt to EBITDA ratio remaining at 1.9 times.
• Benchmark EPS was 89.1 US cents, up 5% at constant exchange rates and down 6% at actual exchange rates. Basic EPS was 78.6 US cents (2015: 79.0 US cents).
• Second interim dividend of 27.5 US cents per ordinary share, to bring the total for FY16 to 40.0 US cents per share, up 2% reflecting underlying strength, notwithstanding the foreign exchange headwinds.
• We expect share repurchases of US$400m in FY17.

Brian Cassin, Chief Executive Officer, commented:

“We have made significant progress against our strategic objectives over the past year. We have returned Experian to organic revenue growth within our target range and driven greater efficiencies in our business, whilst rigorously applying our robust capital framework.

As we look forward, we’re investing in a range of initiatives which will help us deliver another year of good growth, within our target range of mid single-digit organic revenue growth, with stable margins and further progress in Benchmark earnings per share.”
Contacts

Experian
Brian Cassin Chief Executive Officer +44 (0)20 3042 4215
Lloyd Pitchford Chief Financial Officer
Nadia Ridout-Jamieson Director of Investor Relations
James Russell Director of Corporate Communications

Finsbury
Rollo Head +44 (0)20 7251 3801
Jenny Davey

FULL REPORT