Credit checker weathers Covid storm as revenues fall only 2%

CREDIT checking giant Experian has been hit by its exposure to North America and Brazil, two places hurt most by Covid-19, but figures today suggest it has managed the crisis well.

Revenues fell by just 2% in the three months to June, though they were down 15% in the UK and Ireland as clients tightened credit policies and lending decreased.

Experian said: “We also experienced delays in client purchasing decisions for software, a near total shutdown in the automotive market, and marketing data revenue was also impacted as advertisers cut back on marketing spend.”

Nicholas Hyett at Hargreaves Lansdown said: “Experian is caught between two competing forces. On the one hand demand for data-driven decision making has never been stronger, and Experian is right at the heart of that.

“However, many of the group’s customers are very cyclical. Lending has tailed off in some markets as consumers batten down the hatches ahead of any economic storm.”

HSBC was more positive, noting that company guidance for growth in the next quarter is between 0% and 5%.

“If anything, this is far more resilient than we or many in the market anticipated,” said the bank.

“The company is holding its cost base, and with the power of hindsight, not cutting costs in April was the right decision.”

The shares were steady at 2843p, which values the business at £26 billion.