Multinational credit reporting company Experian reported a revenue drop of 2% in the UK and Ireland in the 2020/21 financial year, dropping from $769m (£544m) to $749m (£530m).
This dip was partly put down to reductions in UK bank consumer lending and reduced demand for software investment. However, it did see growth in the region in the final quarter of the 2020/21 financial year, delivering an improved margin performance in the second half of the year when compared to the first.
In addition to this, its revenues in Latin America went down to $625m (£442m) from $732m (£518m). The company put this down to its weaker performance in Spanish Latin America due to parts of the region being especially hard hit by the Covid-19 pandemic. It does, however, say that it’s seen “evidence of recovery” that will help it resume its strategic ambitions.
Despite this, the firm overall reported an actual growth rate in revenue of 4% - going from $5.1bn (£3.6bn) to $5.3bn (£3.7bn). This increase was driven by its North America - where its total revenue went from $3.2bn (£2.2bn) to $3.5bn (£2.4bn) - and Europe, the Middle East and Asia (EMEA)/Asia Pacific - where it went from $431m (£305m) to $468m (£331m) - regional operations.
Most of the money generated came from its business-to-business segment, making $4bn (£2.8bn) in 2020/21. The firm’s most successful product was its data work, making it $2.8bn (£1.9bn) that year.
Experian’s chief executive Brian Cassin said: “I want to pay tribute to my Experian colleagues whose incredible hard work and commitment this year has steered our business successfully through challenging times. The 2020/21 financial year was a year when we unlocked the power of data for consumers, clients and communities across the world, using our skills and capabilities to help governments and societies to respond to the crisis, hospitals to marshal resources, governments to support businesses, and charities to care for the most vulnerable. Data will also be a key driver of economic growth as the recovery gathers pace and we will be a leading champion in using data to create a better tomorrow.”
Both the firm’s benchmark operating cash flow and free cash flow went up in the 2020/21 financial year. Its operating cash flow went from $1.2bn (£849m) to $1.4bn (£991m), with its free cash flow going from $774m (£548m) to $1.1bn (£779m).
Experian’s net debt and investment went down in the 2020/21 financial year. Its net debt went from $3.89bn (£2.75bn) to $3.82bn (£2.7bn), while its net investment changed from $1.2bn (£849m) to $881m (£623m).