Weaker Brazilian real hits interims at Experian
By Frank Prenesti
Date: Tuesday 13 Nov 2018
(Sharecast News) - A weaker Brazilian real dragged information services company Experian to a half year pre-tax loss, the company reported on Tuesday.
Profit before tax fell 5% to $470m with the reduction primarily from an increase in foreign exchange losses on Brazilian real intra-Group funding of $43m.
Revenue rose 7% to $2.36bn and the interim dividend was lifted by 4% to 14 cents a share.
Experian said the Brazilian weakened by 18% against the dollar.
"Assuming current rates stay the same for the rest of the year, we now expect the full-year earnings before interest and tax (EBIT) headwind to be 5% compared to the full-year 4% headwind we expected (in the first quarter)," the company said.
Brian Cassin said the company had started the year well "as we expand our data assets, introduce new global products and gain momentum in consumer services".
"We now expect full-year organic revenue growth in line with the first half, and at the top of our previous guidance range," he said.
"While foreign exchange translation remains a headwind, we expect EBIT growth at or above revenue growth and strong progress in benchmark earnings per share, all at constant currency."
Recent scandals involving misuse of data, such as the now defunct firm Cambridge Analytica harvesting millions of Facebook user profiles for political ends had resulted in "heightened legislative and regulatory activity" the company said.
"We also note an increasing trend in geopolitical risk given the approaching Brexit deadlines and prospective populist agendas across a number of regions," it added.
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