Experian announced a 34% increase in pre-tax profit for the year, but the larger credit data company gave a softer outlook for revenue growth, as demand for lending data is likely to decline as rising inflation hits consumer spending.
The Dublin-based company forecast revenue growth of 7% -9% for the year ending March 2023.
Weaker demand for mortgage data due to lower consumer refinancing activity affected growth forecasts by 150 basis points.
While aggregate demand for credit reports and data is rising as the global economy emerges from the pandemic, consumer spending in all of Experian’s key markets – North America and the United Kingdom – has slowed due to the relentless rise in prices of everything from fuel to food, reducing the demand for credit data.
The company’s share is down 3.4%.
Source: Capital
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