Experian says its pre-tax profit slid to £345.46 million in the fiscal first half

 Experian says its pre-tax profit slid to £345.46 million in the fiscal first half

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  • Experian says its pre-tax profit slid to £345.46 million in the fiscal first half.
  • The consumer credit reporting company posts £1.88 billion of revenue in H1.
  • Experian’s benchmark EBIT declines to £505.36 million in the first six months.

In a report on Tuesday, Experian plc (LON: EXPN) said that its pre-tax profit in the fiscal first half came in lower on a year over year basis. The company, however, posted growth in its organic revenue.  

Shares of the company jumped more than 1.5% in premarket trading on Tuesday but roughly 6% in the later hours. Experian is now trading at £28.73 per share after recovering from a year to date low of £18.82 per share in late March, when the impact of COVID-19 was at its peak. If you’re thinking of investing, you’ll need a broker: here’s a list of the top few to make selection easier for you

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Experian reports £488.77 million of EBIT

Experian reported £345.46 million of pre-tax profit in the first six months of fiscal 2021, versus £362.05 million in the comparable period of last year. Last week, the consumer credit reporting company brought its open banking-powered credit score tool to the United Kingdom.

The FTSE 100 listed company also highlighted its benchmark EBIT (earnings before interest and taxes) to have declined from £505.36 million in H1 of fiscal 2020 to £488.77 million this year in the six months that concluded on 30th September.

In North America, however, benchmark EBIT jumped to £460.11 million versus the year-ago figure of £410.33 million. In the fiscal first quarter, Experian had registered a smaller than expected decline in revenue, as per the report published in July.

In terms of revenue, the Dublin-headquartered company posted £1.88 billion in H1 versus a marginally higher £1.89 billion last year. Experian said that its consumer services division performed exceptionally well in the fiscal first half – and now has close to 100 million free memberships.

CEO Brian Cassin’s comments on Tuesday

CEO Brian Cassin commented on the financial report on Tuesday and said:

“The drivers of growth stemmed largely from North America and Brazil, which offset COVID-19 related declines in other territories. For the third quarter, we expect organic revenue growth in the range of 3% to 5%.”

The Coronavirus pandemic has so far infected more than 1.3 million people in the United Kingdom and caused over 52 thousand deaths.

Experian performed fairly well in the stock market last year with an annual gain of about 30%. At the time of writing, it has a market cap of £26.46 billion and a price to earnings ratio of 51.14.