Market report: Experian bounces back as it shrugs off $20m T-Mobile hack costs

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While $20 million (£13.2 million) is a lot of money to most people, for Experian it’s a drop in the ocean.

That’s how much the credit checker has had to fork out in “one-off costs” to deal with last month’s hack which exposed the details of 15 million US customers who applied to use its service through T-Mobile.

Experian shares slumped on the day of the revelation but it hasn’t taken long for investors to brush off concerns about the potential consequences — since then, the shares have risen 7%, not including today’s 65p, or 5.9%, surge to 1169p.

The company did, however, reveal that it has received “a number of class actions” and warned that it was too early to predict the effect of the regulatory and government investigations or legal action. 

It is providing affected customers with two years’ free credit monitoring and identity-protection services.

It came as Experian unveiled first-half earnings of $570 million, down 8% on last year due to currency movements but slightly ahead of analyst forecasts. It also extended its share buyback by $200 million.

Experian was the top riser on the FTSE 100, which continued its edgy performance, edging down 2.37 points to 6292.79.

Miners led the decline as industrial-metals prices tumbled, inflicting more pain on beaten-up Anglo American, 32.75p, or 6.4%, lower to 483.25p, and battered Glencore, down 3.25p  to 106.45p.

Analysts at Barclays painted a gloomy picture of the outlook for miners, saying: “The last five years have now been the worst period of performance since 1966. Looking forward it is hard to see what might pull the sector out of its tailspin.”

Investors shelved shares in the supermarket groups after Deutsche Bank cut its rating on Tesco from buy to hold and on Morrisons from hold to sell. The former fell 4.95p to 173.6p, while the latter dropped 5.2p to 158.6p. Speedy Hire jumped 2.75p to 31.75p as the tool-hire firm stuck by its full-year targets at the halfway stage after two profit warnings earlier this year.

Engineering-software firm Aveva Group rose 79p to 2085p after nudging its dividend up to 6p a share, even as half-year revenues slumped.

Meanwhile, toy maker Hornby, which has made a Spectre Scalextric for the new James Bond movie, reversed 1.01p to 95.99p on AIM after warning it expects to make a £2 million annual loss.

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November 10, 2015 |
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