Data Analytics Group Experian Shares Fall 6% As Company Fears Brazil World Cup
Experian shares fell 6% on Wednesday "after the data analytics group warned about the negative effects of the Brazil World Cup" and a reorganization of its U.S. consumer business, according to Andy Sharman of the FINANCIAL TIMES. Experian "provides credit checking services through its Serasa business in the country, which is hosting the football World Cup next month" -- a month-long party that is expected "to be a boon for companies from drinks producer Diageo and temporary power provider Aggreko." But all major Brazilian cities "have the power to grant local public holidays on the dates that World Cup matches are played -- which will potentially reduce the amount of client activity, and revenue, for Experian’s Serasa operation." Experian CEO Don Robert said, "The country will effectively shut down for commerce -- particularly on days when Brazil plays -- so people will not be making the type of financial transactions that tend to drive our business" (FT, 5/7).