19 November 2008

Highlights

  • Good revenue, profit and cash flow progress, reflecting balance and diversity of the Group.
  • Total revenue growth of 13% at actual exchange rates to US$2,017m. Revenue from continuing activities up 11% at constant exchange rates to US$1,987m. Organic revenue growth of 3%.
  • Total EBIT growth of 8% at actual exchange rates to US$476m. Continuing EBIT up 8% at constant exchange rates.
  • EBIT margin of 22.8% from continuing activities (2007: 23.0%), excluding FARES contribution.
  • Profit before tax of US$318m. Benchmark profit before tax of US$416m, up 9%.
  • Basic EPS of 25.5 US cents. Benchmark EPS growth of 8% to 30.7 US cents.
  • Strong cash conversion of 83%, in traditionally weaker half of year.
  • Strong performances in Latin America, Consumer Direct and Decision Analytics offset market challenges in US and UK Credit Services.
  • Cost efficiencies ahead of schedule with US$29m contribution in the half. Additional savings identified; target raised to US$130m annualised.
  • First interim dividend increased by 4% to 6.75 US cents per share.

John Peace, Chairman of Experian, said:
“Experian performed well in the first half, delivering good revenue, profit and cash performances, even though market conditions were exceptionally challenging. The Group has strengthened its market position, and is well placed to grow through the current global economic cycle.”

Don Robert, Chief Executive Officer of Experian, said:
“Our business continues to perform well. We are adapting to market challenges, which we expect to persist into next year. We are directing the organisation towards emerging countercyclical opportunities and we are further addressing our cost base. Looking ahead, we expect organic revenue growth for the third quarter to be similar to that in the first half. For the year as a whole, our objective remains to broadly maintain margins and to grow profits, while continuing to position the business for long term success.”

Enquiries:

Experian
Don Robert Chief Executive Officer 44 (0)20 3042 4215
Paul Brooks Chief Financial Officer
Nadia Ridout-Jamieson Director of Investor Relations
Alex Brog Head of Media Relations
Finsbury
Rollo Head 44 (0)20 7251 3801
Don Hunter

There will be a presentation today at 9.30am (UK time) to analysts and investors at the Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live on the Experian website at www.experianplc.com and can also be accessed live via a dial-in facility on 44 (0)20 8322 2180. The supporting slides and an indexed replay will also be available on the website later in the day.

There will be a conference call to discuss the results at 3.00pm today (UK time), which will be broadcast live on the website with a recording available later. All relevant Experian announcements are available on www.experianplc.com.

Experian will update on trading on 15 January 2009, when it will issue the Interim Management Statement in respect of the Third Quarter.

See Appendix 2 for definition of non-GAAP measures used throughout this announcement and Appendices 3 to 6 for reconciliations of certain of these non-GAAP measures.

The reported revenues and profits have been restated to reflect the treatment of transaction processing activities in France as a discontinued operation. In addition, there have been a number of small changes to the Group’s four business segments reflecting evolving business profile and changes in the reporting structure of recent acquisitions. Notes 3 and 8(b) detail these changes and their impact on the financial reporting.

Roundings

Certain financial data have been rounded within this announcement. As a result of this rounding, the totals of data presented may vary slightly from the actual arithmetic totals of such data.

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward looking statements.

View the full press release in PDF format.

Top