Trading update, second half

16 April 2009

Experian, the global information services company, today issues an update on trading for the six months to 31 March 2009.

Commenting on the performance of Experian, Don Robert, Chief Executive Officer, said:
“Experian delivered good growth in the second half, driven by strength in emerging markets, good progress on countercyclical initiatives and strong performances in non-financial verticals. At constant exchange rates, total revenue growth for the half was 5%, with organic revenue growth of 4%. For the full year, we will achieve our objectives of broadly maintaining margins, growing profits and generating strong cash flow, while delivering a good earnings outcome.

“As we move into our new financial year, we see some signs of stabilisation in the financial services sector which we hope will translate eventually into improved consumer lending activity. For now, the environment remains fragile, and we continue to be cautious about the immediate outlook for organic revenue growth, which may soften in the first quarter. Our focus remains on harvesting growth opportunities, driving cost efficiencies and delivering strong cash flow.”

Experian plc

% change in revenue year-on-year for the six months to 31 March 2009
Continuing activities only1Total growth %
At actual exchange rates2
Total growth %
At constant exchange rates
Organic growth %
At constant exchange rates
North America 1 1 0
Latin America (10) 17 17
UK and Ireland (23) 5 5
EMEA/Asia Pacific 2 17 5
Experian (6) 5 4
  1. Continuing activities exclude the contributions of the transaction processing activities in France, UK account processing, Loyalty Solutions and other smaller discontinuing activities
  2. Experian is reporting in US dollars

In the six months to 31 March 2009, revenue from continuing activities at Experian increased by 5% at constant exchange rates. Group organic revenue growth was 4% year-on-year (Q3 +5%, Q4 +3%). By principal activity, organic revenue was up 2% at Credit Services, up 3% at Decision Analytics, flat at Marketing Services and up 10% at Interactive. Acquisitions contributed 1% to revenue growth.

Acquisitions and disposals

During the half, Experian disposed of its transaction processing activities in France and made two acquisitions, KreditInform and SearchAmerica.

North America

Revenue in North America increased by 1% in total. Organic revenue was flat. The acquisition of SearchAmerica (in December 2008) contributed the difference.

Organic revenue at Credit Services was down 5%. Mortgage volumes were weak during the half, despite sporadic surges in refinance activity; prospecting volumes remained low, and there was some softness in business information revenue. These declines were partially offset by good growth in account management and collections. At Decision Analytics, organic revenue growth was 2%, reflecting good progress in countercyclical products. Organic revenue at Marketing Services declined by 6%. Conditions for traditional marketing activities became increasingly challenging during the period, while new media continued to perform well. Organic revenue growth at Interactive was 7%. Consumer Direct performed well, while challenges persisted in the lead generation activities.

The global financial crisis has impacted lenders, causing their needs to shift. In view of this, Experian has decided to discontinue efforts to launch a bureau in Canada, since the attractiveness of the opportunity has reduced. Experian will instead target resources at those markets and opportunities where returns will be highest. Experian will continue to invest and develop its Decision Analytics business in Canada.

Latin America

Revenue for Latin America increased by 17% at constant exchange rates. Organic revenue growth was 17%.

Organic revenue at Credit Services rose by 16%. Both business information and consumer information performed well during the half, assisted by strong demand for premium products. While lending conditions in Brazil have clearly tightened, revenue has continued to grow well and there was an increased contribution from countercyclical activities in the half. Decision Analytics and Marketing Services performed well, with organic revenue growth of 37% and 25% respectively.

UK and Ireland

Revenue in UK and Ireland from continuing activities increased by 5% at constant exchange rates. Organic revenue growth was 5%.

At Credit Services, organic revenue was flat, with growth in non-financial verticals such as utilities, public sector and insurance offsetting dislocation within the financial services industry. Organic revenue at Decision Analytics increased by 5%, helped by a number of large deliveries in the period. At Marketing Services, organic revenue was flat, with good performances in new media offsetting weak market conditions for more traditional activities. Interactive grew strongly, with organic revenue growth of 48%, reflecting increased subscriptions.

EMEA/Asia Pacific

At constant exchange rates, revenue in EMEA/Asia Pacific increased by 17%. Organic revenue growth was 5%, with acquisitions, mainly KreditInform in South Africa (acquired in December 2008) and Sinotrust in China (uplift in stake to majority control in March 2008), contributing the balance.

Organic revenue growth at Credit Services was 4%, with solid progress across the region. Organic revenue at Decision Analytics declined by 1%, reflecting a strong prior year comparative. Marketing Services delivered excellent organic revenue growth, up 14%, reflecting strong performances from email services, contact data management and internet marketing intelligence.

Future announcements

Experian will issue its full year results announcement on 20 May 2009.


Paul Brooks Chief Financial Officer +44 (0)203 042 4215
Nadia Ridout-Jamieson Director of Investor Relations  
Alex Brog Head of Media Relations  
Rollo Head   +44 (0)207 251 3801
Don Hunter    


This announcement is available on the Experian website, There will be two conference calls today to discuss this update, at 9.00am and at 3.00pm (UK time). Both will be broadcast live on the website with a recording available later.

All financial information is based on unaudited management accounts. Certain statements made in this trading update 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.