15 April 2010
Experian, the global information services company, today issues an update on trading for the six months to 31 March 2010.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer, said:
“I am pleased to announce that organic revenue growth at Experian showed some improvement in the second half. At constant exchange rates, total revenue growth for the half was 3%, with organic revenue growth of 2% (Q3 +1%, Q4 +3%). Latin America performed strongly, and we are pleased that our North America region returned to growth in the period. For the full year to 31 March 2010, we expect to deliver good profit and cash outcomes.”
|Continuing activities only1||Total growth %|
At actual exchange rates2
|Total growth %|
At constant exchange rates
|Organic growth %|
At constant exchange rates
|UK and Ireland||6||(2)||(2)|
In the six months to 31 March 2010, revenue from continuing activities at Experian increased by 3% at constant exchange rates. Group organic revenue growth was 2% year-on-year. Organic revenue was up 10% at Interactive and up 2% at Credit Services. Organic revenue was flat at Marketing Services and declined 5% at Decision Analytics.
Total revenue in North America from continuing activities increased 2%, with organic revenue up 1%. The difference relates to SearchAmerica, which annualised in the half (acquired in December 2008).
Organic revenue at Credit Services declined 5%. While origination revenues in consumer information declined year-on-year, there was an improved trend in non-mortgage origination as the period progressed. Meanwhile business information, automotive and healthcare payments performed well. Organic revenue at Decision Analytics declined 2%. There was continued strength in fraud prevention and analytical tools, offset by depressed demand for software. At Marketing Services, organic revenue declined 2%, with further moderation in declines at traditional media and good growth in new media channels.
Organic revenue growth at Interactive was 8%, with strong performances in lead generation, as well as at PriceGrabber. Growth at Consumer Direct was in line year-on-year, reflecting reduced marketing spend by Experian while awaiting clarification of new regulatory requirements.
Total revenue for Latin America increased 17% at constant exchange rates. Organic revenue growth was also 17%.
Organic revenue at Credit Services rose 19%. There was good growth at both consumer information and business information, helped by further penetration of the SME channel. In addition, there was a significant contribution from authentication products, which ramped up in the period.
At constant exchange rates, total revenue in UK and Ireland declined 2%. Organic revenue also declined 2%.
Organic revenue at Credit Services declined 7%, reflecting the continued impact of origination volume declines, financial services consolidation and market exits, partially offset by growth in non-financial verticals. At Decision Analytics, organic revenue declined 9%, due to client capital expenditure constraints and weakness in transaction volumes. At Marketing Services, organic revenue was down 2%. Despite the tough economic environment, which continued to suppress client marketing budgets, new media channels performed well, helping to offset declines elsewhere. Interactive delivered strong growth, up 27%.
At constant exchange rates, total revenue for EMEA/Asia Pacific increased 8%. Organic revenue increased 1%. The acquisition contribution relates mainly to United MailSolutions in Germany (acquired October 2009) and A-Care Systems in Japan (acquired December 2009).
Organic revenue declined 3% at Credit Services against a strong prior year comparative which included a number of one-offs. At Decision Analytics, organic revenue grew 1% reflecting a robust performance in established markets and good growth in emerging markets. There was also good growth at Marketing Services, with organic revenue up 8%, reflecting increased market penetration and new product launches across the Asia Pacific region.
Experian will issue its full year results announcement on 19 May 2010.
|Paul Brooks||Chief Financial Officer||+44 (0)203 042 4215|
|Nadia Ridout-Jamieson||Director of Investor Relations|
|James Russell||Public Relations Director|
|Rollo Head||+44 (0)207 251 3801|
This announcement is available on the Experian website, www.experiangroup.com. There will be a conference call today to discuss this update at 9.00am (UK time), which 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.
Total growth: this is the year-on-year change in the performance of Experian’s activities. Total growth at constant exchange rates removes the translational foreign exchange effects arising on consolidation of Experian’s activities.
Organic growth: this is the year-on-year change in continuing activities revenue, at constant transactional and translation exchange rates, excluding acquisitions (other than affiliate credit bureaux) until the first anniversary date of consolidation.
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2009 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit www.experianplc.com.