First Half Trading Update
Experian Group Limited
10 October 2007
Experian Group Limited
First Half Trading Update
Experian, the global information solutions company, today issues an update on
trading for the six months to 30 September 2007.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer,
said:
'Our business has delivered a robust performance in the first half, against a
more challenging market backdrop in the US and the UK, and particularly for
LowerMyBills. While the revenue environment is tougher, we remain focused on
delivering profit in line with our expectations for the year as a whole.'
Experian Group
% change in sales year-on-year for the six months to 30 September 2007
Continuing Total growth Total growth Organic growth
activities % % %
only(1) At actual At constant At constant
exchange rates exchange rates exchange rates
North America(2) 6% 6% 5%
Latin America(2) 4,438% 4,066% 46%
UK and Ireland 18% 9% 5%
EMEA/Asia Pacific(3) 21% 14% 8%
Experian 17% 14% 6%
(1) Experian is reporting in US dollars
(2) Following the acquisition of Serasa, activities previously reported as
Americas will be reported as North America and Latin America
(3) On 26 September 2007 Experian agreed the sale of Loyalty Solutions, a
leading German point-of-sale network provider. The results presented exclude
Loyalty Solutions for both periods
In the six months to 30 September 2007, sales from continuing activities at
Experian increased by 14% at constant exchange rates, including the first time
contribution of Serasa, the market leading credit bureau in Brazil. Organic
sales growth was 6%. Excluding LowerMyBills, which was affected by the slowdown
in the US mortgage market, group organic sales growth would have been 2
percentage points higher in the half.
Overall organic sales growth reflects robust performance across Credit Services,
where organic sales growth was 4%. Decision Analytics sales increased by 6%,
held back by timing-issues in the UK. There was good progress in Marketing
Solutions, up 3%, reflecting the ongoing repositioning and organic sales growth
at Interactive was 12%. Acquisitions contributed 8% to sales growth.
Experian acquired a number of businesses in the period, with total acquisition
spend of $1.7bn, and agreed the disposal of one business. In addition to the
majority stake in Serasa, Experian acquired Hitwise, a leading online market
intelligence company; Informarketing, a direct marketing services provider in
Brazil; Tallyman, a collections management software business; Emailing Solution,
a leading French permission-based email marketing company; The pH Group, a UK
business-to-business marketing analytics provider; and N4 Solutions, a UK-based
mortgage sector and financial services software provider. Experian also agreed
the sale of Loyalty Solutions, a leading German point-of-sale network provider.
North America
Sales in North America in the six months to 30 September 2007 increased by 6% in
total. Organic growth was 5%, with Hitwise (acquired in June 2007) contributing
the balance.
At Credit Services, growth in non-mortgage activities, account management and
collections offset accelerating decline in mortgage origination. Organic sales
growth was low single-digit demonstrating the resilience of the business model
through economic cycles. Decision Analytics delivered double-digit organic
growth against very strong comparatives, while performance in Marketing
Solutions further improved, with low single-digit organic growth. Organic sales
growth at Interactive slowed to high single-digit, reflecting the impact on
LowerMyBills of the US sub-prime mortgage market where the outlook remains
challenging. Across the remainder of Interactive, growth continues to be strong.
Latin America
Following the acquisition of Serasa, Latin America is now reported as a separate
geographical segment. It includes the Credit Services activities acquired with
Serasa, and Marketing Solutions activities acquired with Informarketing, as well
as Experian's Latin American Decision Analytics activities.
Sales for Latin America for the six month period to 30 September 2007 were $102m
(prior year $2m), including contributions from Serasa (acquired in June 2007)
and Informarketing (acquired in April 2007). Organic growth at constant exchange
rates was 46%, reflecting the performance of Decision Analytics only.
The integration of Serasa is on track and the business performed well in the
period following acquisition, in line with the acquisition buy-plan.
UK and Ireland
Sales from continuing activities in the UK and Ireland increased by 9% in the
six months to 30 September 2007 at constant exchange rates. Organic sales growth
was 5%, with the acquisitions of Eiger Systems (acquired in June 2006), Tallyman
(acquired in May 2007), Hitwise, The pH Group (acquired July 2007) and N4
Solutions (acquired July 2007) contributing the balance.
The market environment for UK financial services is challenging, affecting
Experian's credit and marketing-related activities. Notwithstanding this, Credit
Services performed well, with low single-digit organic sales growth in the half.
Due to timing issues, sales at Decision Analytics were broadly in line with last
year, but given a strong pipeline a return to growth is expected in the second
half. Marketing Solutions delivered a resilient performance, with low
single-digit organic sales growth and Interactive continues to perform very
strongly, with sales doubling in the period.
EMEA/Asia Pacific
At constant exchange rates, sales in EMEA/Asia Pacific increased by 14% in the
first half. Organic sales growth was 8%, with acquisitions, mainly Emailing
Solution (acquired in May 2007), Tallyman and Hitwise, contributing the balance.
Credit Services performed well, delivering mid single-digit organic sales
growth, while there was double-digit organic sales growth at Decision Analytics,
reflecting particularly good performance in Asia. Marketing Solutions also
performed strongly, with double-digit organic sales growth in the period.
Future announcements
Experian will issue its Half-Yearly Report for the six months to 30 September
2007 on 15 November 2007.
Enquiries
Experian
Paul Brooks Chief Financial Officer +44 (0)203 042 4215
Nadia Ridout-Jamieson Director of Investor Relations
Finsbury
Rollo Head +44 (0)207 251 3801
Nick Woodruff
This announcement is available on the Experian website, www.experiangroup.com.
There will be a conference call to discuss this update at 3.00pm today (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.
This information is provided by RNS
The company news service from the London Stock Exchange