Interim Management Statement
Experian Group Limited
12 July 2007
12 July 2007
Experian Group Limited
Interim Management Statement, First Quarter
Experian, the global information solutions company, today issues an update on
trading for the three months to 30 June 2007.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer,
said:
'Overall trading is consistent with our expectations at the time of the
Preliminary Results announcement on 23 May 2007. While we still face challenges
in some markets, we are pleased with the start we have made to the year,
reflecting good performances across the group. For the year as a whole, we
continue to expect organic sales growth at a mid to high single-digit rate, with
acceleration as we move into the second half.'
Experian Group
% change in sales year-on-year for the three months to 30 June 2007
+----------------------+---------------+----------------+----------------+
|Continuing activities | Total growth | Total growth | Organic growth |
|only1 | % | % | % |
| | | | |
+----------------------+---------------+----------------+----------------+
| | At actual | At constant | At constant |
| |exchange rates2| exchange rates | exchange rates |
+----------------------+---------------+----------------+----------------+
|Americas3 | 8 | 8 | 7 |
+----------------------+---------------+----------------+----------------+
|UK and Ireland | 17 | 9 | 6 |
+----------------------+---------------+----------------+----------------+
|EMEA/Asia Pacific | 17 | 11 | 7 |
+----------------------+---------------+----------------+----------------+
|Experian | 11 | 8 | 7 |
+----------------------+---------------+----------------+----------------+
1 As previously disclosed, two businesses have been treated as discontinuing
from 1 April 2006. These are MetaReward's incentive marketing websites, which
have been closed, and large scale UK account processing, where Experian has
announced its phased withdrawal by Autumn 2009
2 Experian is reporting in US dollars
3 Figures exclude the performance of Serasa (see announcement of 26 June 2007),
65% of which was acquired on 28 June 2007. For future trading updates Experian
will split the Americas region into North America and Latin America
In the three months to 30 June 2007, sales from continuing activities at
Experian increased by 8% at constant exchange rates. Organic sales growth was
7%, reflecting solid performance in Credit Services, double-digit growth in
Decision Analytics and modest improvement in Marketing Solutions. Organic sales
growth at Interactive was 13%, the slowdown reflecting the downturn at
LowerMyBills. Acquisitions contributed 1% to sales growth in the period.
Experian acquired five businesses during the quarter, with total acquisition
spend of $1.6bn. These included the purchase of an initial 65% stake in Serasa,
the market leading credit bureau in Brazil, for R$2.32bn (US$1.2bn) and the
acquisition of Hitwise, a leading online market intelligence company, for
US$240m. Other acquisitions were Informarketing, a direct marketing services
provider in Brazil, Tallyman, a collections management software business, and
Emailing Solution, a leading French permission-based email marketing company.
Americas
Sales in the Americas in the three months to 30 June 2007 increased by 8% in
total. Organic growth was 7%, with Informarketing (acquired in April 2007) and
Hitwise (acquired in June 2007), contributing the balance.
Credit Services delivered mid single-digit organic growth in the first quarter,
reflecting steady progress within consumer credit and acceleration within
automotive. Decision Analytics performed well against strong comparatives, while
progress in Marketing Solutions was encouraging, with a return to low
single-digit growth, reflecting an improved backdrop for traditional activities
and strong performances in multi-channel marketing.
Organic sales growth at Interactive was 10% in the first quarter, with the
deceleration reflecting the impact on LowerMyBills of the slowdown in the US
sub-prime mortgage market. Sales at LowerMyBills were down over 20%
year-on-year. Across the remainder of Interactive growth was strong, benefiting
from continued growth in membership revenues and advertising optimisation
initiatives.
UK and Ireland
Sales from continuing activities in the UK and Ireland increased by 9% in the
first quarter at constant exchange rates. Organic sales growth was 6%, with
acquisitions, mainly Eiger Systems (acquired in June 2006), Tallyman (acquired
in May 2007) and Hitwise, contributing the balance.
The environment for UK financial services companies remains tough, with lenders
more focused on portfolio management than origination. Credit Services delivered
low single-digit organic sales growth in the quarter, with mid single-digit
growth at Decision Analytics. Marketing Solutions, where the previously
announced integration process is largely complete, saw a return to growth, with
new contract wins from BSkyB in the period. Interactive sales nearly doubled
year-on-year.
EMEA/Asia Pacific
At constant exchange rates, sales in EMEA/Asia Pacific increased by 11% in the
first quarter. Organic sales growth was 7%, with acquisitions, mainly Emailing
Solution (acquired in May 2007), Tallyman and Hitwise, contributing the balance.
Credit Services delivered mid single-digit organic sales growth, while Decision
Analytics continued to grow strongly, with progress in the period including
contract wins in Eastern Europe and in the telecommunications sector. Marketing
Solutions delivered double-digit organic sales growth.
Future announcements
Experian will hold its AGM in Dublin on 18 July 2007, and will issue its First
Half Trading Update on 10 October 2007.
Enquiries
Experian +44 (0)203 042 4215
Paul Brooks
Chief Financial Officer
Nadia Ridout-Jamieson
Director of Investor Relations
Finsbury +44 (0)207 251 3801
Rollo Head
James Wyatt-Tilby
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 Interim Management Statement 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