Trading Statement
Experian Group Limited
10 January 2007
10 January 2007
Experian Group Limited
Third Quarter Trading Update
Experian, the global information solutions company, today issues an update on
trading in the three months to 31 December 2006.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer,
said:
'We are pleased with the way our businesses have performed around the world.
There was particularly strong organic growth in the quarter, helped by
exceptional results from Consumer Direct and PriceGrabber.com. Looking forward,
while we continue to face specific challenges in some of our markets, we remain
confident about the outlook for the full year.'
Experian Group
% change in sales year-on-year for the three months to 31 December 2006
+----------------------+---------------+----------------+----------------+
|Continuing activities | Total growth | Total growth | Organic growth |
|only* | | | |
| | % | % | % |
+----------------------+---------------+----------------+----------------+
| | At actual | At constant | At constant |
| |exchange rates#| exchange rates | exchange rates |
+----------------------+---------------+----------------+----------------+
|Americas+ | 15 | 15 | 10 |
+----------------------+---------------+----------------+----------------+
|UK and Ireland | 35 | 22 | 7 |
+----------------------+---------------+----------------+----------------+
|EMEA/Asia Pacific | 17 | 10 | 8 |
+----------------------+---------------+----------------+----------------+
|Experian | 20 | 16 | 9 |
+----------------------+---------------+----------------+----------------+
* 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
# Experian is reporting in US dollars
+ PriceGrabber.com has been included in organic growth for the period since its
acquisition in mid-December 2005
In the three months to 31 December 2006, sales from continuing activities at
Experian increased by 16% at constant exchange rates. Organic growth was 9%,
reflecting, as expected, an acceleration in US Credit Services, exceptional
performance from Consumer Direct and PriceGrabber.com, and continued strong
growth from Decision Analytics. Acquisitions contributed 7% to sales growth in
the period.
Experian acquired three businesses during the quarter - a business and consumer
credit bureau in Estonia, Adhoc Solutions (Belgian micromarketing) and an
additional affiliate credit bureau in the US, for a combined consideration of
$20m plus earn-outs.
Americas
In dollars, sales in the Americas from continuing activities in the three months
to 31 December 2006 increased by 15% in total. Organic growth was 10%, with
PriceGrabber, which was acquired in mid-December 2005, generating the remaining
5%.
Against easier comparatives, Credit Services saw a return to low single-digit
organic growth. Decision Analytics continued to perform very strongly in the
period, while organic sales in Marketing Solutions were in line with last year.
Interactive's organic sales growth was again above 20% in the period, with an
exceptional performance from Consumer Direct. PriceGrabber delivered total pro
forma year-on-year growth of around 40% in this seasonally important quarter,
benefiting in particular from higher traffic from free and organic search
channels.
UK and Ireland
Sales from continuing activities in the UK and Ireland increased by 22% in the
third quarter at constant exchange rates. Organic growth was 7%, with
acquisitions, mainly FootFall (acquired in December 2005), ClarityBlue (acquired
in January 2006) and Eiger Systems (acquired in June 2006) contributing the
balance.
Both Credit Services and Marketing Solutions showed low single-digit organic
sales growth in the quarter, reflecting continuing difficult conditions in the
UK credit market. Sales at Consumer Direct in the UK nearly tripled.
Decision Analytics performed well, with Experian's market leadership in fraud
prevention being reinforced by the renewal of a five-year contract for running
the UK's national fraud data sharing system (National Hunter). Experian also
signed a new contract with Royal Bank of Scotland to prevent application fraud
across its UK banking and insurance activities.
EMEA/Asia Pacific
At constant exchange rates, sales from continuing activities in EMEA/Asia
Pacific increased by 10% in the quarter, of which organic growth contributed 8%.
There was improved growth in Credit Services, including double-digit increases
from the consumer credit bureaux in Southern and Eastern Europe and South
Africa.
Sales in Decision Analytics increased by strong double-digit rates. During the
quarter, Experian signed a contract to deliver its strategy management software
to Shenzhen Development Bank in China. Shenzhen has a strategic alliance with GE
Money, which uses Experian's decision support software in over 20 countries
around the world.
Future announcements
Experian will issue its Second Half Trading Update on 17 April 2007. Its
Preliminary Results will be announced on 23 May 2007.
Enquiries
Experian
Paul Brooks
Chief Financial Officer 0203 042 4200
Fay Dodds
Director of Investor Relations
Finsbury
Rollo Head 0207 251 3801
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 with a
recording available later on the website.
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