news release
Interim Management Statement, third quarter
18 January 2011 - Experian, the global information services company,
today issues an Interim Management Statement that includes an
update on trading for the three months to 31 December 2010.
Commenting on the performance of Experian, Don Robert, Chief Executive
Officer, said:"We are pleased to have delivered another strong
performance in the third quarter. At constant exchange rates, total
revenue growth was 12%, with organic revenue growth of 8%."We have
now returned to positive growth across all regions and principal
activities. Our performance was driven by delivery against our
strategy and helped by gradual recovery in our core markets. For the
year as a whole our expectations are unchanged. We continue to expect
similar rates of organic revenue growth to the first half, and we are
targeting modest improvement in our EBIT margin."
Experian plc
% change in revenue year-on-year for the three months to 31 December
2010
Continuing Total Total growth Organic growth
activities only1 growth
% % %
At actual At constant At constant
exchange exchange rates exchange rates
rates2
North America 13 13 7
Latin America 24 18 18
UK and Ireland 1 4 4
EMEA/Asia Pacific 12 14 7
Experian 12 12 8
1 Continuing activities exclude some UK hosted database activities, UK
mortgage software activities and other smaller discontinuing items
2 Experian reports in US dollars
In the three months to 31 December 2010, total revenue from continuing
activities at Experian increased by 12% at constant exchange rates.
Group organic revenue growth was 8% year-on-year. By principal
activity, organic revenue increased by 7% at Credit Services, by 7% at
Decision Analytics, by 11% at Marketing Services and by 9% at
Interactive.
North America
Total revenue growth in North America was 13%, with organic revenue up
7%. The difference relates to the acquisition of Mighty Net (acquired
September 2010).
Organic revenue growth at Credit Services was 5%. Consumer information
delivered modest growth, helped by gradual recovery in origination
activity. There was good progress across automotive and business
information, as new products gain traction. At Decision Analytics,
organic revenue growth was 1%, with good performances in analytics and
fraud prevention. At Marketing Services, organic revenue growth was 9%,
driven by strong demand for digital services. Organic revenue growth at
Interactive was 9%. The transition to new brands at Consumer Direct is
proceeding well and the business returned to modest organic growth in
the quarter. As expected, while still strong, there was some moderation
in lead generation growth against strong comparables, while
PriceGrabber performed well in its seasonally significant third
quarter.
Latin America
At constant exchange rates, total revenue growth was 18% in Latin
America. Organic revenue growth was also 18%.
Organic revenue growth at Credit Services was 16%. This was driven by
strong performances across both consumer information and business
information, primarily reflecting strength in credit reference volumes
and new customer acquisition in the SME channel. Organic revenue growth
at Decision Analytics was 86%, off a low base. Meanwhile, Marketing
Services is gaining traction, with organic revenue growth of 57%,
benefiting from new product introductions in the region.
UK and Ireland
At constant exchange rates, total revenue growth in UK and Ireland was
4%. Organic revenue growth was also 4%.
Organic revenue at Credit Services declined 1%. New business wins and
some stabilisation in credit volumes helped to drive growth in business
information, largely offsetting a decline in consumer information.
Decision Analytics recovered, delivering organic revenue growth of 10%,
reflecting strength in analytics and fraud prevention, some recovery in
software and delivery of new public sector projects. Organic revenue
growth at Marketing Services was 2%, as client budgets stabilise. At
Interactive, organic revenue growth was 9%, reflecting a combination of
increased membership base and enhanced retention rates at CreditExpert.
EMEA/Asia Pacific
At constant exchange rates, total revenue growth for EMEA/Asia Pacific
was 14%. Organic revenue growth was 7%. The difference related to
A-Care Systems in Japan (acquired December 2009).
At Credit Services, organic revenue declined 3%, reflecting weak
conditions in developed markets. At Decision Analytics, organic revenue
growth was 5%, as revenues continue to build across emerging Europe and
Asia Pacific. There was an exceptionally strong performance at
Marketing Services, which delivered organic revenuegrowth of 24%,
reflecting good take-up of new products and strong client appetite for
digital services.
Gross proceeds of US$314m were received on 31 December 2010 relating to
the previously announced divestment of Experian's stake in the FARES
joint venture. Following payment of tax, Experian expects net proceeds
to be approximately US$250m. Other than this item, and as disclosed in
this Interim Management Statement, there has been no change since 30
September 2010 to Experian's general financial position, which remains
strong, and no material change to Experian's trading position to the
date of this statement.
Future events
Experian will host an investor seminar on 27 January 2011 in London and
on 28 January 2011 in New York. Experian will announce its preliminary
results on 18 May 2011.
Contact:
Experian
Paul Brooks Chief Financial Officer +44 (0)20 3042 4215
Nadia Ridout-Jamieson Director of Investor Relations
James Russell Public Relations Director
Finsbury
Rollo Head +44 (0)20 7251 3801
Don Hunter
This announcement is available on the Experian website,
http://www.experianplc.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 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.
Neither the content of the Company's website, nor the content of any
website accessible from hyperlinks on the Company's website (or any
other website), is incorporated into, or forms part of, this
announcement.
About Experian
Experian is the leading global information services company, providing
data and analytical tools to clients in more than 90 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 2010 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 Sao Paulo, Brazil.
For more information, visit http://www.experianplc.com.
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