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."
- 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
- 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.