Q1 Interim Management Statement
Interim Management Statement, first quarter
13 July 2012 ─ Experian, the global information services company, today issues an Interim Management Statement that includes an update on trading for the three months to 30 June 2012.
Commenting on the performance of Experian, Don Robert, Chief Executive Officer, said:
"We're pleased to have delivered a strong performance in our first quarter, with total revenue growth of 14% and organic revenue growth of 9%, all at constant exchange rates.
"We continue to execute against our growth strategy, though looking ahead we are mindful of tougher conditions in some markets, notably in the Eurozone. For the first half, we expect high single-digit organic revenue growth and for EBIT to progress in line with revenues, on a constant currency basis. For the full year, we continue to expect performance to be consistent with our core financial objectives of mid to high single-digit organic revenue growth, to maintain or improve margin and achieve cash flow conversion of over 90%."
% change in revenue year-on-year for the three months to 30 June 2012
Continuing activities only1 |
Total growth % |
Total growth % |
Organic growth % |
|
|
At actual exchange rates2 |
At constant exchange rates |
At constant exchange rates |
|
North America |
10 |
10 |
8 |
|
Latin America |
11 |
33 |
18 |
|
UK and Ireland |
4 |
7 |
4 |
|
EMEA/Asia Pacific |
(2) |
5 |
4 |
|
Experian |
7 |
14 |
9 |
1 Continuing activities exclude the contributions of the comparison shopping and lead generation businesses in North America and UK and Ireland, and other small discontinuing items in UK and Ireland and EMEA/Asia Pacific
2 Experian reports in US dollars
In the three months to 30 June 2012, total revenue from continuing activities increased by 14% at constant exchange rates. At actual exchange rates, total revenue from continuing activities increased by 7%, with the difference mainly reflecting depreciation of the Brazilian Real relative to the US dollar. Group organic revenue growth was 9% year-on-year.
By principal activity, organic revenue growth was 10% at Credit Services, 3% at Decision Analytics, 6% at Marketing Services, and 11% at Consumer Services.
North America
Total revenue growth in North America was 10%, with organic revenue growth of 8%. The difference relates largely to the acquisitions of Medical Present Value (acquired June 2011) and Conversen (acquired May 2012).
Credit Services performed strongly, with organic revenue growth of 9%. We continued to benefit from a modest recovery in lending, with particular strength in mortgage activity, and from the introduction of new sources of data and products to manage credit risk. We also made good progress in further penetrating newer customer segments. Decision Analytics performed strongly too, up 18%, reflecting growth in software, fraud prevention and analytics products, and we continue to build a strong pipeline of opportunities. At Marketing Services, organic revenue growth was 3%, with strength in data, analytics and contact management offsetting some softness in transaction volumes. Organic revenue growth at Consumer Services was 7%, reflecting membership revenue growth across our core credit reference and identity protection brands and an initial contribution from a new win in the white-label (affinity) channel.
Latin America
At constant exchange rates, total revenue growth in Latin America was 33%. Organic revenue growth was 18%. The difference relates to the acquisitions of Virid Interatividade Digital (acquired July 2011) and Computec (completed in November 2011).
Credit Services performed well, with organic revenue growth of 16%, driven by new sources of data, expansion in the small and medium enterprise segment and further progress across new customer segments, such as telecommunications, utilities and insurance. As previously indicated, we now recognise some Latin American revenues from scores and value-added products in Decision Analytics rather than in Credit Services. Decision Analytics performed strongly, with organic revenue growth of 32%, reflecting strong growth in scoring revenue and fraud prevention products. Marketing Services also performed well, with organic revenue growth of 67%, including several new business wins.
UK and Ireland
At constant exchange rates, total revenue growth in UK and Ireland was 7%. Organic revenue growth was 4%. The difference relates to the acquisitions of LM Group (acquired July 2011), Garlik (acquired December 2011) and 192business (completed February 2012).
Organic revenue at Credit Services was flat. While the lending environment in the UK remained fairly subdued, there was good progress in the telecommunications, utilities and automotive segments. As expected, organic revenue at Decision Analytics declined, down (4%), against a strong comparable and the phasing of certain contract wins; pipelines remain strong. At Marketing Services, organic revenue declined 2%, reflecting soft market conditions. Consumer Services performed very strongly, with organic revenue growth of 30%, reflecting the success of the bundled consumer proposition, which continues to drive increased lifetime value per member.
EMEA/Asia Pacific
At constant exchange rates, total revenue growth for EMEA/Asia Pacific was 5%. Organic revenue growth was 4%. The difference relates to the acquisition of Altovision (March 2012).
Organic revenue growth at Credit Services was 2%, benefiting from continued resilience across the majority of our bureau markets in Europe and growth in Asia Pacific. At Decision Analytics, organic revenue declined 8%, having suffered difficult trading conditions. Marketing Services performed exceptionally well, with organic revenue growth of 12%, led by growth in digital channels.
Financial position
On 3 July 2012, Experian issued US$600m 2.375% notes due 2017, rated Baa1/A-. Other than as disclosed, there has been no change since 31 March 2012 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 hold its AGM on 18 July 2012 and release its half-yearly financial report to 30 September 2012 on 8 November 2012.
Contact:
Experian
Nadia Ridout-Jamieson Director of Investor Relations +44 (0)20 3042 4215
James Russell Communications Director, UK&I and EMEA
RLM Finsbury
Rollo Head +44 (0)20 7251 3801
Don Hunter
This announcement is available on the Experian website at 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 in this Interim Management Statement 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 around the world. The Group 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 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
This information is provided by RNS
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