Latin America
- Sales of $102m
- EBIT of $24m
- EBIT margin of 23.5%
- Acquisition of 70% stake in Serasa
transforms Experian’s presence in Latin America
| |
Six months ended 30 September |
2007 |
2006 |
Growth1 |
Organic |
|
| |
|
|
|
|
growth1 |
|
| |
|
$m |
$m |
% |
% |
|
| |
Sales |
|
|
|
|
|
| |
- Credit Services |
96 |
- |
n/a |
n/a |
|
| |
- Decision Analytics |
3 |
2 |
46% |
46% |
|
| |
- Marketing Services |
3 |
- |
n/a |
n/a |
|
| |
Total Latin America |
102 |
2 |
4,066% |
46% |
|
| |
|
|
|
|
|
|
| |
EBIT |
|
|
|
|
|
| |
- Latin America |
28 |
(2) |
1,751% |
|
|
| |
- Serasa integration charge |
(4) |
- |
n/a |
|
|
| |
Total Latin America |
24 |
(2) |
1,494% |
|
|
| |
|
|
|
|
|
|
| |
EBIT margin |
23.5% |
n/a |
|
|
|
Operational review
The acquisition of a majority stake in Serasa has transformed Experian’s
activities in Latin America, and the region is now reported as a
separate geographical segment.
Credit Services
Includes consumer credit and business information bureaux
The acquisition of a 65% stake in Serasa in June 2007 (since increased
to 70%) provides Experian with the market-leading credit bureau
in Brazil, and exposure to one of the most attractive markets for
credit products globally. The financial outlook for loan growth
in Brazil continues to be positive, with strong growth in retail
lending, personal loans, vehicle financing and mortgage financing.
Sales in Credit Services were $96m. During the period Serasa
performed well, in line with the acquisition buy plan. There was
good progress on the integration plan, with the appointment of
key personnel, progress towards back office consolidation and
identification of revenue synergy opportunities.
Decision Analytics
Includes credit analytics and decision support software
Decision Analytics made excellent progress in Latin America over the period from a low base, with sales growth of 46%. Client wins included Telefonica, the leading telecommunications provider in Brazil.
Marketing Services
Includes marketing data and analytics
Sales in Marketing Services were $3m in the period following
the acquisition of Informarketing in April 2007. The integration
of Informarketing has progressed well, with good client wins in
the period of ownership.
Financial review
Sales were $102m, reflecting the first time contribution from Serasa.
Organic growth was 46%.
EBIT in the period was $24m, delivering an EBIT margin of 23.5%.
EBIT includes a favourable IFRS adjustment of $3m, principally
in relation to the differential treatment of capitalisation of
data assets for Serasa under Brazilian GAAP, with $9m expected
for the nine months to 31 March 2008. Integration charges in relation
to the Serasa acquisition of $4m were incurred in the period,
with $11m expected for the nine months to 31 March 2008.
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