North America
There was a modest organic revenue decline within North America where strength in Interactive partially offset weak market conditions within the financial services and retail sectors. Cost efficiencies delivered enabled margins to be broadly maintained.
| 2009 | 2008 | Total growth1 |
Organic growth1 |
|||||||
| Six months ended 30 September | US$m | US$m | % | % | ||||||
| Revenue | ||||||||||
| Credit Services | 348 | 368 | (5 | ) | (7 | ) | ||||
| Decision Analytics | 55 | 59 | (5 | ) | (5 | ) | ||||
| Marketing Services | 156 | 181 | (14 | ) | (14 | ) | ||||
| Interactive | 451 | 417 | 8 | 8 | ||||||
| Total – continuing activities | 1,010 | 1,025 | (1 | ) | (2 | ) | ||||
| Discontinuing activities2 | 7 | 12 | n/a | |||||||
| Total North America | 1,017 | 1,037 | (2 | ) | ||||||
| EBIT | ||||||||||
| Direct business | 271 | 277 | (2 | ) | ||||||
| FARES | 36 | 23 | 57 | |||||||
| Total – continuing activities | 307 | 300 | 2 | |||||||
| Discontinuing activities2 | (4 | ) | (5 | ) | n/a | |||||
| Total North America | 303 | 295 | 2 | |||||||
| EBIT margin3 | 26.8% | 27.0% |
| 1 | Growth at constant exchange rates |
| 2 | Discontinuing activities include an online data survey business and National Business Database |
| 3 | EBIT margin is for continuing business only, excluding FARES |
Credit Services
Total revenue at Credit Services declined by 5%, with organic revenue down 7%. Within consumer information, prospecting and other lending categories remained depressed, reflecting the weak market for credit origination. Account management remained strong. Business information grew, helped by a number of wins within account management for portfolio scoring. Automotive declined, consistent with the US automotive market.
Strategically, the focus has been on investment to protect the core and to diversify into new growth segments. SearchAmerica (healthcare payments) is growing strongly and is delivering on the acquisition buy-plan. There has also been good progress on organic initiatives, including: business information, following investment in new data sources; the newly-formed government vertical, where a pipeline is building from a small base; and automotive, where the addition of accident data is providing competitive differentiation.
Decision Analytics
Total and organic revenue declined by 5% at Decision Analytics, reflecting reduced client spend on large software installations in the period. Client focus continues to be on improved risk and fraud analytics, loss forecasting and stress testing, as well as on solutions that deliver a quick payback. The business development initiative in capital markets is progressing well and gaining momentum.
Marketing Services
Total and organic revenue at Marketing Services declined by 14%. While traditional media declined, there was some moderation in retailer bankruptcies and store closures in the period. Meanwhile, new media activities grew, as marketers turn to digital media for more cost effective, better-targeted and more measurable campaigns.
Interactive
Total and organic revenue growth was 8% at Interactive. Consumer Direct performed well, driven by growth in transaction revenue and in the affinity channel. During the period Experian undertook a number of initiatives to enhance the online consumer experience for its credit reference products, as well as launching a major new product called ProtectMyID, which is an identity monitoring service.
Performance at Interactive Media improved in the half, helped by strength in the education vertical. PriceGrabber, the comparison shopping service, also delivered growth, benefiting from a strong performance from new co-branded partners.
Financial review
Revenue from continuing activities was US$1,010m, down 1%, with organic revenue down 2%.
EBIT from direct businesses was US$271m (2008: US$277m), a decrease of 2% in the half, giving an EBIT margin of 26.8% (2008: 27.0%). The margin performance reflected strong delivery on cost reductions, including some one-off benefits, which largely offset negative operating leverage in Credit Services and Marketing Services.
EBIT from FARES, the 20%-owned real estate information associate, increased significantly to US$36m (2008: US$23m), driven by higher mortgage refinancing activity.