UK and Ireland
- Sales from continuing activities
up 9%; 5% organic
- EBIT from continuing activities
up 7%
- EBIT margin of 26.8%
- Challenging market environment
for Credit Services and Marketing Services
- Decision Analytics organic sales
affected by delays to pipeline conversion
- Interactive sales doubled at constant
exchange rates
| |
Six months ended 30 September |
2007 |
2006 |
Growth3 |
Organic |
|
| |
|
|
|
|
growth3 |
|
| |
|
$m |
$m |
% |
% |
|
| |
Sales |
|
|
|
|
|
| |
- Credit Services |
144 |
128 |
5% |
3% |
|
| |
- Decision Analytics |
119 |
105 |
5% |
(1)% |
|
| |
- Marketing Services |
177 |
154 |
7% |
2% |
|
| |
- Interactive |
30 |
14 |
100% |
100% |
|
| |
Total – continuing activities |
471 |
401 |
9% |
5% |
|
| |
Discontinuing activities1 |
28 |
34 |
n/a |
|
|
| |
Total UK and Ireland |
499 |
435 |
6% |
|
|
| |
|
|
|
|
|
|
| |
EBIT - continuing activities |
126 |
110 |
7% |
|
|
| |
Discontinuing activities1 |
6 |
15 |
n/a |
|
|
| |
Total UK and Ireland |
132 |
125 |
(1)% |
|
|
| |
|
|
|
|
|
|
| |
EBIT margin2 |
26.8% |
27.4% |
|
|
|
Operational review
UK and Ireland delivered good growth in a challenging market environment.
This resilience reflects the strength of Experian's market position
and the diversity of its business model.
Credit Services
Includes consumer credit and business information bureaux and
automotive and insurance services
Experian's focus on new product development and investment in
new verticals has enabled Credit Services to grow, notwithstanding
a tough market environment for the financial services sector.
Total sales growth was 5% in the half, with organic sales growth
of 3%. Growth was supported by high levels of activity in collections
and further expansion in the public sector vertical. In addition,
product innovation and a renewed focus on sales execution has
given rise to good sales momentum in business information. Acquisitions
in the period included The pH Group (in July 2007), a provider
of business-to-business marketing analytics, which has performed
well in the period post acquisition.
Decision Analytics
Includes credit analytics, decision support software and fraud
solutions
Total sales for Decision Analytics increased by 5%, with a decrease
of 1% on an organic basis. The decline in organic sales was mainly
attributable to the timing of software deployment for certain
clients which affects the period in which sales are recognised,
as well as to delays in pipeline conversion due to conditions
in the UK financial services market. New business won during the
period was up strongly. There were multi-million dollar, multi-year
contracts secured with blue-chip financial services clients in
customer management (Probe) and application processing (Transact).
During the period Experian acquired the Tallyman collections
management software business (in May 2007) and N4 Solutions (in
July 2007), a mortgage sector and financial services software
provider. Significant opportunities exist to cross-sell products
across Experian’s customer base, and since the period end
Tallyman has secured a significant win from Barclays Bank for
its debt management and collections system.
Marketing Services
Includes data and data management, database management and analytics,
digital services, internet marketing intelligence and business strategies
Total sales in Marketing Services were up 7%, with organic growth
of 2%. Acquisitions contributed 5% to total sales growth, primarily
Eiger Systems and Hitwise. Organic growth in data, data management
and database continued to be tempered by the poor environment
for the UK financial services sector, as customers have cut back
on marketing-related expenditure. Other business lines, which
account for the majority of UK Marketing Services, are less dependent
on financial services and performed well. For example, there were
a number of new data integrity wins for QAS in the public services
sector. The restructuring announced last year has been completed.
Interactive
Comprises CreditExpert (online credit reports, scores and monitoring
services sold direct to consumers) and comparison shopping (PriceGrabber)
Total Interactive sales grew by 100%. CreditExpert continues
to build on its market leading position, with an excellent performance
in the first half. Growth has benefited from further increases
in membership and higher volumes of credit reports delivered.
Experian continues to invest in PriceGrabber UK, which performed
well off a low base.
Financial review
Sales from continuing activities were $471m, up 9% at constant exchange
rates compared to the same period last year. Organic growth was
5%. The contribution to sales growth from acquisitions during the
period was 4%.
EBIT from continuing activities was $126m, an increase of 7%
at constant exchange rates over last year. The EBIT margin was
26.8% (2006: 27.4%), with the slight decline reflecting adverse
acquisition mix.
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