Experian 2008 Annual Report Download - page 37

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35Experian Annual Report 2008
Governance
38 – 64
Introduction
2 – 5
Financial statements
65 – 144
Business review
Risks and uncertainties
Business review
Risks and uncertainties
Expanding Experian’s email marketing business into
important new markets
Experian acquired Emailing Solution, a leading French
permission-based email marketing company, in May 2007.
The acquisition extended the geographical reach of Experian’s
existing CheetahMail business into one of the largest and
fastest growing email markets in Europe.
Emailing Solution was founded in 2001 and provides email
marketing services in France and Spain to over 500 brands,
including AXA, Orange and Hewlett Packard. Now part of
Experian CheetahMail, clients have access to a wider range of
services and a broader distribution network.
There may be consolidation among
Experian’s clients, which may cause
price compression and a reduction in
its revenue and profits
No single client accounts for more
than 2% of Experian’s revenue,
which reduces the probability of this
potential risk having a significant
impact on the business.
Acquisitions may not meet
expectations
Experian assesses all acquisitions
rigorously, using both in-house
experts and professional advisers.
In addition, the Group conducts
extensive post-acquisition reviews
to ensure performance remains
consistent with the buy plan.
The outcome of litigation could be
unfavourable to Experian
Experian carries insurance cover
against such risks and employs
expert legal personnel in-house,
as well as retaining the services of
several leading legal practices, to
assist in the effective management
and disposal of legal proceedings.
Experian could fail to protect
adequately its valuable intellectual
property rights or face claims
for intellectual property right
infringement
Experian seeks patent protection and
appropriate agreements regarding
its intellectual property rights,
where appropriate and feasible, and
continues to monitor this situation.
Experian could fail to protect
adequately against its exposure to
financial risks
As described in note 3 to the Group
financial statements on page 81,
Experian’s financial risk management
focuses on the unpredictability
of financial markets and seeks to
minimise potential adverse effects on
the Group’s financial performance.