Equifax 2010 Annual Report Download - page 22

North America Personal Solutions
North America Personal Solutions Twelve Months Ended December 31, Change
2010 vs. 2009 2009 vs. 2008
(Dollars in millions) 2010 2009 2008 $ % $ %
Total operating revenue $157.6 $149.0 $162.6 $ 8.6 6% $(13.6) -8%
% of consolidated revenue 9% 9% 9%
Total operating income $ 44.6 $ 34.3 $ 46.3 $10.3 30% $(12.0) -26%
Operating margin 28.3% 23.0% 28.4% 5.3 pts -5.4 pts
The increase in revenue for 2010, as compared to 2009, was
primarily due to increased direct to customer, Equifax-branded
subscription service revenue, which was up 11% from 2009, driven
by higher average revenue per subscriber due to new product offer-
ings and better market segmentation. The increase in subscription
revenue was partially offset by lower transaction sales and lower
corporate breach revenues. The operating margin increase was
primarily due to the revenue growth and operating efficiencies.
Revenue declined for 2009, as compared to 2008, primarily due to
lower transaction sales, as a result of lower levels of new consumer
credit activity, and lower corporate data breach revenues. These
declines were partially offset by direct to consumer, Equifax-branded
subscription service revenue, which was up 4% for 2009, as
compared to the prior year, driven by higher new sales and higher
average revenue per subscription, reflecting additional features in the
Equifax offering. Total subscription customers, including direct to
consumer Equifax-branded services and subscriptions related to data
breach offers, were 1.0 million at December 31, 2009. The operating
margin decline in 2009, as compared to the prior year, was primarily
due to the revenue decline discussed above, as well as increased
advertising expenses, as the Company introduced a 2009 television
advertising program in order to increase direct subscription sales.
North America Commercial Solutions
North America Commercial Solutions Twelve Months Ended December 31, Change
2010 vs. 2009 2009 vs. 2008
(Dollars in millions) 2010 2009 2008 $ % $ %
Total operating revenue $80.5 $69.8 $71.5 $10.7 15% $(1.7) -2%
% of consolidated revenue 4% 4% 4%
Total operating income $19.5 $15.1 $13.6 $ 4.4 29% $ 1.5 11%
Operating margin 24.2% 21.7% 19.0% 2.5 pts 2.7 pts
Revenue increased for 2010, as compared to 2009, $10.7 million, or
15%. The favorable impact of changes in the U.S. — Canadian
foreign exchange rate increased revenue by $2.3 million, or 3%. In
local currency, revenue increased 12% in 2010 compared to the prior
year. The local currency increase was primarily due to increases in
U.S. risk and marketing service revenue and revenue from our data
management products. Online transaction volume for U.S. com-
mercial credit information products for 2010 increased when
compared to the prior year. Operating margin increased for 2010, as
compared to 2009, as the rapid rate in revenue growth exceeded
growth in operating expenses.
Revenue declined for 2009, as compared to the prior year, due to the
unfavorable impact of changes in the U.S. — Canadian foreign
exchange rate of $1.7 million, or 2%. In local currency, 2009 revenue
was flat when compared to 2008. Revenue declines in the U.S.
and Canadian risk and marketing service revenues attributed to
weakness in the U.S. and Canadian economies were offset by
increased revenue from our data management products. Online
transaction volume for U.S. commercial credit information products
decreased 21% for 2009, as compared to the prior year, due to a
slowdown in loan origination to small businesses. Operating margin
increased for 2009, as compared to 2008, mainly due to reduced
operating expenses resulting from lower personnel costs and
discretionary expenses.
General Corporate Expense
General Corporate Expense Twelve Months Ended December 31, Change
2010 vs. 2009 2009 vs. 2008
(Dollars in millions) 2010 2009 2008 $ % $ %
General corporate expense $115.4 $121.3 $122.8 $(5.9) -5% $(1.5) -1%
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS continued
EQUIFAX 2010 ANNUAL REPORT
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