Equifax 2011 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2011 Equifax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

North America Personal Solutions
North America Personal Solutions Twelve Months Ended December 31, Change
2011 vs. 2010 2010 vs. 2009
(Dollars in millions) 2011 2010 2009 $ % $ %
Total operating revenue $180.7 $157.6 $149.0 $23.1 15% $ 8.6 6%
% of consolidated revenue 9% 9% 9%
Total operating income $ 54.1 $ 44.6 $ 34.3 $ 9.5 21% $10.3 30%
Operating margin 29.9% 28.3% 23.0% 1.6 pts 5.3 pts
Revenue increased 15% in 2011 as compared to the prior year
primarily due to increased direct to consumer, Equifax-branded
subscription service revenue. Equifax-branded subscription revenue
was up 17% from the prior year, driven by both higher subscription
sales and higher average revenue per subscriber due to new product
offerings and better market segmentation. Revenue from wholesalers,
which benefited from more favorable pricing, and from Canada also
contributed to growth, while data breach services and transaction-
based services each declined modestly. The operating margin
increase in 2011, as compared to 2010, was primarily due to the
increased revenue along with a shift in product mix to higher margin
products.
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.
North America Commercial Solutions
North America Commercial Solutions Twelve Months Ended December 31, Change
2011 vs. 2010 2010 vs. 2009
(Dollars in millions) 2011 2010 2009 $ % $ %
Total operating revenue $89.3 $80.5 $69.8 $8.8 11% $10.7 15%
% of consolidated revenue 5% 4% 4%
Total operating income $23.6 $19.5 $15.1 $4.1 21% $ 4.4 29%
Operating margin 26.5% 24.2% 21.7% 2.3 pts 2.5 pts
2011 revenue increased $8.8 million, or 11%, as compared to 2010.
In local currency, revenue increased 10% compared 2010 primarily
due to increases in U.S. risk and marketing service revenue and
revenue from our data management products. The favorable impact
of changes in the U.S. — Canadian foreign exchange rate impacted
revenue by $1.0 million, or 1%, as compared to the prior year.
Operating margin also increased for 2011, as compared 2010, due to
strong revenue growth and the margin leverage which results from a
partially fixed cost business.
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 of revenue growth exceeded
growth in operating expenses.
EQUIFAX 2011 ANNUAL REPORT 21