Experian 2007 Annual Report Download - page 29

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gaming and entertainment provider, and Eiger Systems
has been successfully integrated, following its acquisition
in June 2006.
We have previously announced our intention to integrate
UK marketing data, processing and database
management activities into a single business unit,
Experian Integrated Marketing. This will provide a single
point of sale for Experian’s services, an improved
customer proposition and significant cost savings.
Restructuring costs, which will be charged against EBIT,
are expected to be about $12m, of which about $8m
was incurred in the year, with the balance in the year to
March 2008. We expect full payback of the
reorganisation costs in the year to March 2009.
Interactive
Comprises CreditExpert (online credit reports, scores and
monitoring services sold direct to consumers)
Interactive grew sales by 176% over the year. This
excellent performance reflects the strength of demand
for CreditExpert, which benefited from growth in
membership and higher volumes of credit reports
delivered, driven by television and radio advertising and
the strength of marketing partnerships, for example with
AOL, Yahoo and MSN.
Financial review
Total sales from continuing activities were
$843m, up 17% at constant exchange rates
compared to the same period last year. Organic growth
was 7%. The contribution to sales growth from
acquisitions during the year was 10%.
EBIT from continuing activities was $221m, an increase
of 16% at constant exchange rates over last year, prior
to the restructuring charge of $8m. The EBIT margin,
before the restructuring charge, was 26.2% (2006:
26.4%), with the slight decline reflecting the first time
inclusion of ClarityBlue, which has margins below the
average for Experian UK and Ireland. Improved operating
leverage and ongoing cost containment otherwise drove
margin enhancement in the other principal activities.
Experian Annual Report 2007 | 27
12 months to 31 March 2007 2006 Growth3Organic
$m $m % growth3
%
Sales
- Credit Services 266 245 33
- Decision Analytics 215 185 9 8
- Marketing Solutions 329 236 31 1
- Interactive 33 11 176 176
Total – continuing activities 843 677 17 7
Discontinuing activities164 81 na
Total UK and Ireland 907 758 13
EBIT – UK and Ireland 221 179 16
Restructuring charge (8) - na
EBIT – continuing activities 212 179 12
Discontinuing activities124 36 na
Total UK and Ireland 236 215 4
EBIT margin226.2% 26.4%
1 Discontinuing activities include UK account processing
2 EBIT margin for continuing activities only, before restructuring charge
3 Growth at constant FX rates
Sales from continuing activities
in the UK and Ireland
were up 17%
17%