Experian 2008 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2008 Experian 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 148

  • 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
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

12 Experian Annual Report 2008
Interactive
Includes Consumer Direct (online credit
reports, scores and monitoring services
sold direct to consumers) and lead
generation businesses (LowerMyBills,
online education and PriceGrabber)
Revenue at Interactive grew by 5%
in the year.
Consumer Direct continued to
build strongly on its market-leading
position, delivering growth in excess
of 20%. This was driven by further
growth in subscription revenue and
good progress in development of the
affinity channel, for example from the
partnership with American Express.
Experian also continues to invest in
new products with broad market appeal
and which focus on new demographic
opportunities, for example in the
area of fraud prevention and identity
protection.
In lead generation, PriceGrabber
performed well with growth fuelled by
higher referral revenue, good growth in
co-brand partnerships and increased
media revenue. LowerMyBills was
impacted by the severe downturn in
sub-prime mortgage lending, which
led to a significant decline in revenue,
as previously disclosed. Strategically,
the emphasis has been on leveraging
the LowerMyBills platform, integrating
it with the education vertical and
diversifying into new verticals such
as credit card and insurance. The new
platform is now referred to as Experian
Interactive Media and positions
Experian to expand across multiple
vertical markets quickly and efficiently.
Financial review
Revenue from continuing activities
was US$2,061m, up 4%, with organic
revenue growth of 3%. The acquisition
of Hitwise contributed 1% to revenue
growth.
EBIT from direct businesses was
US$554m (2007: US$512m), an
increase of 8% in the year, giving an
EBIT margin of 26.9% (2007: 25.8%).
Margins improved in all four areas,
notwithstanding the difficult market
environment and while funding
investment in the Canadian credit
bureau build.
EBIT from FARES, the 20%-owned
real estate information associate,
was US$54m (2007: US$61m). This
reflected continued cost action,
which helped offset the very weak
environment for mortgage origination.
North America continued
Organic
2008 2007 Growth growth
12 months to 31 March US$m US$m % %
Revenue
– Credit Services 807 804 – –
– Decision Analytics 82 77 7 7
– Marketing Services 380 353 8 2
– Interactive 791 751 5 5
Total – continuing activities 2,061 1,985 4 3
Discontinuing activities1 - 4 n/a
Total North America 2,061 1,989 4
EBIT
– Direct business 554 512 8
– FARES 54 61 (11)
Total – continuing activities 608 573 6
Discontinuing activities1 – (7) n/a
Total North America 608 566 8
EBIT margin2 26.9% 25.8%
1 Discontinuing activities include MetaReward
2 EBIT margin is for continuing direct business only and excludes FARES
Volume of consumer credit reports
(indexed)
115
109
101
100
08
07
06
05
04
117
Volume of emails delivered (indexed)
637
359
212
100
08
07
06
05
04
1,127
08
07
06
05
04