D&B reported that its first quarter performance was in-line with expectations and it remains on track to meet 2011 guidance. It continues to make good progress with its Strategic Technology initiative.
Core Revenue was up 5% Both Before and After the Effect of Foreign Exchange.
Risk Management Solutions revenue was $266.5 million, up 7% before the effect of foreign exchange (up 8% after the effect of foreign exchange). Sales & Marketing Solutions revenue was $107.2 million, down 1% before the effect of foreign exchange (flat after the effect of foreign exchange)). Internet Solutions revenue was $29.9 million, up 6% both before and after the effect of foreign exchange.
In the first quarter of 2011, D&B realigned its geographic reporting segments in order to be more aligned with its business subsequent to the acquisition of Dun & Bradstreet Australia Holdings Limited (“D&B Australia”) during the third quarter 2010. It now reports three segments: North America, Asia Pacific and Europe & Other International Markets.
D&B’s International operations are still growing faster than its North American based businesses. The lack of current operating income from Asia – Pacific may be due to expense investments in China and India in support of growth.
D&B stated that its Strategic Technology Investment is progressing well. Data Supply Chain: Early design testing is encouraging, as the capacity of the new data supply chain will actually be much greater than originally expected (10x the current capacity). Web service layer: The first set of services went into production late in 2010 and additional services continue to roll out with the D&B360 product. Expected completion: First half of 2012.
Source: D&B Q1 Earnings Report
