Equifax CEO Richard F. Smith was on the mark by stating: “Equifax’s increasingly diversified business model prositioned us well for the current evnironment.” Indeed it is interesting to note from the slide below that the US$ 1.4 bn acquisition of TALX last year has largely compensated for the negative effects of the credit crunch on the consumer credit information segment. 46% of its traditional core business was down by 7%. TALX alone accounted for US$121.0 million in gain over same period of 2007 or 343%. Commercial credit information grew by 17% and international operations grew by 21%.
Implications: Further concentration on diversification of productlines and customer segments to lessen the heavy reliance on the financial services sector. It will most likely turn the pressure on to grow commercial credit information and make further investments in analytics and geographic expansion.
Source: Equifax Earnings Release
BIIA Newsletter July / August 2008 Issue