A wave of new rules following the financial crisis “plays right into our hands”, admitted the chief executive Don Robert as he reported on Experian’s results of its financial year ending March 31st, 2011. Revenues were up 9% reaching US$ 4.24bn. Pre-tax profits were up 13% to US$679m.
Experian wisely expanded into market vertical such as utilities, healthcare and telecoms. At the onset of the global financial crisis Experian was largely dependent on the financial services (over 60%) for its business. It has significantly diversified its client portfolio and today it is less dependent on the financial services sector (less than 40%). It was fortunate to acquire Serasa, the largest Brazilian credit bureau at the height of the financial crisis, which helped to offset significant downturns in its US and UK core markets. Expansion is very much on Experian’s mind. It is on its way to buy Computec, the largest credit bureau in Colombia, which operates similar businesses in Peru and Venezuela, to further cement its strong market position in the region.
Moving forward Experian intends to invest in new technology to bring new functionality to clients and supporting cost-effective expansion in new geographies. It will focus on organic growth in India and Australia, however the Australian Competition and Consumer Commission (ACCC) is challenging Experian’s plans to create a joint venture with Australian Banks.
In the US Experian has announced plans to attack the more than one billion dollar business information market and to invest in new product ranges and sources of data, expecting to become a market leader within 2 to 3 years. A further growth initiative will be multi-channel digital marketing to expand its market position.
Diversification had saved the day for Experian and it is now reaping the benefits of its diversification strategy. It is outpacing its competitors in growth today and is now more than double the size of its nearest competitors. Source: Experian Press Release