Experian announced today its half-yearly financial results for 6 months ended 30th September 2012.  Total revenues from continuing activities are up 15%.   At constant exchange rates, revenue from continuing activities are up 11%.  Organic revenue growth is up 6%.  Total Group revenue of US$2.3bn (2010: US$2.0bn). Further margin progression: EBIT margin from continuing activities up 20 basis points to 24.5%.  Total EBIT from continuing operations are up 16%. At constant exchange rates, EBIT from continuing activities up 12%. Total EBIT of US$560m.

Brazil has overtaken the North American business as the largest Credit Services business in the group and with it continuing to grow at 20% will pass through the $1bn barrier by the end of the financial year. With an EBIT margin of 34% and growing this will be the growth engine of Experian for the foreseeable future. It should be remembered that Experian have an option to buy the remaining 20% of the business as well which would provide a further increase in profit and cash flow.

The Decision Analytics business is growing strongly 14% globally with revenues of $223m assuming this growth rate continues it will be close to $500m in revenues at the year end and Experian could be expected to overtake FICO as the biggest global credit analytics business by the end of 2012.   Decision Analytics revenue in North America and Brazil has the opportunity to grow to 50% of Credit Services revenues organically in the next few years. This would suggest additional revenues in the region of $300-400m per annum.

Strategically Experian sees a lot of opportunity for growth in the long-term across EMEA/Asia Pacific.  Its credit bureau venture in India is making progress.  It received competition clearance for a joint venture credit bureau in Australia.  In Europe Experian is sees new avenues for expansion opening up.

Based on the current earnings releases Experian keeps pulling away further from its nearest competitors.

Source:  Experian Earnings Release