Experian’s total revenues were down (6%) at actual exchange rates, and up 1% at constant exchange rates.  In a recent trading update Experian management stated that in North America there appear to be signs of stability but it expects recovery to be slow. 

North America:  Growth was flat (1%), and in the UK growth at actual exchange rates was (18%) and flat at constant exchange rates.  In the UK and US, which are Experian’s two major markets, lenders remain preoccupied in repairing their balance sheets in response to higher credit losses. Risk management remains a key focus for Experian’s clients as shareholder pressure and calls for regulatory reform have placed more pressure on the banks for improved risk analytics, loss forecasting and stress testing, which presents opportunities for Experian. 

In US Marketing Services Experian’s management believes it may have seen the worst of the decline in traditional marketing.  The significant contraction caused by retailer bankruptcy and store closures has bottomed out. In both the US and UK Experian continues to see good growth in our newer marketing activities as marketers turn to digital media for more cost effective, measurable campaigns.   In vertical markets outside financial services we are finding clients willing to spend on new data, technology and analytics, especially where it provides greater operational efficiency. Utilities, telecommunications, healthcare payments and governmental sectors all continue to grow. 

Latin America: Growth at actual exchange rates was down (3%), and up 14% at constant exchange rates.  Because of structural growth drivers in the Brazilian credit market and the strength of Experian’s market position there; the business in Latin America has been much less affected by the economy. The outlook for consumer and commercial credit is strong and it is continuing to improve.

Emerging Markets: Growth rate was down (3%) at actual exchange rates and up 5% at constant exchange rates.  There are other bright spots for Experian globally, especially in emerging markets and Experian’s management is very optimistic about its prospects.  South Africa, Turkey, China, Korea and Russia are small markets today, but they are growing rapidly.

BIIA Newsletter November – December 2009 Issue