Experian to sell email marketing business as profits fall
Experian, the information services company which has its UK headquarters in Nottingham, has seen both revenue and profits fall slightly in the six months to 30 September – and is set to sell its email marketing arm.
Revenue was down from £2.239bn in 2015 to £2.236bn this year, whilst operating profit fell from £556m in 2015 to £510m.
The firm also says it is selling its email/cross-channel marketing business. In a statement Experian said: “We have successfully executed on many aspects of our strategy over the past two years. As we look ahead our plans are evolving within the framework we’ve previously laid out of five main pillars; focus, growth, turnaround, efficiency and good capital stewardship.
“Today we are announcing the commencement of a divestment process for our global email/cross-channel marketing business.
“As we have executed against our strategic priorities we have evaluated parts of the Experian portfolio to analyse their strategic fit, and as a result made a number of divestments. Our email/cross-channel marketing business has improved considerably in the past 18 months with significant new client wins, resulting in strong revenue growth in the new cross-channel marketing platform. However, we see fewer synergies between email/cross-channel marketing and the rest of the Group than for other parts of our business and so we commencing a divestment process for the business. Email/cross-channel marketing is expected to contribute approximately US$290m to Group revenue in FY17.”
In the UK and Ireland the firm says organic revenue growth was 1%. The firm says it expects revenue trend to decline throughout the year as it progresses its “business transition”.
