TransUnion - TRU STOCK NEWS

TransUnion (NYSE:TRU) has announced a definitive agreement to acquire majority ownership of Trans Union de Mexico, the consumer credit business of Buró de Crédito, Mexico's largest credit bureau. The transaction, valued at approximately MXN 11.5 billion ($560 million), will increase TransUnion's ownership from 26% to 94%.

The acquisition targets a business expected to generate approximately $145 million in revenue and $70 million in Adjusted EBITDA in 2024. The deal excludes Buró de Crédito's commercial credit business and is expected to close by the end of 2025, subject to regulatory approvals.

TransUnion plans to leverage its global operating model to strengthen services in the Mexican market, focusing on financial inclusion and introducing products like trended and alternative credit data, fraud mitigation solutions, and consumer engagement tools. The company intends to increase its workforce in Mexico to support the transaction and enhance regional capabilities.

TransUnion (NYSE: TRU) has released its sixth annual debt collections report, revealing that 52% of debt collection companies experienced increased account volumes in the past 12 months. While 62% expect better financial positions next year, companies face challenges with decreased collectability since 2020 and rising concerns about data security and compliance.

The report highlights significant technological investments, with AI adoption growing from 11% in 2023 to 18% in 2024. Top AI applications include account segmentation (57%), payment outcome prediction (57%), and self-service negotiations (56%). Traditional communication methods remain dominant, with letters (87%) and telephone calls (86%) leading, followed by email (74%). Notable trends include a 24% decline in credit bureau data furnishing and increased adoption of online payment portals, rising from 79% to 88%, with 25% of companies collecting over 40% of payments through this channel.

TransUnion (NYSE: TRU) has announced it will release its financial results for the fourth quarter ended December 31, 2024, on Thursday, February 13, 2025. The company will issue a press release at approximately 6:00 a.m. Central Time, followed by a conference call at 8:30 a.m. Central Time to discuss the financial results. Both the press release and a live webcast of the earnings conference call will be accessible through TransUnion's Investor Relations website.

TransUnion (NYSE: TRU) released new Forrester Consulting research highlighting significant challenges in marketing technology management. The study reveals that 70% of marketing leaders struggle to identify and reach audiences across multiple touchpoints, while two-thirds manage 16 or more martech solutions.

The research identified key challenges including inability to deliver personalization across customer journeys, difficulty scaling marketing efforts, challenges in implementing AI capabilities, and wasted marketing spend. However, organizations using identity resolution tools reported positive outcomes:

• 93% meet or exceed customer experience goals
• 88% meet or exceed customer insights goals
• 79% meet or exceed data-driven decision-making goals

TransUnion (NYSE:TRU) has announced a definitive agreement to acquire the remaining 70% stake in Monevo, a UK-based credit prequalification and distribution platform, after acquiring an initial 30% stake in 2021. Monevo's platform connects over 150 banks and credit providers with comparison websites and online brands, enabling personalized credit offers primarily in the UK and US markets.

The platform benefits multiple stakeholders: consumers can check credit approval likelihood without impacting their credit scores, publishers gain higher conversion rates through personalized engagement, and lenders can optimize acquisition costs while improving consumer experience. The acquisition, expected to close by Q2 2025, will be funded with existing cash-on-hand and is not expected to materially impact TransUnion's leverage, liquidity, or 2025 operating results.

TransUnion's 2025 Consumer Credit Forecast projects a slowdown in the growth of both credit card balances and delinquencies by the end of 2025. Following four years of increases, credit card balances are expected to rise to $1.1 trillion by the end of 2025, a YoY increase of 4.4%, significantly lower than the 18.5% and 12.6% growth in 2022 and 2023. The number of active credit cards has increased to 554.5 million in Q3 2024, up from 451.6 million in Q3 2020. Despite these increases, balances among non-prime borrowers are forecasted to grow at slower rates in 2024 and 2025 compared to the previous two years.

Serious credit card delinquency rates (90+ DPD) are anticipated to rise to 2.76% in 2025, a 12 bps YoY increase, but still lower than the increases observed in 2022 and 2023. Other credit products like auto loans, unsecured personal loans, and mortgages show mixed delinquency trends, with auto loan delinquencies expected to decline slightly in Q4 2025, and unsecured personal loan and mortgage delinquencies remaining relatively stable.

TransUnion's projections are based on various economic factors and could change if there are unanticipated economic shocks.

TransUnion's analysis reveals that 4.6% of global attempted ecommerce transactions during the 2024 Cyber Five period (Thanksgiving to Cyber Monday) were suspected to be Digital Fraud, down from 6.0% in 2023. In the U.S., the fraud rate was 4.2%, decreased from 5.8% last year.

The highest fraud rates were recorded on Thanksgiving Day (November 28) at 5.3% globally and 5.4% in the U.S. The average number of suspected fraud attempts during the holiday period was 30.2% lower than in 2023 and 5.9% lower than during the rest of 2024.

According to TransUnion's Q4 2024 Consumer Pulse Study, 64% of U.S. consumers expressed concern about digital fraud during the holiday shopping season.

TransUnion (NYSE: TRU) has been recognized as a Leader in the Gartner Magic Quadrant for Marketing Mix Modeling (MMM) Solutions, based on their 'Completeness of Vision' and 'Ability to Execute.' The company's TruAudience® solutions suite was highlighted for its rapid deployment capabilities, comprehensive consumer data analysis, and strong customer relationships.

Key strengths include the ability to deploy models in as little as two months, extensive consumer data insights for marketing investment optimization, and dedicated customer support through regular business reviews. Matt Spiegel, executive vice president of TruAudience marketing solutions, emphasized the company's commitment to helping clients transform data into actionable insights and create meaningful impact.

TransUnion's Q4 2024 Consumer Pulse study reveals Millennials are leading the holiday shopping charge, with 33% planning to spend over $500 - the highest among all generations. The study, surveying 3,000 American adults, shows 65% of Millennials are optimistic about their finances, surpassing the 58% overall population average. Credit cards remain the preferred payment method at 38%, followed by debit cards (31%) and cash (16%). Despite inflation concerns, 81% of Americans reported stable or increased income, with 93% expecting this trend to continue. The study indicates that most holiday shopping (67%) occurs online, with peak activity between Thanksgiving and Cyber Monday.