Alliance Data Systems increased revenue 18% to $1.1 billion during the first quarter of 2013 compared to Q1 2012, with Epsilon contributing $318 million, or a 39% increase over Q1 2012. Epsilon's technology and data businesses were essentially flat in Q1 2013, at $104 million and $40 million respectively, compared to $105 million and $40 million in Q1 2012. The agency business increased 110% from $83 million to $174 million, with HMI contributing $74 million. [Press release]
"Data revenue dropped 2% due to continued softness in our consumer demographic data offerings, which offset growth," Horn said. "Agency impressed with revenue increasing 110% for the quarter, aided by the acquisition of HMI in the fourth quarter 2012. Excluding HMI, agency revenue still grew a robust 21%, driven by strength in the telecom vertical. We expect that agency will continue to be the leading driver of revenue growth for Epsilon for the remainder of 2013."
Epsilon is also planning the launch of a new email platform in Q3 2012, which company representatives mentioned several times, and it will add revenue to the technology business, providing growth for the full year.